Is it possible to finance a car without a down payment? Find out here!

The dream of a new car comes to everyone, and the doubt about the possibility of finance a car without a down payment usually accompanies.

This is because it's very common to have income to pay the installments, but not have the 20 or 30% of the total amount to put down. What should we do in this case?

In today's article, we'll answer the most common questions about this topic, so that by the end, you'll understand the main automotive financing conditions available on the market. If that's what you need, stick around!

What are the costs of financing a car?

Before we answer whether it is possible to finance a car without a down payment, it is important to talk about the common costs of this type of purchase.

This is because we usually check the possibility of purchasing according to the installment plan. In other words, if the installment plan fits my budget, I can buy it, right? Not always!

In addition to the installment amounts and the down payment itself, vehicle financing usually involves a series of costs, such as:

Fees: All financing has interest, so simply dividing the value of the car by the number of installments can give you a misleading view of your payment potential.

Transfer rate: When purchasing a vehicle you must transfer it to your name, and for this there are some DETRAN fees.

Registration: If you're purchasing a new car, you'll need to get it registered, which can cost approximately R$180.00. For pre-owned vehicles, if the license plate is from another state or is an older model, you'll also need to update it.

Among other costs which may vary depending on the financial institution responsible for the contract.

Therefore, if you don't have the down payment for the financing, remember that you must also have some cash on hand to cover these additional costs.

Read also: PAN Bank Vehicle Financing – Valor Notícias.

Is it possible to finance a car without a down payment?

And finally, we come to our central question: after all, is it possible to finance a car without a down payment?

Yes, it is possible to finance a car without a down payment, but this is an unconventional option, as most financial institutions require a down payment of 20 to 30% at the time of purchase.

In general, obtaining this type of contract is not so simple, as it requires an additional degree of trust on the part of the lending bank, which will have to finance 100% of the vehicle.

So, this type of contract can be offered in some cases, such as:

Client with good history: positive score, good relationship with the bank, no history of debt, with other contracts with the bank, etc.

Lower value vehicles: In general, financing without down payment is offered for vehicles up to R$ 50 thousand, as the risk is lower than in credit for more expensive vehicles.

Creditor campaigns: In some cases, lenders may occasionally launch no-down-payment financing campaigns. This isn't a common ad, but it's usually aimed at attracting customers. 

Anyway, what you need to know is that Yes, it is possible to finance a car without a down payment, but this proposal is intended for customers with a good history and is not offered by all creditors..

++See how to finance a car simply and online (valornoticias.com).

I couldn't get financing with no down payment. What should I do?

As we saw previously, financing a car without a down payment is not a remote possibility, although it is difficult to achieve.

And, if you're part of the group that tried this type of deal and ended up with a rejection, don't worry, because there's still a way for you to make your dream of a new car come true.

Below are 3 ways to buy your car, even without having the down payment in hand:

1. If possible, offer another vehicle as a down payment. 

If you already have another vehicle, it's worth offering it as a down payment to the dealership.

For this, you can use a pre-owned car or even a motorcycle, depending on the amount you need.

This option is advantageous for customers who want to buy a car just to get a more current model.

It's important to note that this type of agreement can have some disadvantages, as dealerships often price the car below market value.

But if you have your dream car in mind and don't care about maximizing the value of your old vehicle, this can be a great way to make things easier.

2. Research loan options for the down payment.

In some cases, it is possible to obtain the down payment for your financing through a loan.

For example, suppose you want to purchase a vehicle worth R$70,000 and the down payment is R$20,000. If you have a good credit profile, you may be able to get a personal loan to cover this amount.

However, it is important to keep in mind that the value of the financing installment must be added to the value of the loan installment, as you will have both financial responsibilities to bear.

Depending on the bank's loan proposal, the installments may fit your budget, making the purchase of a new vehicle viable.

So, if you weren't able to finance a car without a down payment, it's worth checking out this option.

3. Look for other financial institutions 

Sometimes, your proposal to finance a car with no down payment was rejected simply because you don't have a sufficient relationship with the lending bank.

As we explained previously, this type of contract is usually granted to customers with a higher level of relationship, which offers more guarantees to the bank.

Therefore, if your proposal has been rejected, run a simulation with your everyday bank, as the chances are higher.

Remember to evaluate the market as a whole, as the first contact is not always the most advantageous or the only possible option.

Is it worth financing a car without a down payment?

Finally, after we've addressed the main questions about financing a car without a down payment, there's only one left: is this type of proposal worth it?

It is important to highlight that the interest rates for this type of contract tend to be higher, as the risks for the creditor are also higher.

Furthermore, it is essential that you check the installment amount and payment term, as they can end up weighing on your pocket.

Remember that for the bank, the down payment acts as a type of guarantee, so taking out a loan without a down payment can be riskier, which is why the terms are usually shorter and the installments smaller.

So, to decide whether it's worth financing a car without a down payment, it's crucial that you carefully evaluate the proposal in order to find out the interest charged and the payment terms.

In any case, for those who don't have the down payment, this financing option can be an excellent solution, when done responsibly!

This may interest you: Consortium or financing: which is more worthwhile? – Valor Notícias.