Lenders view zero-down loans as riskier and frequently charge higher annual percentage rates (APRs).

You can drive a car off the lot today without waiting months to save up a large sum of cash.

Financing 100% of a vehicle’s purchase price—including taxes, dealer documentation, and registration fees—is known as a zero-down car loan. While this is a highly accessible option for buyers who need a vehicle immediately but lack a lump sum of cash, it comes with distinct financial trade-offs.

To understand the long-term impact of skipping the down payment, compare the benefits against the drawbacks: