Can I finance a car without giving a down payment.?

that all depends on your credit score.

Yes with good credit, credit unions have those specials all the time..

I wasn’t going to answer until I read Christie answer; she’s so wrong it not funny.

If you buy a car without a down payment, new or used, you’re going to be upside-down as soon as you leave the lot. Now it really won’t matter if you’re upside-down as long as the car isn’t totaled. If it is you’ll be making payments on a car you can’t drive or may not even have. (If your insurance company totals the car, they’ll take what’s left and sell it to recover their money) Now let’s say you bought a new car for 20.000 no down payment and as soon as you leave the lot, you’re going to lose between 15 and 25% of it value right away, so now you’re upside down by 3,000 to 5,000. Do you have the money to pay the bank off if you’re unlucky enough to total the car?

Really, if you don’t have a down payment of 15% or so you can’t afford the car.

If you really want to keep out of trouble here’s a few simple rules:

First: put down at least 15% down. Notice I said at least, if you can pay cash for the car do it.

Second: Finance no longer then three years for a used car, four for a new. If you have to go out farther then that you can’t afford it. Go shorter if you can.

Third: Keep your car a long time, and keep making payments after the car is payoff. Just put the money in a savings account.

If you keep your car for say eight years, and you finance for four, and save for four, you can pay CASH for your next car, and in another eight years, you can by a car that is twice as expensive as your first car and pay cash for it or you could buy new every four years and pay cash. The dealership will hate you they make a lot of money when you finance a car.

.Also once the car is old enough you won’t need collision insurance, so you’ll be putting even more money in the bank. I drop collision after the car is worth less the 5,000, but you’ll need to decide when to drop it.

And, yes I’m aware that you can get insurance that will cover the difference between what the car is worth and what you owe on it, but insurance companies are in business to make money, who do you think comes out ahead on that deal?

Now I have bought ONE new car in my life, financed for three years, thank you. It wasn’t the nicest car on the lot and I kept it 11 years until it died. (It dropped a valve and ruined the engine, otherwise I’d still be driving it..) Every other car I bought after that was used; I let someone else take the hit on deprecation. Have the car or truck checked out by someone you trust before you buy.

Too many people are payment shoppers, and car companies know it. I recently saw where you could finance a car for 10 years! If you have to go that far out to buy a car, you can’t afford it.

The other big problem with being upside down is that if you trade the car off before you are right side up; you start out in even a deeper hole.

So buy what you can afford, who cares if your friends have a nicer car? After all in a few years when they are struggling with car payments, and house payments or rent, you’ll only have a house payment or rent to deal with. Trust me, the fewer payments you have the better off you are.

By the way I keep my cars until they are no longer reliable, then I get rid of them. So I tend to keep my cars at least 10 years. That makes the car about 15 years old before I get rid of it.

Have never put money down on a new car, Out of equity yes but that is true with any new car, pay an extra $10-$20 a month on your payments it goes a long way into getting equity. Both my kids purchased a new car without money down, nice thing with a new car is if it breaks down it is under warranty myself would rather pay the extra per month than have a car break down and these days have to pay for the repair.

Auto finance is what I do for a living and auto loans are based on the following factors;

1. LTV (loan to value).
2. Term requested.
3. Age of vehicle.
4. Miles on vehicle.
5. Down payment.
6. Time on job.
7. Time at residence.
8. Monthly income before taxes.
9. Credit score/profile.
10. Total debt to income ratio.

As long as the above factors are within the lenders guidelines, you should be able to be approved without a down payment.

yes , but its not too smart

I'm 22 and I've bought 2 new cars without down payments. If you have good credit, there should be no need.... My parents told me to never put a down payment because the sales person receives a good chunk of that money. I don't know if that's true or not, but I do know for every $1,000 it only brings the payments down about $20. The dealership will try to make it seem like you have to put money down or else you cant get the car, but I negotiated my way from a $500+ payment to $300 for a $19,000+ car. Just let them know that you will go to another dealership and then they will lower the payments!!! Good luck...

sure you can. It will depend mostly on your credit score though. and don't forget, your payments will be higher w/o a down payment.

This depends on TWO factors.

A.) Credit.

B.) Percentage of book value (or invoice) financed.

Yes... but its not too smart.

Buy a CHEAP car!

Probably, and my advice is to put down as little money as possible. With an item that depreciates in value, such as a car, it's not wise to make a big down-payment. Save that money for a down-payment on a house.

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