Millennials nowadays dreamt of having that first set of wheels that would help defy them as successfully employed people. To achieve this goal, one needs money, lots of it.
Considering the cheapest sedan today in the market costs over half a million pesos, and it would be tough for young professionals who aren’t making enough money to reach one of their bucket lists.
Owning a car these days is not that hard for a working individual who earns enough for a car loan. Whether here or abroad, most banks help you finance your dream car if you will ultimately accomplish their car loan main requirements.
But how will one get to drive their dream car if you have difficulty paying for its down payment? Better not be sad because, in this article, we will learn and understand that not all car loans need to have a sum of money to pay for a down payment.
Acquiring Fast Car Loan Without Down Payment
The car loan system has significantly changed over time. Then, no one gets to drive a brand new car without paying for an initial amount. Now, a lot already experienced the privileged of driving their brand new vehicles without spending a single penny, paying for prepayment. Though most people enjoy the perks, one must understand that the lowest down payment you pay, the higher its monthly amortization.
However, the question is, It is worth it to take a car loan?. Let us now get into ways on how to acquire a fast car loan without a down payment.
Zero Downpayment Promos
One of the most convenient and common ways to take home your dream wheels without thinking of paying any upfront fee is the zero down payment promo. Fortunately, zero down payment car promos exist in the Philippines.
Therefore, you will not pay for the initial payment upon purchasing the vehicle you wish to take and drive home. However, some require their client to pay for the initial registration, chattel mortgage, and insurance. Remember that this kind of promo is uncertain and may involve the bank’s more challenging approval loan process.
However, if you wish to avail of the zero down payment promo, always dredge up and prepare that the car you wanted might not be available for the said promotion. Usually, car brands only select specific vehicles for the advertisement. So, if you wish to aim for the one you like the most, you might have to wait till the time they put it up on the list for the promo.
Credit Card for Car Loan
Using a credit card is another easy way to purchase that dream wheel without cutting off your savings to initial fees. I mean, why not if you have higher and enough credit limits that could buy your most significant investment in just a swipe.
However, the process may still need bank approval which the dealers could arrange. Moreover, this type of transaction is still not guaranteed, and not all dealerships accept this kind of car financing scheme. Aside from that, you can also study your minimum salary to approve your car loan.
Bank Financing for Car Loan
Bank financing is another communal means to get a car loan. Most people are relying on this type of car financing scheme. Although you will still pay for the unit’s down payment, the bank will directly finance the amount so you can buy a car instead of going through the dealership.
The total amount funded by the bank should be a series of monthly payments for the loan, depending on the agreement between you and the bank.
Usually, like the banks in the Philippines and lending companies let their debtors pay their loans between twelve (12) to sixty (60) months, subject to the borrowed sum. On the other hand, you still have to think about repaying the added interest to your loan.
Bank financing is also ideal in purchasing a car if you have already established good credit standing with your preferred bank. To qualify and secure bank approval, you need to have at least seven hundred (700) credit scores.
However, advantages and disadvantages are present in this type of arrangement. It has lower interest than any dealer financing, but the loan application process might need a lot of time and effort.
Co-signer
Considering a cosigner is another option if you wish to get out of the hurdles of paying a down payment. You might want to ask a friend or a family member with good credit standing to co-sign the purchase contract with you.
Somehow, this type could also save you from paying higher interest rates. Bear in mind that if someone agrees to co-sign the agreement with you, do not take it carelessly because the person agrees to share vast accountability of getting the loan approval for you.
Missing a payment during due dates may also lower the credit score of the cosigner. So if you desire to consider this way of having that car, you have to be diligent in your repayments to avoid conflicts and disagreements with your cosigner.
Even technically, they have no ownership in the vehicle purchased; they should feel that they still have the right. Otherwise, if it were not for them, you would not get to drive home your dream car.
Final Thoughts
One of the biggest hindrances in purchasing a car is the upfront payment needed. Still, you can own your investment with no down payment.
But we’d be thoughtless if we would not remind you to save up for a down payment to lower the amount you owe in principal and the monthly interest and amortizations. Call to mind that no down payment means higher and steeper interest rates.
Reading and researching a lot about Acquiring Fast Car Loan Without Down Payment will help you learn and understand about purchasing a car with no down payment. So do yourself a favor and start now if you have the vision of driving that car!
