Bad Credit New Car Loans – No money down
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In the market for a new car? Then you are going to need to shop for financing as well. You may have a number of questions about applying for affordable new car loans. In this article, we will tell you all you need to know to make your new automobile purchase easy and affordable.
To make it simple for you to find a new auto loan, we have compiled a table of trusted and vetted online lenders for auto loans. Our suggested companies offer unsecured loans and are willing to consider borrowers with a wide range of credit scores. You can click on any of the links in our chart below to get started, or keep reading past the chart to find out more about new car loans.
Best Bad Credit New Car Loans with No money down
What Should You Know About New Car Loan Interest Rates?
You know that a new car costs more than a used car. So you might think that the same would be true of a new car loan in comparison to a used car loan. But in actuality, the reverse tends to be true. Most of the time, interest rates are lower for new cars than they are for those which are used. So that is great news for you.
What Credit Score Do You Need to Qualify for a New Car Loan?
While the most competitive new auto loans tend to be reserved for customers with the highest credit scores, you do not need to have good credit to be eligible for a new car loan with a reasonable interest rate. The following data comes from Experian:
This data emphasizes the fact that lower APRs are available for new car loans. In 2017, Experian reported that vehicle loans for customers with scores under 600 accounted for around 20% of all auto loans. A small percentage of borrowers also had scores lower than 500 and were still able to qualify for a car loan. That means that even if you have a subprime credit rating, it is possible to qualify for a used or new car loan.
What is the catch? With a lower credit score, you will not qualify for the same low interest rates as customers with high credit scores. But as you know, the fact that you are shopping for a new car and not a used car plays to your advantage. That means that if you apply for a car loan through a competitive lender, even with a low score, you may still qualify for affordable rates. This is even more likely if you can prove that your income can support your auto loan payments and that you are unlikely to default on your loan in the future.
Will you need to put up collateral for your new car loan with bad credit? That depends on the lender you choose as well as other factors which determine your eligibility for a new auto loan. While getting a co-signer with superior credit can also help you qualify for more competitive rates, it is not necessary in order to receive car loan offers.
Where to Apply for an Affordable New Car Loan Now
If you want to qualify for an affordable auto loan with bad credit and no collateral, you will have the best chance of doing so if you apply for your car loan online. By doing so, you can receive offers from a large network of lenders, many of which specialize in auto loans for customers with subprime credit. It takes only a few minutes to apply. You could be getting the keys to your new car sooner than you imagine.