I have a low down payment; can my LDP be enough to get me my next car loan?

Get Approved for Your Low Down Payment Car Loan before You Walk into the Car Dealership / Apply Here

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If you're in the market for a car, and want to get a car loan but you have bad or no credit, don't give up hope. In particular, if you have a bit of money saved up to use as a down payment, then this article - which centers on low down payment car loans - is for you.

Below, we'll discuss some of your options to consider that will help you get into a car. Even if you've filed for bankruptcy, there are still options available to you.

Right out of the gate, we'd like to advice those that have particularly damaged credit that they might have better luck getting approved faster for a loan on used cars, rather than on new cars. We're not saying you won't be approved for a new car loan, just that the process for approval on a used car will generally be easier and faster. And there are many car manufactures out there that have a reputation of reliability: finding a quality used Toyota, Nissan or Ford won't be a problem.

Back on the subject of your down payment. If you're concerned that your low down payment won't be enough to get approved for a car loan, don't. The fact is, there are many lenders out there - particularly on the internet - that will approve your car loan without a down payment at all. However, know that having any degree of a down payment will improve your chances of getting approved, since you'll be building equity against the vehicle.

As well, you can find many used car dealerships across the four corners of the country - from Florida, Michigan, Georgia, North Carolina, South Carolina, Texas, and others) that will be more than happy if you walked in with any level of a down payment. Trust us, a down payment, no matter the amount, will only work for you, not against you.

Major Midwest cities, like Cincinnati, Pittsburgh, and Kansas City are known for having a number of quality and reputable used car dealerships. Even less traveled cities, like Huntsville and Springfield will probably have what you're looking for.

If you do decide to visit a used car dealership, ask whether they require a down payment, and if there's a set minimum. If there is, and it exceeds what you have, tell them that to see if they'll be flexible at all. If they are willing to cut you some slack, ask some other pertinent questions.

Remember to be prepared before you visit dealerships: know the kind of cars you're considering, what their invoice prices are, and how much you're able to pay as a monthly payment (and don't forget to include the cost of mandatory auto insurance, which you have to include in your equation.)

If a dealership's financing department lets you know what kind of monthly payment you can expect, ask him or her to break it down for you. How much of that monthly is applied to your principal loan amount? How much is interest? How about other financing fees?