For most of us, our cars are an essential part of our lives. There is no easy way to replace the role of a car in our lives when we cannot afford a car. Other modes of transportation such as bicycles, trains, buses, taxis and subways can all serve in a pinch, but on a day-to-day basis they are no good substitute for owning a car.The most frustrating situation, however, is when you have the monthly income to be able to afford car payments but cannot seem to get approved for an auto loan. The two most common reasons for being rejected for an auto loan are:a. not having the money for a down paymentb. having a bad credit scoreThe reason why most drivers with a bad credit score and no ready down payment have trouble getting accepted for a car loan is NOT just because they have these two red marks against them. Sure, that’s part of it. But, the real reason for all of the application rejections is because they are going about shopping for a loan the wrong way.Looking for 0% down auto loans for bad credit drivers does not have to be a pain in the neck. Here are answers to 3 frequently asked questions about 0% down auto loans:1. Why do auto lenders prefer that you come up with a down payment?A: Put yourself in the shoes of an auto lender for a moment. You are asking them to consider basically giving you a whole lot of money to do with what you like (in this case, to buy a car). And, they need some sort of assurance that you are actually going to pay them back.One way that lenders assess their level of lending risk, of course, is by reviewing the borrower’s credit (FICO) score. But, another way is by looking at how much money the borrower is willing to put up of their own money for the purchase. Basically, the more the borrower can come up with, the less risk the lender is taking in case of a possible future loan default.2. Apart from a down payment, what else can I do to improve my chances of getting approved for a car loan?A: If you are unable to come up with a down payment, you have other options to offset the lender’s risk. One such option is by choosing a less-expensive car to buy. The smaller the loan amount, the less risk the lender faces.3. What is the secret to shopping for the best rates and improve chances of loan approval?A: To shop for the best rates and improve your chances of loan approval, make sure that you are only applying to “bad credit auto lenders.” In fact, you should be applying to at least 5 of them online before you visit any auto dealerships to shop for a car. When you do, make sure to reject the first offer you get from each one. Find out the best offer each is willing to give you before you sign on the dotted line.Consider the answers to these 3 frequently asked questions in order to find the right auto loan deal, even if you have no down payment and a low credit score.
0% Down Auto Loans For Bad Credit Drivers – 3 Frequently Asked Questions
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