Do I need to have a down payment to get a car loan?

I want to take out a loan for a new car, but I’m concerned that I won’t be able to afford a down payment. Can I still get a car loan without a down payment?

Answer
It’s still possible to get a car loan without making a down payment. However, you might have to pay a higher interest rate.
There are many benefits to making a down payment on a car loan, including:
  • Paying less interest
  • Offsetting depreciation
  • Lower monthly payments
  • Bettering your chances of approval
Keep in mind that you will also have to purchase full coverage car insurance when you take out a car loan. You can quickly and easily find savings on full coverage insurance by comparison shopping with the Jerry app. Sign up for free to compare quotes from over 45 different providers.
Eric Schad
Answered on Nov 03, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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