Buying a car can be a huge deal, and for good reason. Considering how expensive cars ar e, one may need to either save for a while or rely on loans to get a car. Not just that, even for securing auto loans, one may first have to make a down payment for the car, which is usually around 20% of the selling price. Fortunately, one can find ways to avoid making a down payment.

1. Approach car dealerships
One of the simplest ways to find options for buying a car without a down payment is by checking with reputed dealerships. Car dealerships often offer deals to help buyers save money on their purchases. One of the most common offers is a car financing option with zero down payment. This means one would make the complete payment for their car in monthly installments. Based on the price of the car and the loan term opted by the buyer, the dealership can then offer a quote with their interest rate. 

Another way car dealerships can help is by offering special deals to buyers, helping them secure car loans without down payments. Here, they offer buyers an option to pay their down payment with a personal loan through the dealerships’ own or partner financing companies. For the remaining amount of the car, buyers can get a loan from their partnered banks or financial institutions. That’s why visiting dealerships to check if they have any such deals running can help. Also, dealerships often announce such offers for specific car brands and models. So, car buyers must consider choosing such models to save money.

2. Apply for a personal loan
Personal loans can be very flexible. One can apply for such loans for any required amount and use the money for anything they want . Another great feature of personal loans is that they do not require one to offer collateral. So, instead of going for car loans with big down payment requirements, one can apply for a personal loan and use the loan amount to buy their dream car. With a personal loan, one would not need to make down payments. But, one would have to pay the processing fees, which are not usually too high .

3. Look for zero-down payment loans
Many banks and financial institutions offer zero-down payment car loans. They are also called 100% financing loans, as one would pay the entire price of the car in monthly payments. But, it is important to note that one needs to have a good credit score to get approved for these bank loans. Also, to get the lowest interest rate, one can shop around and compare interest rates offered by multiple banks.

4. Sell an old car
If one owns an old car they have no use for anymore, they don’t need to worry about high down payments. One can trade the old car for a newer model. Also, if the old car is in good condition, it will fetch a good trade-in value, significantly reducing the new car’s purchase price. So, before taking it to the dealership, it is better to get the car checked by a mechanic and invest in repairs, cleanup, and replacements (if required) to improve the car’s condition. With this option, the old car’s trade-in value can act as the down payment for the new car.

5. Use a credit card
Credit card financing is another great way to purchase a new car without a down payment. Here, one would need to make the down payment on the car using their credit card. To repay this sum, one would also need to request the credit card company or the issuing bank to divide the total amount into monthly payments. This way, one would only be paying monthly installments for the down payment and the car price, making the overall transaction work like a 100% financing deal. But one would still have to do their research and check which dealers accept credit cards for down payments.

6. Consider private financing companies
In addition to banks, private financing companies may offer auto loans at low interest rates and with lenient down payment requirements. So, looking to buy a car without a down payment, one can approach a private financing company. But first, it is important to research and choose a credible and trustworthy financing company to avoid falling for scams.

7. Reach out to friends or family members
If one knows someone who can help them out, cover the down payment money, or lend some money for their new vehicle, one can ask them for assistance. One can request them to pay for the new vehicle. Then, they can come up with a monthly repayment plan to repay the loan. This way, one can avoid financial institutions, strict credit score and down payment requirements, and excessive paperwork.