Car Buying Tips: Looking To Buy Car At Zero Down Payment? Here's How To Do It

Car Buying Tips: Many people dream of buying a new car, but not everyone can afford to pay the entire amount in one go. That's where car financing comes in, allowing customers to pay a certain percentage of the car's price and borrow the rest. However, did you know that it's possible to get 100 per cent finance for a new car without making any down payment? Let's delve into how this can be done.

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Several banks offer the option of zero down payment, also known as a car loan without a down payment, especially to their existing customers. These offers are termed as Pre-Approved Car Loan Offers and are also extended to individuals with good credit scores or high incomes. Typically, such loans can last up to seven years, providing customers with the flexibility of not having to pay any money upfront to purchase a car. However, it's essential to note that banks may charge a file processing fee for processing the loan application.

What All Is Covered In Zero Down Payment? 

While the usual interest rates for car loans range from 8.75 per cent to 9 per cent, availing a zero down payment option may lead to slightly higher interest rates, usually around nine to 10 per cent. Despite this, the offer covers various costs associated with buying a new car, including the ex-showroom price, car registration, road tax and insurance. However, it's crucial to understand that the cost of any additional accessories added to the car will not be covered under this offer, and customers will have to pay for them separately.

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Documents Required For Zero Down Payment 

To avail the zero down payment facility for a new car, certain documents are required by the bank. These typically include Aadhaar card, PAN card, address proof, income tax return, and six months' bank statements. Some banks may also ask for information about guarantors along with these documents to process the loan application smoothly.