We’ve all see the ads that blare about no money down for qualified buyers. But if your credit is bad, you might be worried that you don’t “qualify” for any car loan, let alone one with no money down. But you can, in fact, get a car for no money down, even with bad credit. You’ll just need to do a little research.

What Is Money Down?

Let’s start with what “no money down” means: Namely, that you make a down payment. A down payment is usually defined as a percentage of the negotiated value of the car. For example, if you’re buying a car for $20,000 before fees and taxes, you could put down $4,000, or 20% down.

It’s not an absolute prerequisite that you put a down payment on a car. It’s popular, and dealerships prefer it, but there’s nothing stopping you from buying a car without putting 15% or 20% of the value down at the dealership. As car prices rise, in fact, the down payment percentages are slipping lower and lower. The downside is that this means your monthly payments will be higher than if you put money down, and you should still save some money if possible to pay for excise tax and other expenses.

The only time a down payment is really required, in fact, is if you finance through a dealership. And since you won’t need to do that, you can set that concern aside. But then there’s the bad credit loan.

Getting The Loan

You should secure your financing before you buy a car for a few reasons. One, it gives you more leverage at the dealership and cuts out a second aspect of negotiation. Two, it means you can just pay for the car and drive it off the lot, no down payments required.

That said, you do need to secure the loan. Start with your basic budget and finances: Get your annual credit report and check it for errors, as even a point or two can make a surprising difference in interest rates. Work out your budget and what monthly payment you can afford.

Next, collect as many quotes as possible from as many lenders as possible. Look closely both at the short term, namely the monthly payments you’ll make, and the long term, or how much interest you’ll pay over the life of the loan. Pick the loan that costs you the least and fits your budget.

Then, and only then, should you go car shopping. Having a hard limit on your financing will be useful in that it will help you rule out cars that you can’t afford, and gives a sales person a goal to stay under. Don’t neglect doing your research online; look up both the dealership you’re considering and the cars they have available.

No matter what, don’t give up. One of the basic realities of many of our lives is that we need a car, and how we buy cars reflects that need. With a little work, a little research, and some smart shopping, you can get a 0 down bad credit loan.

The auto loan industry is undeniably booming. 2014 was a record year and 2015 looks to be topping it. However, sales aren’t the only records being broken. Increasingly, loan terms are rising and finding new lengths … including the eight-year auto loan. So what’s behind it, and why?

On Loan

There are several factors driving up the overall rise in loan terms. The most basic is simply the price of cars and their extras; the overall average price of both new and used cars has steadily risen over the last few years, to over $32,000 for new cars and $16,000 for used. While that’s an overall average that includes luxury vehicles and work vehicles, it still means that we’re trending towards paying more for our cars.

Similarly, there are more and more extras we can add to our cars, from anti-theft systems to back-up cameras, some necessary and some just what we want. Still, it can add thousands to the cost of a car, depending on the extras you choose. Similarly, the fees and taxes involved can rise substantially as the cost of your car goes up.

Finally, we’re tending to keep our cars longer and that’s affecting how we buy them. As build quality and engineering of cars has improved, even the most modestly priced new car will last longer on the road with lower maintenance costs. We’re also driving more safely, and thus are less likely to total our cars. In fact, odds are quite good that a car you buy today will still be on the road eight years from now, and will last at least another three years as a used car.

In other words, an eight year auto loan is less likely to worry consumers, but that doesn’t necessarily make it a wise financial choice.

Cost Ineffective

The popularity of six year and seven year loan terms is raising increasing questions both in and outside the industry about whether or not those loans are financially sustainable. But one point in which everyone’s in agreement is that eight-year loans may cost you more than you should pay.

The main issue is depreciation: As we all know, as a car ages, it’s worth less and less on the open market. An eight-year term puts car owners in danger of their loan “flipping:” In other words, you owe more on your car than it’s actually worth.

This means a lot more than a low trade-in value. For example, if you get in an accident, and your car is declared a total loss, your insurance won’t pay what you owe on the loan, leaving you with debt and no car. Such accidents are thankfully increasingly rare, but you’ll still find this issue if you go to trade in your car before you’re done with the loan; the trade-in value won’t even cover the cost of your loan, let alone help defray the cost of a new car.

