When you buy a car, it’s customary to put some money down on the purchase. What if you don’t have the money? Getting an auto loan without a down payment may be an option, but the loan and application requirements are a little different. If you’re thinking about buying a car with no money down, here’s what to keep top of mind before shopping.

Down Payment vs. No Down Payment Car Loans

Making a down payment on a car loan shows the lender you’re committed to paying on time. When you don’t put any of your money on the line, you represent a bigger risk to the lender. You also end up with a higher loan amount, which increases the monthly bill or loan term. That’s why buyers who do not put money down often end up with higher interest rates or a lower limit on the amount they can borrow.

How to Get a No Money Down Car Loan 

Need a car but don’t have cash for a down payment? You may have options. You’ll probably pay more than if you wait until you have more money, but consider these ideas as well:

1. Improve your credit score. By doing this, you may not need to make a down payment. Request a free copy of your credit report, which you can do once a year from each of the three reporting agencies. Check for errors, and dispute any that you find. It can take a few months to see a resolution, so possibly try other routes if you’re in a hurry. 
2. Shop for loans. When buying a car, you might look at numerous dealerships to see which one has the vehicle you want. Do the same for loans. Lenders look at your application differently, which means that one might be more interested in giving you a loan with no down payment.

Try a buy here pay here location like JDBNOW. With our in-house financing department, we aren't at the mercy of 3rd party banks when it comes to making decisions on our loan approvals. Get approved and during in the same-day! 

3. Buy a less-expensive car. Since buying a car with nothing down usually means a higher monthly payment, consider vehicles that cost less. Lenders look at your payment in relation to your income, and may not approve a loan that takes too much. A decrease of $1,000 or $2,000 could make it easier to get a loan. 
4. Get a co-signer. If all else fails, ask someone to be a co-signer for your loan. A co-signer mitigates the loan’s risk. Lenders might be more willing to grant one to you without a down payment.

If you need a car loan but can’t make a down payment, research all of your options. Visit JDBNOW to learn more about our buy here pay here in-house financing or browse our vehicles.