No Down Payment Used Car Loans

No down payment used car loans can be found at virtually any dealership today, it is simply up to the customer to decide whether it is the best choice for them. A no down payment car loan is the same as a traditional Windsor, ON car loan but the customer does not need to pay any money down. Often a customer can drive off the car lot in their new car without having to spend any money at all. All of the fees associated with the purchase of the car can be rolled into the loan itself so that the borrower does not need to spend any cash. This is a service that we offer to those who apply at OntarioCarsOnCredit.com through our dealership.

What Are No Down Payment Used Car Loans?

Traditionally in Ontario, when a car is purchased the purchaser will put down a specific amount of money towards the car. The amount of money that is required is usually determined by the lender and is called a down payment. A down payment secures the new owner's interest in their car by communicating to the lender that the owner is financially responsible enough to have saved a down payment. In return, the lender will offer an interest rate and terms that is determined by the borrower's financial situation and the amount that the borrower is requesting. Larger loans may require larger down payments for the bank to feel more comfortable lending the money and borrowers that are financially risky may need to offer a larger down payment.

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Why Do No Down Payment Loans Exist?

Certain lenders such as dealerships like ours no longer require down payments for their auto loans. There are many customers in Windsor today that cannot afford a down payment but still need a car and dealerships like us both understand this and wish to serve our customers. Further, we do not see the necessity of down payments because the loans are already secured with the value of the car. This means that if the loan does go into default it can always auction off the car for its current value and recover the amount of the loan. Secured loans are not a significant risk because of this and that is why we can easily get you pre approved used car loans even with no down payment right here at OntarioCarsOnCredit.com. Down payments are still a good idea because it cuts the amount of interest that will be spent over the term of the loan significantly but those that cannot afford a down payment no longer need to worry about saving up the money before they can buy a car.