Know Some Interesting Facts About No Money Down Payments For A Car Loan

Oct. 12, 2009 - PRLog -- Down payment is crucial in qualifying for a car loan (http://www.crestcarloan.com), more so if you have bad credit or low credit scores. Although there are financiers offering loans without down payment provided you have a trade-in or purchase a new car which has a rebate, it is more advisable to have a down payment of at least 20%. This is because you may find yourself owing more than what the car is actually worth if the car value decreases, hence incurring negative equity.

Borrowers who are students or those that have low income often cannot afford to use cash as down payment. Contrary to popular belief, cash is not the sole way of making down payment for a car loan (http://www.crestcarloan.com). There do exist other ways of doing this, which is discussed below.

1. Use of trade-in: You can trade in your current car and have its appraised value deducted from the new car's price. Most auto financiers will consider the trade-in value as down payment as it is not only beneficial to you but to them as well. For example, you want to purchase a vehicle for $20,000 without down payment but have a trade-in vehicle that is worth $900. However, according to the financier's terms, there is a requirement for a down payment of $9,000. What happens in this case is that the dealer will raise the purchase price to $21,000 showing that the down payment is $1,000 as the trade-in value is $900. Therefore the net purchase price will be $19,900 i.e. $20,000 minus $100 provided by the trade-in. the buying price, thus, will be as if the car was sold at 20,000 and you gave $900 as trade in. This way you are able to secure a car loan with no down payment and bad credit scores which getting flexible terms and lower rates.

2. Car rebates: This is an option you can use if you have no trade-in car or if you haven't finished paying for that car. Many lenders will consider the rebates as down payment. Lenders offer rebates to assist car buyers in meeting the minimum down payment.

Although many financiers can offer you a car loan (http://www.crestcarloan.com) without down payment despite your credit score, they will probably charge you a higher rate. The possibility of getting unfavorable terms and getting ripped off is also high. This however is no reason to despair. There is hope yet for low income earners or students who have just started working and have insufficient funds for a car loan (http://www.crestcarloan.com) down payment if they take advantage of the tools above.

Crest Car Loan is your best source for car loans or bad credit car loans online. If you have really bad car credit, bankruptcy, poor credit or a low car credit score we have car loan programs that can provide financing at low interest rates that will help you buy the new or used car you really want at payments you can afford. More information about Crest Car Loan can be found at http://www.crestcarloan.com.

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Crest Car Loan is your best source for car loans or bad credit car loans online. More information about Crest Car Loan can be found at http://www.crestcarloan.com.