An overview of our no money down loan and lease program
If you don't have enough money for a down payment on a Honda from our new inventory or one from our certified inventory, you may be able to finance a car with no money down. It's part of our no money down loan and lease program at Jeff Wyler Honda of Colerain in Cincinnati, OH. Here's how this program works and some implications to consider before you exercise this option.
What's the usual down payment required on a car?
Lenders typically require at least 20% of the purchase price if you're buying a new car like a Honda Accord or Honda Civic, and about 10% if you're buying a car from our used inventory. But our customers in communities like Fairfield, OH can buy with a lower down payment or even nothing at all, depending on their circumstances. In the past few years, car prices have skyrocketed, which means the down payment on a new or used car can range from about $2500 up to nearly $10,000. That's why our no money down program can be appealing for many Hamilton, OH buyers.
Some ways to buy a car with no money down
If you have good or excellent credit and a history of making car payments on time, you probably won't be required to make a down payment. Borrowers with a lower credit score and no history of on-time payments are more likely to have a down payment requirement because lenders consider them to be at higher risk of defaulting. One good way to qualify for our no money down program is to choose a less expensive used car. That will reduce your risk to the lender and might help you secure a no money down loan, or at least lower the amount of the down payment that's required.
Another good approach is to take advantage of your car's trade-in value. After all, a down payment doesn't have to consist of nothing but cash. It can include the value of your trade-in or it can even be the trade-in value only. If possible, you can delay your purchase and keep driving the car you have now. That will allow you to save up enough for a down payment. There's a lot to be said for submitting our online credit application to get approved for credit from your home in Dayton, OH.
The downsides of buying a car with no money down
When you buy a car without making a down payment, it may be less expensive up front, but it can cause ongoing effects that ca cost you more in the long run. The less money you put down, the more you have to borrow and that means you'll be paying a higher interest rate. The combination of a higher loan amount and a higher interest rate will result in more expensive monthly car payments.
You might be tempted to stretch out the loan term to six or seven years, but that puts you at risk of getting "upside-down" on the loan. That means you would owe more on the car than it's worth, especially as the car depreciates while your loan amount remains the same. One of the specialists in our finance center can listen to your financial situation and help you decide whether a no money down loan or lease is the right step to take.
We can help you buy a car with little or no money down
At our dealership, we are provide a number of options to our valued customers, regardless of your financial situation. We invite you to contact us any time to get more information on how to finance your next new or used car purchase.
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Jeff Wyler Honda of Colerain
8950 Colerain Ave
Cincinnati, OH 45251
- Sales: (513) 823-9177
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