I Don't Have A Down Payment For A Car - Can I trade In My Motorcycle On A Car?

by Mike Reitz
Show Me Cool Cars

How to buy a car when you don't have the down payment for a car, takes some thinking out of the box on your part. In today's world you are expected to have a down payment when you purchase a vehicle, in the form of cash or a trade-in. But, what do you do if you don't have the cash in hand?

Option One: Take a look at that motorcycle sitting in your garage that you haven't ridden only a few times in the last three years. You could trade it in on your next car. Not all dealers will want your motorcycle, so you will have to check around and see who is open to taking your bike in on trade. Or if you have the time, you could sell your motorcycle on your own and use the proceeds from the sale to put down on your car.

Option Two: Here are certain steps you can take that can help you get the car you want and need with no money down. You may be surprised where you can finance 100 percent of the purchase, including fees and taxes. However, there is a down side to doing this, you want to make sure you protect yourself from financial liability in case of a loss.

Steps To 100% Financing

1. Unless you can pay cash for a car, you will need to secure financing that will have monthly payments. You will want to determine how much you can afford a month, without putting yourself in a financial bind.

2. Before going out shopping for a car, check with your bank or credit union for a car loan. Usually these type of loans are least expensive than getting a loan from a car dealer. However, I have seen where some dealers and auto brokers have gotten better rates for their clients than the client got for themselves. This is due to the large amount of business that the dealers and brokers do with the lenders.

3. Buy a car that you can easily qualify for and that fits in your budget. Don't get caught up in all the buying hype and spend more than you intended.

4. If you have good credit you may qualify for a no money down loan. Tell the sales person that you want to finance the entire amount of the car. They may try to persuade you that you can't do that and you must put money down. Don't buy into that story. Especially if you have good credit. Lot's of people buy cars with no money down.

5. By all means take a serious look into buying GAP insurance, if you do finance with no money down. This is an excellent program and inexpensive insurance for an extra few dollars a month. This insurance will pay the difference between what your car insurance company would give you and what you owe, in the event your car is stolen or your car is a total loss after a car accident.

Article submitted Tuesday, May 24, 2011 & read 2 times.

Mike Reitz is a Denver Auto Consultant, teacher and author who regularly contributes eBooks and articles designed to show you how to get the best deal on your vehicles. If you would like to learn more, Click Here...we have the antidote for your car buying blues during and after your bankruptcy.

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