maiden_girl wrote:A down payment isn't necessary under those circumstances but it is highly encouraged b/c it can significantly lower your monthly payments. The more you put down toward the purchase price is less you're financing...
A co-signing situation might require significantly more down if you don't qualify on your own.
+1
The only time a dealer REQUIRES downpayment it to offset risk. If you have a low credit score for example, you carry high risk to the lender. In order to offset this risk of a loss on the loan, the dealer needs to make sure for a large portion of time the loan value stays below the real sellable value of the vehicle. Hence the downpayment.
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Agreed. Most of the banks I've spoken with recently (Half a dozen or so banks and local credit unions) haven't said anything specifically about a downpayment. As for dealer financing, I'd assume this would be in the underwriting if you were a fringe candidate.
VW Auto seems to be very flexible with good rates, and pulls EX it would seem most of the time.
I forgot to add: A couple banks only finance up to 90% of the book value for the car you are looking to purchase. I'd be willing to bet that in this buyer's market most cars you're looking at will be around that mark anyway, but you never know. If you plan on rolling in another loan you're upside down on, you can bet on needing a downpayment if you have fringe credit.
