With more and more young adults getting denied credit it can be hard to find any kind of car new or used. As of right now about 18% of young adults are getting denied auto loans because of bad credit. That does stink and that can mean that the idea of 0 down cars for young people goes out the window.
What you should look at for a down payment on a used car
The nest thing you can do for buying a car anywhere is to save up your money and no I’m not talking just $100 you want to start at maybe $500 down for a used car or maybe more like $1000 for a down payment on a used vehicle.
The rules for auto loans are buckling down and you need to be ready for anything. You don’t have to pay cash for a used car but having a good amount of money for it will help that’s for sure.
One thing that most bankers will encourage you to do right out of the gate is to keep up on your credit score. This will help give you a clear picture of your finances.
Saving money is the name of the game in just about anything and if you can get a head start why not do it now.
0 down cars might sound nice
Yes buying a 0 down cars might sound nice and the car dealer will make it sound like he’s saving you a ton of money but when you go to read that contract look at how long the auto loan term will be and if it’s more then five years say NO.
That’s where car dealers get you is the longevity of the auto loan and the add-ons for the used car which you don’t need. The average length of holding on to a used car is about three to nine years.
So, in a nutshell, you want to be smart with the down payment options and never be scared to say NO. Yes the margins for used cars for a dealership are shrinking but a used car is never an investment it’s more of a trade-in.
The trouble with used car auto financing
If you are having trouble because of bad credit don’t jump at any dealership promotion. Work with a car dealer that’s suited to help you with bad credit, no credit, and even no money down used cars if that’s truly what you’re looking for.