Can I get a used car loan without a down payment?

Yes, it is possible to get a used car loan without a down payment, but this is rare. Most lenders require you to pay a portion of the car’s value upfront (down payment), which usually ranges from 10% to 20%. Some financial institutions may finance up to 95%, but these offers are generally reserved for borrowers with excellent credit and financial stability.

Some advantages of making a down payment include:

• Lower loan amount, resulting in more affordable EMIs
• Reduced interest burden over the loan tenure
• Higher chances of loan approval by lenders
• Better loan terms, such as lower interest rates and flexible repayment options

If you’re planning to buy a used car, it’s a good idea to save for a down payment. This improves your loan approval chances and makes managing finances easier. Always check specific lender policies before applying.