If you want to buy a car but don't have one money to use as a deposit, know that there is a type of financing that can help you a lot.
THE car financing without down payment It is a great solution for those who need to buy a car urgently, but do not have money. These financing options are known for offering credit to the customer to purchase the car.
How does no-down-payment car financing work?
THE car financing without down payment, unlike conventional financing on the market, the customer can divide the total value of the car into several installments, making it possible to buy the vehicle without paying a sum right at the beginning.
However, this type of financing, can be considered the most expensive on the market, because despite not charging a deposit, the installments and interest can be more expensive.
To make a car financing without down payment, simply choose a store or dealership of your choice. Then, choose the bank where you will finance the financing. However, depending on some financial institutions, the customer must have a credit score to be able to finance the financing.
After that, the customer must choose the type of financing, for example, if it will be Leasing, Consortium or CDC.
What are the types of car financing without a down payment?
Leasing
THE Leasing It is a type of financing in which the customer buys the car and can start using it normally, but this asset remains in the name of the financial institution until the customer completes the payment of the financing. It is as if the car was rented by the bank.
Consortium
Node consortium, although the customer can buy a car without a down payment, the car can only be used by the customer after the consortium ends or if he is selected during a draw.
In a consortium, there are different types of customers divided into groups according to the value of the consortium, within these groups there is a draw in which one of the winners can get the car keys before finishing the payment.
Direct Consumer Credit (CDC)
In this type of financing without deposit, the customer gets credit to buy the car, but needs to commit and pay the installments correctly. Considered one of the most common types of car financing without down payment.
Is it worth taking out a loan without a down payment?
THE car financing without down payment, can be a good option for those who need to buy a car, but do not have a cash deposit.
However, you need to be careful, because as we mentioned earlier, a financing without deposit because it has higher rates than a conventional one. For this reason, before opting for this type of financing, check that it will not harm your budget.