Next to buying a home, most people’s largest purchase will be a car and finding 0% auto loans should be the goal. Similar to when purchasing a home, the buyers monthly payment is significantly affected by the interest rate they receive. Also like buying a home, the interest rate you receive is impacted significantly by your credit score. Getting a low interest loan for those with good credit is easy, but for those with bad credit, getting a reasonable interest rate on an auto loan is very difficult. The following article will give you tips on how to get 0% auto loans with bad credit.
The first tip in getting a low rate car loan with bad credit is to consult with your auto dealer. Due to the poor economy, and with the governments cash for clunkers program over, many national auto dealers are providing 0% auto loans to car buyer to entice them to purchase through their dealerships. Normally, zero percent loans are not available for individuals with bad credit, but in today’s marketplace, the auto industry is a buyer’s market. It doesn’t hurt to ask for zero percent financing through the auto dealers finance group. They know that you will be willing to walk away without a low car loan interest rate. In most situations, they will be willing to negotiate with you just to ensure that you buy a car through them. In some situations, the auto dealer will offer you a discount on the purchase price in lieu of a low rate car loan.
The next tip on how to get 0% auto loans is to shop around. Most banks offer auto loans to their customers. While, they normally will not give 0% auto loans, they may be willing to negotiate with you to get the lowest rate on your bad credit car loan. Car loan lenders may require you to open up checking accounts with their bank and have the auto loan payment directly deducted from your checking account each month.
The last tip on how to get 0% auto loans is to make yourself less of a lending risk. Most car loan lenders will require less than 5% down on the car loan purchase price, but the more you put down on the car loan purchase, the less of a risk you are to the car loan lender. Especially with bad credit car loans, the less of a risk you are, the lower your car loan interest rate will be.
In conclusion, to get 0% auto loans with bad credit you should first negotiate with the auto dealer, then if that doesn’t work negotiate with your bank, and make yourself less of a lending risk by putting a higher amount down when purchasing the car.