Bad Credit Car Loans – No Deposit Or Money Down?

When you approach a car dealership looking to get approved for a bad credit car loan, the issued of no deposit or no money down can be a real sore subject. Salesmen will most always ask you to put money down and the reasoning behind it never really seems to be clear. (Legit Lenders Here)

Do you need a down payment in order to get approved? It doesn’t seem likely that a lender will require a specific amount down just to get you approved for a car loan. While salesmen will argue that it’s showing an act of “commitment” on your part, it seems hardly logical.

The reason that a deposit or down payment is not needed is simply becuase of the way that finance managers in dealerships can arrange the numbers to reflect a down payment that doesn’t even exist. Simply by inflating the price of the car by $1000.00, then showing a “down payment” of $1000.00, doesn’t affect the bottom line a bit.

That’s how most every dealership moves the numbers around to show a lender that you have a cash down payment. Is it ethical? That’s for you to decide. It does happen everyday in car dealerships across the country.

So needing a down payment for a car loan really isn’t something that’s required by a lender. While a lender may see the sale price of the vehicle as being unreasonable, and thus not authorize the advancement of the full amount, there is no logical reason that a deposit (down payment) is a condition of an auto loan approval. Even with bad credit.