No Money Down Car Loans for Bad Credit – 2023

Owning a car is essential unless you live in a city where you can actually rely on public transportation. However, investing in a trusted vehicle is not cheap.

How Can I Get a Car with Bad Credit and No Money Down? | No Money Down Car Loans for Bad Credit 

Most buyers of new cars are troubled from doing so by two factors. Either they have poor credit, or they are not able to make a down payment. Additionally, for some customers, it combines the two.

Thankfully, some financial institutions are willing to grant auto loans to people with bad credit. Here are the top five no down payment auto loans for people with bad credit.

No Money Down Car Loans for Bad Credit in 2023

Who Can Qualify for Zero Down?

  • For those without a credit rating, at least one year with the same employer is required.
  • For those who have some credit history, at least two years of employment history is required.
  • $1500.00 minimum gross monthly income.
  • It’s possible, but not always necessary, to put down money.
  • No recent repossessions, unless they were a part of a bankruptcy.
  • No purchases for motorcycles or private events.
  • must be resident of the United States or Canada.

Top 5 Bad Credit Auto Loans

Capital One

One of the biggest banks in the country, Capital One, offers rates that are comparable to those of other sizable lenders. Although it requires a monthly income of at least $1,500, the lender takes all forms of credit into consideration.

For lenders with a bad credit history and no down payment, Carvana provides fast approval. Additionally, applying for a car loan online is simple, and you might be approved in as little as 48 hours.

Here are some specifics regarding Capital One auto loans:

  • consumers with all credit scores who closed a loan with Capital One an average APR of 7.02%.
  • Loan durations of up to 72 months
  • loans beginning at $4,000
  • Model years of vehicles must be 2010 or later and have fewer than 120,000 miles on them; in some cases, a car may be 2008 or later and have fewer than 150,000 miles.


Online auto dealer Carvana also acts as a broker for auto loans. They provide convenience similar to a dealership, allowing you to find your car and your auto loan in one location, all online. They do not set a minimum credit score requirement, but they do demand that clients be free of open financial crises and earn at least $4,000 annually. The fact that Carvana financing is only available for Carvana vehicles is another restriction. A loan offer from Carvana cannot be used at another dealership.

To understand more about Carvana auto loans, read on:

  • Consumers who closed a loan through Carvana Loan terms up to 72 months experienced an average APR of 12.88%.
  • For 45 days, car loan offers are valid, giving you time to decide.
  • The option to add a co-signer to a Carvana loan is available to borrowers.

Auto Credit Express

More than 1,200 car dealers and lenders are accessible to you through the online marketplace Auto Credit Express. Borrowers with bad credit can get auto financing on both new and used cars from these lenders. Even bankruptcy-related borrowers will be accepted by the business.

To find out how much you might be accepted for, use the company’s Auto Loan Estimator. From there, you can call or submit an online application.

  • APR ranged from 3.99% to 29.99% for customers with all credit ratings who closed a loan with Auto Credit Express.
  • full-time employment and a monthly income of at least $1,500.
  • Those with bad credit must earn $1500 per month to be eligible.

A lending marketplace called can connect you with subprime lenders. They will work with subprime borrowers and have no minimum credit score requirements. Through, you can purchase, lease, or rent a new or used vehicle.

You’ll start by following the four-step process provided by the business. The company will match you with a lender or dealership after you submit an online application. After selecting the vehicle that best suits your requirements, you can drive off in your new vehicle once your application has been approved.

  • The age requirement to apply is 18.
  • Payments that are reasonable and free of application fees.
  • You must be an American citizen.

This online auto loan provider offers loans for both new and used cars. When you apply for a bad credit auto loan through, a wide network of subprime lenders who are willing to assist you in finding financing is automatically connected to you.

Up to four loan offers can be obtained quickly, and if your application is accepted, you can receive your loan certificate online in 24 hours or less. To accommodate any financial situation, it offers options for monthly payments and financing terms. Examine the various auto financing options before deciding which might be suitable for you.

  • Each lender has different eligibility norms. However, generally speaking, in order to be eligible for a loan, you must be at least 18 years old, have a FICO score of at least 575, and make a minimum of $21,000 per year ($18,000 for refinance loans).
  • The vehicle can’t be older than ten years.
  • Hawaii and Alaska residents are not eligible to borrow.

How to negotiate for a no money down car loans for bad credit

You could use practice to show that you have good enough credit to qualify for a zero-down auto loan if a lender said it needs a down payment or that the APR is too high for you. These consist of:

  • Stable employment: If you’ve held a job for at least a year, that demonstrates job stability.
  • Great income: The lender is more likely to consider you capable of making auto loan payments if your income is higher.
  • Credible residence: Stability can be demonstrated if you have lived in the same place for a year or longer.
  • Credit history: Even if your credit isn’t very good, repaying a past loan on time could be a big plus.
  • Low debt: If you have few other loans that are still unpaid, such as student loans, or if your other debts, like rent, are small in comparison to your income, that may indicate that you will find it easier to pay back a car loan.
  • Personal bank account: You may need a bank account to set up automatic payments with some lenders, which may result in rate discounts.

These arguments can be made directly to a lender or a salesperson at a dealership. Before visiting the dealership, it’s always a good idea to look around for a preapproved auto loan.

Tips for Approval with No Money Down car loans | Tips For buying a car with bad credit and no money down 

As you would when buying a car, compare no money down auto loans. Never be worried to explain to the dealer or the lender why you deserve credit. To get a better offer, compare loan offers. Determine the value of the car you want, and don’t pay more than that. Take advantage of a trade-in.

We’ve covered a number of things you should keep in mind as you look for no-money-down auto loans, but here are a few more suggestions:

  • Considering a co-signer:  Your chances of getting approved for a car loan with no down payment could be greatly increased by having a co-signer, particularly if that co-signer has a stable job and good credit.
  • Make sure the vehicle you choose is durable: you don’t want it to stop functioning before the loan is repaid. Additionally, you don’t want to have to pay for repairs while you are still paying for your car. You can find information on how to steer clear of lemon cars.
  • In addition to monthly costs, consider the overall cost: Do your best to borrow money for the shortest loan period you can manage. If you have no trouble making the payments on a 60-month loan, don’t take out an 84-month loan because the total cost of the longer loan—which is money out of your pocket—will be much higher.
  • Bypass “buy-here, pay-here” stores: stores: In most cases, no-money-down auto loans from used car lots that offer to finance you themselves come with high interest rates. Your loan could be increased by thousands of dollars if they make you purchase additional items.


How can I get a car with no down payment?

If you possess good credit, a trade-in with good credit, or you can get a good deal on the car you’re buying, you might be able to purchase a car with no down payment.

Can I get a car loan with a 500-credit score?

With a credit score of 500, you might be qualified for a car loan. A co-signer and a down payment are two significant things that could be helpful.

What credit score is needed to buy a car with no money down?

Usually, the better, the higher your credit score.

Can You Get an Auto Loan with Bad Credit and No Money Down?

Yes, it is possible to buy a car with bad credit and no down payment. However, you might be faced with a higher interest rate and a smaller choice of vehicles if you have fair to very poor credit.

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