What's a No Money Down Loan or Lease All About?
One of the biggest hurdles to overcome when buying or leasing a car is having enough for a down payment. You might be able to drive off the lot without paying out any cash, but that's usually only an option if you have outstanding credit. Fortunately, our car dealership has some ways to buy a car from our new or used inventory or lease a car from our new inventory without a down payment.
But before you consider going that direction, it's important to know how these zero-down loan and lease options work, including the downsides and the inherent risks. It's also a good idea to submit our online credit application to find out what you can be qualified for. Meanwhile, here's a primer on our No Money Down Loan and Lease program at Jeff Wyler Superior Kia in Cincinnati, OH.
How a No Money Down Loan or Lease Works
An auto loan or lease nearly always requires a down payment on the car you'd like to finance. In the case of an auto loan, you will then pay for the car's remaining balance after subtracting the down payment. With a lease, you'll be paying for the pro-rated value of the car over the course of the lease contract, based on the projected depreciation by the end of the lease. The down payment will reduce the amount you have to pay with the lease, but with no down payment, that amount remains substantial.
How does a No Money Down Loan or Lease affect monthly payments?
When you don't make a down payment, the amount of money that needs to be financed with a loan or a lease is unchanged. As a result, you will have larger monthly loan or lease payments than you would if you paid that initial amount. Another factor to keep in mind is that a No Money Down loan or lease is considered a bigger risk for the lending or leasing company. That means you'll be paying a higher interest rate which will increase your monthly payments even more.
That's why it's so important to save up enough money to make a down payment, and get a less expensive car from our certified inventory, so that you can have monthly car payments that are within your budget. Nevertheless, our dealership does offer the opportunity to qualify for a No Money Down loan or lease and one of the specialists in our finance center can explain the details.
Some reasons to do a No Money Down car loan or lease
A No Money Down loan or lease lets you get the car you need for your job so you can earn enough to improve your financial situation, even when you don't have a down payment. A No Money Down loan or lease lets you hang onto the cash you have in your savings account, so can pay for an unexpected emergency.
Some downsides in doing a No Money Down deal
A No Money Down loan makes it more likely that you will be upside-down on the loan, which means you'll have a higher loan balance than your car is worth. That's going backwards financially and you want to avoid that if you possibly can.
How to qualify for a No Money Down loan or lease
If you still want to get a No Money Down deal, you'll usually need to have very good credit to be seriously considered. If your credit isn't solid, consider doing a trade-in with your current car. That will give you thousands of dollars' worth of value that can take the palce of a down payment. At Jeff Wyler Superior Kia in Cincinnati, OH, we can help you get a No Money Down loan or lease if it's really right for you.
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Jeff Wyler Kia of Colerain
9189 Colerain Avenue
Cincinnati, OH 45251
- Sales: (513) 472-2040
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