It can be tempting to drive off the lot of Helfman Ford in a new Ford car while putting zero down. But is a zero-down payment car loan right for everybody? Here at our Ford finance department at Helfman Ford, our friendly professionals are happy to break down the pros and cons to help you make an informed Ford financing decision.
Pros of Zero-Down Financing
Just to be clear, zero-down financing is when you purchase a new or pre-owned Ford car without making a down payment. Doing so has the following advantages:
- Save Cash Upfront: The most obvious benefit is having more money in your pocket upfront. This is especially appealing for larger car purchases.
- New Car Access: If a new Ford model is your goal and you find that you’re short on cash at the moment, then zero-down financing can be the key to driving it sooner rather than later.
Cons of Zero-Down Financing
- Higher Interest Rates: Lenders often compensate for the zero-down payment by charging a slightly higher interest rate, which means that you may pay more money over the complete loan term.
- Upside-Down On Your Loan: Initially, you will be upside-down on your car loan, which means that you owe more than the vehicle is worth. This can be an issue if you plan on selling or trading in your vehicle early.
When Does Zero-Down Financing Make Sense?
- High Credit Score: If you have a good credit score, you are more likely to qualify for low interest rates, even with a zero-down loan.
- Short Loan Term: If you’re planning on paying off your car quickly (36 months or less), this minimizes the impact of a higher interest rate.
Ford Finance Solutions in Stafford, TX
Whether you want a zero-down payment loan or a more traditional loan, we have got you covered here at Helfman Ford. Our helpful finance professionals are ready to help you find a loan that works for you!
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