The pros and cons of buying a car with no money down
Buying a car with no down payment can sound appealing, especially if you want to get behind the wheel without saving for a long time. At Jeff Wyler Nissan of Louisville in Louisville, KY, it's possible to buy a vehicle from our new, used or certified inventory with no upfront costs, but it's important to be aware of how it can affect your finances. Here's how a no money down financing plan can work along with some of the advantages and disadvantages to consider before you move ahead.
How a No Down Payment car financing plan can work
When you buy a car with no down payment, you're financing the entire purchase price, including the taxes, registration fees, and other related costs. As a result, you're borrowing more money, which will lead to higher monthly payments and, usually, higher interest rates. Lenders will evaluate your ability to repay based on the level of your income and your current debt.
We recommend that Jeffersontown, KY buyers get a less expensive car from our used inventory, rather than our new inventory, because that can increase your chances of qualifying for no money down financing. One of the specialists in our finance center can help you decide whether a no money down financing package is the right decision for you.
The benefits of doing a no money down car loan or lease
The most obvious benefit is that a La Grange, KY buyer gets immediate access to a vehicle. Buying a car with No Down Payment is helpful if you urgently need a vehicle in order to work and to help pay down your debts. Buying with no money down helps you preserve cash for other expenses like buying a home or for unexpected emergencies. It's also a chance for you to build your credit by making consistent payments on time, which can raise your credit score. We encourage you to submit our online credit application to get approved for a loan from your home in Middletown, KY.
The drawbacks of getting a no money down car loan or lease
When you buy a car with no money down, your monthly payments will be higher. That's because you're financing the entire cost of the vehicle, and those higher payments can put a big strain on your budget. What's more, lenders will typically charge higher interest rates for no money down financing and that will cost you more. In addition, there's a very real risk of a St. Matthews, KY buyer having negative equity, or being "upside down" on the loan. Because cars depreciate rapidly, you're more likely to owe more than the car is worth and that's not good for your financial health.
Tips for getting approved for no money down car financing
If you want to buy a car without making a down payment, there are several things you can do to increase the chances of being successful. One is to improve your credit score. Try to pay down your debts and make your payments on time because that helps raise your credit score, which can lead to lower interest rates. Trade-in your current car to dramatically reduce the amount of money you have to borrow, which makes it easier to qualify for no money down financing.
We can tell you more
It's important to consider the pros and cons of a no money down car loan before you take that step. It might seem more convenient, but the increased monthly payments can be a big burden that you might regret later on. Then again, in certain situations, it might be a viable short term strategy. Please contact us and let's talk about your financing options at Jeff Wyler Nissan of Louisville in Louisville, KY.
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Jeff Wyler Nissan of Louisville
4136 Shelbyville Rd.
Louisville, KY 40207
- Sales: 502-485-5686
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