How does no-down-payment car financing work?

A traditional down payment reduces how much of a vehicle's purchase price needs to be financed.

Some financing arrangements may allow qualified buyers to borrow a larger portion of the vehicle price and begin without a traditional cash down payment.

What changes when you put $0 down?

Financing more of the purchase price can increase the amount borrowed, which may affect the monthly payment and total financing cost.

What may lenders review?

• Credit history and credit score;
• Income and employment information;
• Existing monthly debts;
• Vehicle selling price;
• Requested loan amount;
• Loan repayment term.

What kinds of vehicles can you compare?

U.S. buyers can explore new and pre-owned sedans, compact cars, crossovers, SUVs and pickup trucks.

Common models may include the Toyota Corolla, Honda Civic, Hyundai Elantra, Nissan Rogue and Chevrolet Equinox.

What should you compare between offers?

• Vehicle selling price;
• APR;
• Amount financed;
• Monthly payment;
• Loan term;
• Finance charges;
• Total amount paid.

What documents may be requested?

• Government-issued ID;
• Proof of income;
• Proof of residence;
• Employment information;
• Auto insurance details.

What other ownership costs should you consider?

Remember to account for insurance, fuel, registration, maintenance, tires, repairs and applicable parking or toll expenses.