For many Americans, a new or used car is essential for daily life—commuting to work, running errands, or taking the kids to school. However, the high cost of a down payment can often feel like a roadblock. While many dealerships require a significant upfront sum, it is possible to find a vehicle with a down payment as low as $700. This guide will walk you through the process, explain what to expect, and provide you with a list of resources to help you get on the road.
A down payment is the initial sum of money you pay toward a car purchase. It reduces the amount you need to borrow, which can lead to lower monthly payments and less interest paid over the life of the loan. While a larger down payment is always beneficial, a smaller one can be a game-changer for those with limited savings. When a dealership offers a car with a $700 down payment, it's typically part of a special financing program designed to help buyers with less-than-perfect credit or those who simply don't have a large amount of cash on hand.
These financing options are most commonly found at "Buy Here, Pay Here" dealerships, which offer in-house financing. This means the dealership is both the seller and the lender, simplifying the approval process and often making it more accessible to a wider range of customers. They focus more on your ability to make payments based on your current income and stability, rather than solely on your credit score.
While a $700 down payment is a great starting point, remember that your total vehicle cost will also include the price of the car, taxes, registration, and other fees. The specific down payment required may also vary depending on the total price of the vehicle you choose. For example, a lender may have a requirement of "$1,000 or 10% of the car's selling price, whichever is less." This means if you find a car for $7,000, a $700 down payment would meet the criteria.
Beyond the down payment, be prepared to provide a few key documents. Most dealerships will ask for a valid driver's license or photo ID, proof of income (such as recent pay stubs), and proof of residence (like a utility bill or lease agreement). Having these documents ready will help speed up the process and get you into your new car sooner.
Where to Find $700 Down Payment Car Deals
Finding the right dealership is key. Here are some of the types of dealerships and online platforms to explore:
Buy Here, Pay Here (BHPH)Dealerships: These are your best bet for low down payment options. They specialize in working with buyers who may have bad or no credit. They are typically locally-owned and operated, so a quick search for "Buy Here, Pay Here near me" can yield great results.
National Used Car Retailers: While some of the larger used car retailers like Enterprise Car Sales or DriveTime may have different down payment requirements, they often have a range of financing options and can work with various credit situations. It's always worth checking their online inventory and financing pre-approval tools.
Online Car Marketplaces: Websites like AutoTrader and Cars.com allow you to filter your search by price and even down payment. This can help you find individual cars for sale that may have a low initial cost, allowing you to meet a modest down payment requirement.
Dealerships and Resources for Low Down Payment Cars
Here are some examples of dealerships and online services that specialize in or offer low down payment financing. Always check with the specific location for their current inventory and financing terms.
First Choice Auto Finance: This Texas-based dealership offers a range of vehicles with a $700 down payment plus tax and title. They have a wide selection of used cars, SUVs, and trucks. Link to First Choice Auto Finance Inventory
No Credit Check Auto Sales: Located in Kansas City, MO, this dealership specifically advertises cars with down payments as low as $500-$700. They focus on in-house financing for people with no credit or bad credit. Link to No Credit Check Auto Sales
Auto Credit Express: This is an online service that connects you with local dealerships that specialize in bad credit and low down payment loans. They can help you find a dealer in your area that is likely to approve your application. Link to Auto Credit Express
DriveTime: Known for its easy, no-hassle financing, DriveTime offers a transparent process with a wide selection of used cars. You can get pre-qualified online without a hard credit check to see what kind of down payment you might need. Link to DriveTime
Texas Auto Center: This dealership in Texas is another example of a place that works with a variety of financial situations and can use trade-ins to help reduce the amount you need for a down payment. Link to Texas Auto Center
By doing your research and having your documents in order, you can find a reliable vehicle with a down payment that fits your budget. Don't let a lack of a large down payment keep you from getting the car you need.