Can a person get 0% car financing if they have bad credit but put down a big downpayment?

Question

I want to pay cash for a used car (15,000)...I have the $$, but I want to build more credit, and want a car loan so I can pay it off in just a couple payments.

Answer 1

That's a loaded question. You can, on paper, show 0% interest, when you're just paying the interest off out of the total profit from the car. Every major finance company I know of offering 0% insists that the buyer qualify for a certain tier level to get the rate, and with poor credit, you probably won't qualify. So the basic answer is this... a snake can show you 0% and you'd never know you just paid the 20% rate out of your big downpayment.

In addition, paying it off in less than a year really won't help your credit score that much. However, a cd for part of that $15,000 might earn you enough to offset some of your higher interest rate.

Answer 2

Yes you can get 0%. Your credit rating is just one of the factors in the equation. Time of employment, income, time at residence, and down payment are the other big factors. Most manufacturers are offering 0% on left over 06 model new cars now. If you have up to $15,000.00 to put down I am sure you could qualify.

Answer 3

FHA is NOT just for first time home buyers & not a bad credit loan. FHA is more tolerant of credit blips & the add ons to the rate are lower for low credit scores than Conventional. But it is NOT a bad credit loan. Also, FHA is 3% invested, not 5% down. That should change to 3.5% down after the first of the year. Wait a few months & your scores may increase if you pay everything from now on in a timely manner.

Answer 4

Probally not without a co-signer, but there are places that help people get cars that have cerdit issues look around but your interest will probaly be higher also. Good Luck

Answer 5

Ok great try different auto landers and compare their offerings... try this one http://www.carsloan.info