No Money Down
Auto Loans

Who Qualifies and
Where to Apply!

Is it possible to get no money down auto loans with bad credit? The simple answer is yes. The slightly more complicated answer is yes and/or no. So who does a no money down auto loan work for and who does it not?

There are really three key credit factors that are going to determine whether or not you will qualify for no down payment...

1. Credit Depth


  • You have past credit.
  • You have more than a five year credit history.
  • You are a homeowner with few or no late payments.
  • You have a strong cosigner.  Does not mean you need one, but it helps.
  • You have three or more non delinquent accounts that you are currently paying on.
  • You have car credit that was paid over a two year period or more, even if it was paid a little slow from time to time.

If this sounds like your situation, then you are definitely qualified for no money down auto loans.


  • Your credit score is below a 520.
  • You have file for multiple bankruptcies.
  • You have less than two years credit history.
  • You have no credit, with or without minor collections.
  • You are currently 30 days, or more, late on your mortgage payment.
  • You have had a repossession within the last two years, or had multiple.
  • Your credit is middle of the road and you want to buy a second vehicle.
  • You are currently 30 days, or more, late on your current vehicles payments.
  • You have filed bankruptcy in the last two years and have not reestablished with any new credit.
  • Your credit isn't the greatest and you want to trade a vehicle with a lot of negative equity.

Don't worry if you've found that one or more of the negatives above applies to you. You may still qualify for a no money down auto loan, but you'll just need to know where to apply.

Trust me, I arrange financing for customers with bad credit and no money down on a regular basis...It is still possible to get approved for auto loans.

In my line of work, I find that it's not so much the credit rating of the customer that dictates whether or not they will need to pony up some cash, but massive negative equity from a trade in.

So don't let a poor credit history deter you.

2. Ability

Ability is simply the ability to pay. Can you afford the payments, by bank standards? The more maxed out you appear to be the higher the likelihood the bank will want to see a larger commitment from you in the form of down payment.

Banks are all about avoiding risk and they like to have equitable positions in vehicles, in the event they have to repossess them in the future.

3. Stability

Again, this is all about risk.

  • Do you bounce from job to job?
  • Are you frequently unemployed throughout the year, i.e. seasonal job, construction, etc.?

Someone that has lived in 12 different cities, with 12 different jobs over the last 12 months will be more likely to have to put money down then someone with a 5 year job and 5 years at the same residence.

There is ultimately only one way to know for sure what you will qualify for and that is to simply apply for a no obligation auto loan quote with Auto Credit Express�. Their service has closed over a Billion dollars in online bad credit auto loans!

To Sum This Up

One thing to keep in mind if you do qualify for no money down auto loans (especially true for bad credit customers) is that your choice of vehicles may be limited. If you go in with no money, you may have no options...Or very few at best!

If you can save up $500 (borrow it if you have to), $1000 or more, then you will have more options. Keep in mind that down payment doesn't always have to come in the form of cash. If you have a trade in that has equity (worth more than you owe, or paid off), then that will usually be just as good as cash.

The deeper your credit Depth, the better your Ability and the stronger your Stability the greater the chance you will qualify for a no money down auto loan. If you can save up a decent down payment (whether you need one or not) it's well worth it, because you will have many more vehicles to choose from that you will qualify to buy.

Return from No Money Down Auto Loans to Bad Credit Auto Loans

Return to Insider Car Buying Tips home

Share this page:
Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.