Is "0" Down Possible On An Auto Loan?

[Lexdiamonds]

Hey guys, is it possible to put no money down on a loan? For example, $29,000 over 72 monthes. Or do you always have to put something down. I have been calling places and they are giving me all kinds of answers. Assuming i have great credit. Thanks in advance.

[blue06gs]

Hey guys, is it possible to put no money down on a loan? For example, $29,000 over 72 monthes. Or do you always have to put something down. I have been calling places and they are giving me all kinds of answers. Assuming i have great credit. Thanks in advance.

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its always possible to put $0 down, however you'll probably get a higher interest rate meaning higher montly payment.

[perm269]

Most places will give you the option to put nothing down...however, you need to remember that you will be upside down on this loan (meaning you owe more than it is worth) throughout most of the life of the loan (assuming 72 month tenor)...

There is nothing wrong with this, but some lenders will require gap insurance (insuring the difference between the loan value and the value of the car) which will add to financing costs. In addition, if you are going to be upside down you will want to hold onto the car for at least 5 yrs (so that you will at least be at breakeven)...given that this is a Lexus forum, we all love the cars, so keeping it 5+ years is not really a problem... :D

Happy Hunting!

[lexus411]

with excellent credit the bank will finance up to 110% of MSRP . Meaning on a $30,000 you can finance up to $33,000. Better of on those terms to try a 48 month lease or balloon.

[Lexdiamonds]

Lex411, are you saying that it is better to lease the GS rather than going with a 72 month loan. I didn't really understand? Sorry, i am not real good with numbers. lol. The part that bothers me with the lease is i will have to put almost 2500 out of pocket, but on the other hand it will be a new car. If i take out a 72 month loan on a 3 year old GS, how high do you think my interest rate will be with teir 1 credit, out of NJ.

[huskydog]

I finance cars all the time with no money down. Usually I roll the tax into the loan as well. So you can do it with no problem. At some point in time [usually bonus time] I always put money down and refinance or as someone said expect to be upside down for the life of the loan. A 72 month loan on any vehicle is a bad idea in my opinion, the amount of interest paid is way too high. A lease may be your better option. Find a good credit union if you can they usually have the best rates. Example from my credit union:

2005 and Newer up to $125,000 up to 36 mos. 4.60%

2005 and newer up to $125,000 37-63 mos. 4.95%

2005 and Newer $20,000-$125,000 64-72 mos. 5.95%

2004 up to $125,000 up to 63 mos. 5.10%

2004 $20,000-$125,000 64-72 mos. 6.10%

2003 up to $125,000 up to 63 mos. 5.20%

2003 $20,000-$125,000 64-72 mos. 6.30%

2002 up to $125,000 up to 63 mos. 5.39%

2002 $20,000-$125,000 64-72 mos. 6.49%

2001 up to $125,000 up to 63 mos. 5.59%

2000 and older up to $125,000 up to 48 mos. 5.89%

[Lexdiamonds]

Those are pretty good rates, so it shouldn't be over 7.5% if i have good credit. Thanks for the information, I appreciate it.

[joey8675]

Lex411, are you saying that it is better to lease the GS rather than going with a 72 month loan. I didn't really understand? Sorry, i am not real good with numbers. lol. The part that bothers me with the lease is i will have to put almost 2500 out of pocket, but on the other hand it will be a new car. If i take out a 72 month loan on a 3 year old GS, how high do you think my interest rate will be with teir 1 credit, out of NJ.

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As an FYI you can always put 0 down on a lease. They will bake the costs into the your payments (only thing you may have to pay is first month)

[lexus411]

those are credit union rates which tend to be lower. The rates for auto loans are creeping up in the 6% area for up to 60 months and usually about 1% higher for a 72 month term. If you take a 4year lease or balloon you payment will be almost half and you can re-evaluate buying it in 4 years. Odds are you will have the bug to get a new car by then and you wont be saddled down with negative equity as you would from buying it. Didnt realize it was pre-owned. I would save up enough to cover the sales tax at the very least. And if available purchase gap insurance. This will cover the difference if the cars is totaled and you owe $29,000+a few thousand in tax and interest. and the insurance co. only wants to pay the book value.

[new big400]

I have never put anything down on a car loan.typically every 1k you put down it lowers your payment 20 bucks a month.This would be the case on a 48-60 mo. loan not on a 72.This means if you put 5k youre payment would be $100 a month cheaper on a 60 mo. loan.Id personally rather keep the 5k and pay $100 more a mo.If youre buying used get a good deal,Dont put anything down and go with a shorter length loan and youll be fine.Id steer clear of a 72 mo. loan Thats a long time to finance a new car let alone a used car Thats where youll get into probs.Such as having to put money down,higher interest rates,neg equity.Thats my 2 cents and if you do decide to bite the bullet and bury yourself buy gap insurance.