5 Best Car Loans for Bad Credit and No Down Payment


Unless you live in a city where you can rely completely on public transportation, owning a car is a necessity. But buying a reliable vehicle doesn’t come cheap.

As of February 2023, the average price for a new car is over $49,000 and the average price for a used car is over $33,000. That kind of price tag is out of reach for most car buyers 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, some lenders are willing to give auto loans to less creditworthy consumers. Here are the top five no down payment auto loans for people with bad credit.

Top 5 Bad Credit Auto Loans

Auto Credit Express

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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 auto financing on new and used cars to borrowers with bad credit. The company will even work with borrowers who have gone through bankruptcy.

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


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


Choosing Auto Credit Express automatically increases your odds of qualifying for a car loan simply because they work with so many lenders. Dealers in their network offer no-money-down car loans up to $35,000, and the company does allow cosigners.

Applying is quick and easy. And Auto Credit Express does a soft pull on your credit report, so your credit score won’t be affected.


If you have a slightly better credit score, you may 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.


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Car.Loan.com is a lending marketplace that will match you with subprime lenders. They have no credit score 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.

Next, you’ll choose the car that best meets your needs, and once you’re approved, you can drive away in your new car.


  • 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


Car.Loan.com offers bad credit car loans to subprime borrowers even if they’ve gone through bankruptcy.

Working with a lending marketplace will save you from applying with numerous lenders. And the company doesn’t put any mileage restrictions on the vehicle you purchase.


Working with a lending marketplace like Car.Loan.com doesn’t necessarily mean you’re going to be offered the best deal. For example, you could receive interest rates as high as 25% as well as hefty dealership fees.


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Carvana’s unique value proposition is that you can take out a loan, choose a vehicle, and buy a car all in one place. The company has a large selection of used cars you can choose from, and there is no minimum credit score to apply.

To get started, you’ll fill out a quick survey of what you’re looking for in a car. You can get pre-qualified for an auto loan in 2 minutes. Carvana will then match you to several vehicles.

Once you’ve chosen a vehicle, they’ll run a soft pull on your credit to preapprove you for an auto loan. Once you finalize the loan application, Carvana will do a hard pull on your credit.


  • Borrowers must be at least 18
  • Have an annual income of at least $4,000
  • No active bankruptcies
  • The loan amount must be $1,000 or higher


Carvana offers fast approval for borrowers with a poor credit history and no down payment. In addition, the online process is easy, and you could qualify for a car loan in as little as 48 hours.

Carvana’s customer service available seven days a week.


Carvana has a maximum APR that is higher than other lenders. You can only finance vehicles sold through Carvana. Unfortunately, Carvana is not available to residents of Hawaii and Alaska.


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When you apply for an auto loan with myAutoloan, you’ll receive quotes from multiple auto 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. However, you’re not required to choose any offers you receive.


  • 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 an income of at least $1,800 per month
  • Borrowers from Hawaii or Alaska aren’t eligible


Unlike many of the online lenders on this list, myAutoloan.com shares information about their rates online. This means you can better understand what kind of auto 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 bad credit to get a better interest rate.


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


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RoadLoans is an online lending platform that matches borrowers with bad credit scores to lenders who offer new and used car loans. The company works with more than 14,000 car 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.


  • 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 income of $1,800 per month
  • The minimum loan amount is $5,000


There are no credit requirements to apply for a car loan through RoadLoans. And the company may be a good choice if you were hoping to get a no-money-down car loan from a dealership.

RoadLoans doesn’t charge any fees, and the application process is fairly straightforward.


If you have less than average 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.

What is a zero down auto loan?

A zero down auto loan is exactly what it sounds like – a car loan that requires no down payment. This can be an attractive option for those who don’t have a lot of cash on hand or would rather put their money towards other expenses. However, keep in mind that bad credit auto loans may come with higher interest rates and longer loan terms than traditional car loans.

If you have bad credit, a no-money-down auto loan may seem like the perfect solution. But you’ll need to be cautious when considering bad credit auto financing. These types of loans often come with higher interest rates and fees, which can make your car payment much more expensive in the long run.

When shopping for bad credit auto loans, it’s important to compare offers from multiple lenders, including online car dealerships. Online car dealerships may offer more competitive rates and loan terms than traditional lenders, but always do your research and read reviews before making a decision.

Before signing on the dotted line, make sure you understand the loan term of your car loan. Longer loan terms may mean lower monthly payments, but they can also result in paying more interest over the life of the loan. Be sure to calculate the total cost of the loan to determine if it’s the right option for you.

How to Get a Car Loan with Bad Credit

If you have bad credit and need to purchase a car, it can be challenging to find a lender willing to provide you with a car loan. However, there are several steps you can take to increase your chances of obtaining a car loan even with a less-than-perfect credit score.

  1. Check your credit report: Start by checking your credit report to identify any errors that could be bringing down your score. Disputing and correcting any mistakes could increase your score and improve your chances of getting approved for a car loan.
  2. Find a cosigner: Having a cosigner with a good credit score can make it easier to obtain a car loan, as lenders may be more willing to offer financing with a lower interest rate. However, keep in mind that a cosigner is equally responsible for the debt and any missed payments can negatively impact both parties’ credit scores.
  3. Research lenders: Look for lenders that specialize in bad credit car loans, as they may be more willing to work with individuals with poor credit. Some credit unions and online lenders may also offer more flexible options.
  4. Avoid predatory lenders: Be cautious of lenders who offer car loans with high interest rates or hidden fees. These loans can be difficult to pay off and may ultimately damage your credit history even further.
  5. Build your credit scores: While it may not be an immediate solution, taking steps to improve your credit scores can help you in the long run. Paying off debts on time, keeping credit card balances low, and maintaining a good credit utilization ratio can all help boost your credit scores.


Thanks to these types of online marketplaces, borrowers with poor credit looking for a zero down auto loan 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 a car 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.

Frequently Asked Questions

Can I get a car loan with bad credit and no down payment?

Yes, there are car loans available for people with bad credit and no down payment, but the terms and conditions will depend on the lender and your credit score.

What is the average interest rate for bad credit auto loans and no down payment?

The average interest rate for a bad credit car loan with no down payment is generally higher than for those with good credit and a down payment. It can range from 10% to 20%, depending on the lender and your credit score.

What are the requirements for getting a car loan with bad credit and no down payment?

The requirements for getting a car loan with bad credit and no down payment will vary depending on the lender. Typically, you will need to provide proof of income, employment, and residence, as well as a valid driver’s license and insurance.

Jamie Johnson
Meet the author

Jamie Johnson is a freelance writer who has been featured in publications like InvestorPlace and GOBankingRates. She writes about various personal finance topics including student loans, credit cards, investing, building credit, and more.