How Down Payments Affect Auto Financing

In many cases people look to avoid down payments when applying for auto financing, which could actually have a negative affect on your loan process. Of course, this usually depends on your credit status as sub-prime car loans with zero money down for people with good credit are not as difficult to receive. However, those seeking bad credit loans or having other credit problems can face a number of issues with this decision.

Bad Credit Financing with No Down Payment

A critical part of bad credit car financing is in providing a down payment; however, auto loans with no down payment are not foreign to lending companies. The only difference is that much more will be required from an applicant in order to convince a dealer. It's also worth mentioning that providing auto financing with zero down payment is not one of the favorite types of financing opportunities offered by lenders for a few good reasons.