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Auto Loans With No Money Down – How to Find the Best Deal

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Until recently, the only way to get a car loan – without a large amount of money to put down – was to visit your local bank and apply for a car loan. At most, a car loan from a dealer was possible, but few under $3,000. That was not very practical for a large purchase, not to mention, considering our interest rates were kept at such lows for long periods.

Sub-prime mortgage meltdown

But, not anymore. After months of rumors about the sub-prime mortgage meltdown, and the relative tightening of the credit markets, some lenders are beginning to create a vacillating market for auto loans. Yes, because the history of car loans has not been winning, and because the entire lending industry is in turmoil – everybody is fighting for business.

Car dealerships

Another result of the sub-prime meltdown is that car dealerships are having a change of hands. Instead of getting $75,000 to sell cars (as they were doing just a year ago), they are now selling all of their loans behind auto lenders specifically. These auto lenders are actively trying to sell as many loans as they can – hence the competition. After all, if you are likely to get a loan from a dealer and your credit is not great, then why not go with a lender who will give you a car loan?

Consumers who are attending car dealerships are getting deals, deals that can be hard to resist. Obviously, after years of struggling to pay off loans, and then getting dinged harder because of the higher interest rates and the added expense of higher interest rates and more costly car insurance, there is a lot of money spent on these high- Kickers. But, there is not much that they can do about the price. And let’s face it, cars have been getting ever more expensive by the day – so much so that the average car payment is higher today than when we bought the car in the early 1990s.

But, down at the very bottom, many dealers are working with customers on price negotiation, financing, and most of all, price negotiation specifically. Owners of newer vehicles who are very creditworthy and have solid income can get loans that are at rates comparable with those granted to them by traditional banks and lenders. It has been a brave new world. Read my latest post about how to choose the best online bank, today it is very actual.

While it is officially still a “brain these consumer’s”, taking advantage of today’s improved lending environment is not just a matter of being “cheap” as most traditional lenders seem to be doing. Many of the dealer’s loans were financed by one of the most familiar names in the lending industry – the ones you probably have heard of: A traditional bank. Dealerships have an option to work directly in-house with some of the most recognized and reputable lenders out there. And this is dramatically reducing the amount of time it takes to get your loan, get the value that the purchase is made at, and get your money where it should be in your pocket! You can find more useful information about car insurance from me here.