Unless you live in a city where you can rely completely on public transportation, owning a car is a necessity. According to Gallup, 94% of Americans drive their car at least some of the time. 83% drive their car on a daily or weekly basis.

woman holding car keys

But buying a reliable vehicle doesn’t come cheap. As of May 2019, the average ticket price for a car is $37,185 which is up 3.7% from a year earlier. For most people, that kind of price tag is out of reach unless they can take out an auto loan.

How Can I Get a Car With Bad Credit and No Money Down?

Two things prevent most consumers from buying a new car. They either have bad credit or they can’t afford a down payment. And for some consumers, it’s a combination of the two.

Fortunately, new lenders pop up all the time and many of them are willing to give auto loans to less creditworthy consumers. Here are the five best auto loans for consumers with bad credit and no down payment.

Auto Credit Express

How it Works

Auto Credit Express is an online marketplace that connects you with more than 1,200 auto dealerships and lenders. These lenders offer financing on new and used cars. The company will even work with borrowers who have gone through bankruptcy.

To get started, you can use the company’s Auto Loan Estimatorto see how much you can expect to be approved for. From there, you can apply online or over the phone.

Requirements

  • Located in the U.S. or Canada
  • Employed full-time with a monthly income of at least $1,500
  • You have or can apply for auto insurance
  • Have a working phone number
  • Can show proof of residency

Advantages

Choosing Auto Credit Express automatically increases your odds of being approved for a loan simply because they work with so many lenders. Dealers in their network offer loans up to $35,000 and the company does allow co-signers.

The application process is quick and easy. And Auto Credit Express does a soft pull on your credit so your credit score won’t be affected.

Disadvantages

If you have a slightly better credit score, then you will probably save money by working with a credit union or bank instead. And while Auto Credit Express won’t do a hard pull on your credit, one of their lenders might.

Blue Sky Auto Finance

How it Works

Blue Sky Auto Finance is another lending marketplace that connects borrowers with auto lenders. This will save you time because you don’t have to apply with multiple lenders and auto dealers.

To get started, you can apply online in three simple steps. Blue Sky promises that the finance request form is easy to fill out and that you can be approved for a loan in as little as 24 hours.

Requirements

  • Borrowers must be at least 18
  • Have a monthly income of at least $1,800 per month
  • The car’s mileage must be under 100,000 miles
  • Vehicles must be less than eight years old
  • The loan amount must be $8,000 or higher

Advantages

Blue Sky Auto Finance offers fast approval for borrowers with poor credit. They’re even willing to work with you if you’ve filed for bankruptcy in the past. The application process is easy and you could be approved for a loan in as little as 24 hours.

Disadvantages

Blue Sky does put more restrictions on the type of car you’re able to purchase. And if your credit is considered poor, you may be paired with a lender who charges high interest rates and fees.

Car.Loan.com

How it Works

Car.Loan.com is a lending marketplace that will match you with auto lenders. They have no credit requirements and are willing to work with subprime borrowers. You can buy, lease, or rent a new or used car through Car.Loan.com.

To get started, you’ll follow the company’s four-step process. First, you’ll apply online then the company will match you with a lender or dealership. You’ll choose the car that best meets your needs and once you’re approved, you can drive away in your new car.

Requirements

  • You must be a U.S. citizen
  • Borrowers must be employed full-time or have a guaranteed fixed income
  • You must be at least 18 to apply

Advantages

Car.Loan.com will work with you even if you’re a subprime borrower or have gone through bankruptcy. And working with a lending marketplace will save you from applying with a bunch of different lenders. And the company doesn’t put any mileage restrictions on the vehicle you purchase.

Disadvantages

Working with a lending marketplace like Car.Loan.com doesn’t necessarily mean you’re going to be offered the best deal. You could receive interest rates as high as 25% as well as hefty dealership fees. And unfortunately, the company offers limited information online so it’s impossible to know what kind of rate to expect.

myAutoloan

How it Works

When you apply for an auto loan with myAutoloan, you’ll receive quotes from multiple lenders who are willing to work with you. If you apply with a creditworthy cosigner, you’ll receive more favorable rates. Any loan offers you receive will last for up to 30 days and you’re not required to choose any offers you receive.

Requirements

  • The vehicle can’t be more than 10 years old
  • The maximum vehicle mileage is 125,000 miles
  • You must have a minimum credit score of 500
  • You must have a monthly income of at least $1,800
  • Borrowers from Hawaii or Alaska aren’t eligible

Advantages

Unlike many of the lenders on this list, myAutoloan.com shares information about their rates online. This means you can get a better sense for what kind of loan you’ll qualify for before you apply.

And the company allows you to apply with a cosigner so this is a good way for borrowers with poor credit to earn a better rate.

Disadvantages

The company does have a minimum credit limit so if your score is below 500, you’ll need to choose a different option. And myAutoloan.com puts restrictions on the type of vehicle you’re able to purchase.

RoadLoans

How it Works

RoadLoans is a lending platform that matches borrowers with lenders who offer new and used car loans. The company works with more than 14,000 dealerships nationwide.

You can apply online with RoadLoans in less than 10 minutes and receive a lending decision instantly. You’ll fill out the company’s one-page lending application and then receive offers from interested lenders.

Requirements

  • Borrowers must be at least 18 to apply
  • Lending isn’t available for borrowers in Alaska, Hawaii, Mississippi, Nevada, or New Hampshire
  • You must have a minimum monthly income of $1,800
  • The minimum loan amount is $5,000

Advantages

There are no credit requirements to apply for a loan through RoadLoans. And the company may be a good choice if you were hoping to take a loan from a dealership. RoadLoans doesn’t charge any fees and the application process is fairly straightforward.

Disadvantages

If you have poor credit, you will likely end up with a high interest rate and fees. And RoadLoans won’t be an option for you if you live in one of the states they aren’t available in.

Summary

Thanks to these types of online marketplaces, borrowers with bad credit have more lending options than ever. This means you don’t have to be limited by poor financial decisions you made in the past.

However, it’s important to know what you’re getting into before taking out an auto loan. Compare offers from multiple lenders and make sure you can afford to make the monthly payments. And most importantly, begin taking steps to improve your credit score.