So you need a new car but you're not able to provide a down payment. What now? We've got some options for you to consider.

Not everyone can spare several thousand dollars for a down payment on a new or used vehicle. You know that you'll likely get a better loan or loan terms if you supply a down payment, but since you don't have one you might be tempted to put off getting a newer vehicle. However, you do have options to try and protect your finances if you need a new ride NOW but don't have the cash for a down payment. 
  • First, you should consider getting Gap Insurance when you do decide to get a new ride. Gap insurance fills in the difference between what your insurance company would pay for your vehicle if it's in a wreck and not repairable and what you owe on the car.
  • Opt for the "new-car-replacement" coverage on your insurance policy. If the unthinkable happens and your new ride gets damaged beyond repair in an accident, this type of policy will pay for a new vehicle of the same make, model and equipment. If you choose not to have new car replacement coverage and your car ends up being a total loss, your insurance company will only give you the actual market value of the car which means you may end up owing money on a vehicle that's a total loss and not even able to be driven.
  • Consider a vehicle with a lower selling price. A lower price vehicle means your loan amount and monthly payments will be lower. 
  • Find a co-signer. If a co-signer who has a great credit score agrees to accept liability for repaying your loan if you can't or don't pay it, the lender's risk is reduced and they'll be happy to provide you with better interest rates which will reduce your monthly payment amount.

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