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Would it be possible for me to get an Auto Loan with 0 down?

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
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Would it be possible for me to get an Auto Loan with 0 down?

Hey guys, long time reader first time poster. I am wondering if you good folks would have any recommendation on the requirements to obtain a vehicle with no down payment. I currently own a Lexus is250 2008.. Only 51k Miles and I have received an offer from 6.8-7.5K from a few dealership here in West Palm Beach, FL. I owe 11k on the vehicle so although i'm upside down not by much. I'm currently in school to become a Project Manager and am currently working as a pipelayer and hourly pay is only $19 an hour. After taxes before overtime i'm bringing home ~1,350 every 2 weeks or 2,700 monthly. Sometime's I can earn much more with overtime. I have only been at this job since July(as i'm worried).

 

Recently we have a big job on the West Coast of Florida in which I will be driving from Ft.Myers to Palm Beach Tues/Thurs as I have Calculas(all other classes are online). I do detailing on the weekend's and have decided for me the best thing is to get into a Truck and eventually get a trailer so I can make a few hundred extra on the weekend's.

 

Me and my wife pay 1,350 rent but I am not on the lease(so I was thinking of claiming I have no rent when getting the new vehicle).

 

We are getting our first home in 2-3 years.

 

I am looking at a 2018 Certified RAM 1500 Sport for 31K with 6k Miles that I have fell in love with. I have been afraid to do a Hard Inquiry as I am up and down about waiting for income tax and having 5k to back as a downpayment. I currently only have 3.2k in my account and don't want to use all my funds ona  downpayment.

 

Per Wells Fargo my Fico score is a 696. I have one baddie of $771 from Sprint that falls off my profile in July so I decided to not pay.( I was out the country for 5 years in Jamaica taking care of my grandfather who passed). I also have a 2k Student Loan.

 

3 Credit Cards. Capital One Platinum, Quicksilver One, and a Walmart card. All with $300 balances. No late payments on any nor any late payment on my car Loan. 

 

My car loan is $332 per month but I alway's pay $350. I got back to the states in October of 2017 and since then I went from a 567 to scratching 700 as I stated. I have probably spent hundreds.. yes HUNDREDS of hours of reading through myFICO forums on different topics.

 

Sorry for the long read. Should I attempt to get the vehicle without a downpayment or save the Hard Inquiry for when I have ~5-6k for a downpayment?

 

EDIT*

All cards are at 0 minus my Plat card which I let report $1 every month as I read that's best.

3 REPLIES 3
Frequent Contributor

Re: Would it be possible for me to get an Auto Loan with 0 down?

Welcome to the Forums! Good job repairing your credit since your return from overseas.

 

In my experience, it's tough to get 0% financing on auto loans except for new cars and trucks. Almost unheard of for a used (even CPO) vehicle. For example, late last month I acquired a new 2018 Ford F150 because Ford Motor Credit was offering 0% down for 72 months. However, when I bought my CPO 2016 Mercedes, the lowest rate Mercedes Benz Financial Services was offering was 1.9% for 48 months. 

 

So, you may be able to find a 0% loan but they usually are subsidized by one of the big automakers. If you really want 0%, you may have to purchase a new car. Your credit scores and income are probably marginal for a 0% loan but I would check with the dealership at the end of the month, when they really need to sell cars.

 

Good luck!

 

Message 2 of 4
Frequent Contributor

Re: Would it be possible for me to get an Auto Loan with 0 down?

Would it be possible to get a loan on the truck with 0 down and rollover your inequity? Yes it would be, however I would highly recommend against doing that if a truck isn't a NECESSITY at this point in time. Wait until you recieve your refund, this will net you much better results in term's of financing. I wouldn't recommend putting $0 as rent, if anything the full rent amount should be split in half on the application which would be "your portion."

AMEX BCE ($39,500) CITI AAdvantage ($20,500) Region's Platinum Card ($14,400) Discover IT ($23,000) Macy's ($7,000) Chase FU ($10,000) Barclay's Aviator ($22,000) TU:778 EX: 781 EQ:791
Message 3 of 4
Senior Contributor

Re: Would it be possible for me to get an Auto Loan with 0 down?

Unless you must have this vehicle. Wait and finish up the payments on your current vehicle. If anything, drop the down payment on your current vehicle.
The last thing you want to do is continue digging a hole. That is what will happen if you trade in your current vehicle and roll over the negative equity into the truck. Doesn't matter what the rate is, if your upside down on the new loan.

Start clean when you buy the next. Save for a large down payment. Negotiate the price of the vehicle and obtain your own financing.
Message 4 of 4