While an eight year loan term may make sense in certain situations, think carefully about what you’re signing up for. It may not be a commitment you can afford.

It wasn’t so long ago that pulling up to the pump meant cleaning out your bank account. But prices are dropping ever lower, even getting below $2 a gallon in some areas. But why is gas so low … and will the low prices last?

Low Gas

The price of gas, like any product, is driven by supply and demand. As any driver learns, gas prices tend to fall in autumn and winter as people stop driving for vacations. But there’s a more complicated mix of factors at play here behind the plunging demand and supply staying stable, starting with the cars we buy. The industrialized world has been buying cars that are more and more fuel efficient; as we wring more miles out of a tank with each passing year, that drives down overall demand.

Beyond that, though, there’s been a shift in how we obtain gas for our cars. More and more, American cars use American and Canadian gas, partially because it’s much cheaper to distribute. Adding to the problem, European economies are weakening as their population ages, and other factors kick in. Increasingly, that leaves nations like Saudi Arabia and Russia competing in Asian markets, which drives down prices overall.

Furthermore, some nations, such as Venezuela, are suffering from outside economic factors that force them to drive down prices. Those external factors are contributing to low prices.

The main question, for drivers, is how long these prices can last. And there are already signs that while we may not see the bad old days of $4 a gallon gas back any time soon, the lower prices we’re enjoying aren’t going to last forever.

Pumped

Again, it’s a question of supply and demand, and it’s worth breaking out possible changes to both of those. Starting with supply, low prices are great for drivers, but they don’t exactly help out the oil industry. In fact, the low prices add up to major challenges for the American oil industry, which has already laid off 200,000 workers and is increasingly stopping efforts to search for new oil. In the short term, this will mean that if demand rises suddenly, there won’t be the supply to meet it.

Similarly, nations facing severe economic pressures might simply collapse, and take their oil infrastructure with them. If they can’t pump oil, they can’t ship it, and thus takes that supply out of the market. Groups such as OPEC may also decide to artificially drive down supply in order to raise prices.

On the demand side, the issue is simply that demand can spike or drop at surprising speed in international markets. Asian markets, for example, might suddenly go from low demand to high. Similarly, as oil markets adjust to efficiency designs in cars, they’ll begin to raise prices.

In short, while the good times will roll for a while, they won’t last forever. Plan ahead by getting a fuel-efficient car and looking into limiting driving for certain errands where possible. Planning to save gas now will pay off later.

When you’re buying a car, it pays to do your research. Used cars in particular need to be checked out in detail; sometimes a car has a less than savory past. If you’re considering a used car, here’s how to get a look at its past.

First, get the car’s vehicle identification number, or VIN. Every car sold in the US has a VIN, usually found on the driver’s side, either on the dashboard near where it meets the windshield or on the door post where the door latches. It should be fully visible and undamaged. If the VIN is unreadable or otherwise impossible to find, you can find it on the car’s title, or its current registration.

However, if you can’t find the VIN on the car, or if it looks altered to you, that’s your first warning sign. Check the VIN against as many sources as you can find before running any history reports, and when you receive the report, check the vehicle description against the car you’re looking at. If it’s not a perfect match, it’s time to step away.

When it comes to running the report, you’ve got multiple options. A good place to start is the National Motor Vehicle Title Information System. A federally operated database, the NMVTIS collects regular reports from junkyards, car recyclers, and insurers and is the most comprehensive resource for car data. While you can’t access it for free, it has a list of report providers and finding one that offers a cheap report is simple.

That said, spend the money to get the most detailed report possible, unless you trust the seller completely or know the recent history of the vehicle. Used cars can have surprising histories and incidents may be deeply buried in their pasts.

Once you secure the report, there are a number of red flags to look for:

Multiple owners: If a car has seen quite a few owners over a short period of time, that may be an indication that there’s something wrong with the car that you may not be hearing about from its current owner.

A “branded” title: Vehicles are generally issued a new title when an insurance company declared them a total loss. Almost always, this means the car shouldn’t be on the road; it’s been flooded, it was wrecked in an accident, or otherwise severely damaged.

