Used Cars with No Money Down

Purchasing a used car can be a good way to improve your credit score as you repay your loan. A used car can also provide reliable transportation for yourself and your family when they need to get to work or school. However, is it possible to get used cars with no money down?

Purchasing Used Cars With No Money Down in Ontario

If you have bad credit, you may want to consider putting money down to increase the odds that you are approved for an auto loan. Fortunately, a failure to put money down on a used car doesn't mean that you can't get the loan that you need to buy a used car. Unfortunately, you should be prepared to get a loan that may take 72 months or longer to repay.

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Your Monthly Payment May Be Higher

Borrowers who don't want to take 72 months to pay for a car will have to make larger payments to pay back the loan faster. Although this allows you to pay less interest over the life of the loan, you have to ask yourself how much you can afford. If you can only afford to pay $100 a month, you are limiting yourself to a $5,000 car if you want to pay in 60 months or fewer.

Those With Bad Credit May Pay A Higher Interest Rate

Many lenders are not going to want to take a significant risk by approving used cars in Ontario on someone who has failed to repay loans in the past. Therefore, they will compensate for this extra risk by charging a higher interest rate. In some cases, you may need to pay an interest rate of 10 percent or more if you don't have a down payment. The good news is that you can always refinance in the future. For some people, it may be easier to deal with a higher interest rate now while planning to refinance the loan to a lower interest rate in the future.

Not having a down payment for poor credit history auto loan programs will keep money in your bank account when you purchase your car. The downside is that you may have to pay more per month or deal with a higher interest rate. This is because you will be asking for more money without any guarantee that you can repay that money. If you are willing to pay that extra money, finding a car loan that works for you will be no problem. In any situation though we here at OntarioCarsOnCredit.com want to make sure that you find a deal you are happy with. We will make sure to do our best in getting you the loan that you need and deserve right here, right now.