Locations: Different parts of the country have different effects on cars. Areas with harsh winter storms, for example, may lead to more rust on steel parts. If a car’s been relocated, ask the owner why it’s taken a journey.

Unexplained body work: Not every accident is reported to insurance companies; sometimes, the previous owner just covers up the damage. If you see a lot of body work, ask why.

Mileage: Every time a car is inspected, goes through a smog check, or otherwise visits the shop, mechanics log the mileage. If the mileage doesn’t steadily go up on the report, the odometer may have been tampered with

With any car, do your research. It’ll save you money, aggravation, and time.

The test drive is a great way to get a sense of whether a car is right for you. But there should be more to the drive than just taking a car for a spin. Here’s what to look for when you’re doing a test drive.

Start by walking around the car and getting a sense of it. Open the trunk and see if there’s enough space; if, for example, you have a stroller, ask the salesperson if you can try to put it into the back and see if it fits. Alternately, you can measure your current trunk and check it against the car you’re considering; the dealership won’t mind if you bring a tape measure. Similarly, ask about the spare tire, the jack and other tools that come with the car. Are they easily accessible?

Once that’s complete, get into the car, adjust the seat, and get a sense of how it feels. Is it comfortable to sit in? Can you get into it and out of it easily? Can you see all the gauges and meters? Can you easily access all the controls? If you can’t drive the car in the first place, it’ll be a short test drive.

Start the car and turn off any outside distractions, like the radio. Listen to the engine; is everything operating smoothly? Run through all the controls before driving; test the turn signals, the transmission, the parking brake, the headlights, and other functions before driving. Make sure they’re accessible, smooth, and feel good to use.

Now would also be a good time to test out optional features you might be considering. If the car syncs to your phone, for example, ask to test out that feature and see how it works. Run through a few of the features

When driving, pick a route that reflects your usual driving. The salesperson may have a preselected route, usually a series of right turns, but ask to take it on a more detailed drive. Try to go up and down hill, take left and right turns, and drive it in reverse. Also be sure to park normally and to test out parallel parking as well.

While on the drive, ask questions. What do other customers tell them about the car? Have they run into anything owners should know? What’s standard equipment and what’s an extra in the car you’re driving?

During the drive, you’ll likely be getting a sales pitch. Be polite, of course, but defer the salesperson; even if you don’t have other test drives, you shouldn’t buy a car on the same day you test drive it. When you finish, collect information about the car, like the sales price and the costs of extras.

Finally, the most important step: Don’t test drive just one car. You’ll need to get a sense of at least a few cars, and they’re much like clothing; you should try on more than one to see how each feels. Once you’ve taken all your test drives and gotten all the information in place, then you can make the call.

The Federal Reserve recently convened and announced, to the surprise of many, that it would not raise interest rates. There’s a lot of relief among financial analysts and stockbrokers, but what does that mean to you, the auto loan shopper? Let’s take a look at why the Federal Reserve is important and how it affects auto loans

Indirect Action

Let’s start with what the Federal Reserve can and cannot do. There’s a lot of talk about how it can change interest rates and the economy, but the Federal Reserve really only has one tool at its disposal to affect the economy, the federal funds rate.

The Federal Reserve is essentially a bank that other banks use to loan each other money; if you’re a bank with a surplus, and a bank that needs money wants to borrow that, they go through the Federal Reserve. This is both to insure the money and to limit how much hard currency is exchanged directly between banks. The federal funds rate is something of a brake or throttle for the economy; if the Fed feels the economy is growing too fast and might collapse without being reeled in, it will raise the rate. It’s also usually reflected in the “prime rate,” which is the general interest rate most banks start with when calculating their interest rates.

Like any bank, the Federal Reserve charges an interest rate to use its facilities: The federal funds rate. The Federal Reserve sets a “target rate” it’d like to meet, and that more or less sets the cost of doing business if you handle money on a professional scale. As a result, whenever the federal funds rate starts changing, the supply of money changes, getting more abundant or less depending on how much banks have to pay to use the reserve.

So the Federal Reserve doesn’t directly change interest rates, but it can raise and lower the cost of doing business. As a result, if the federal funds rate changes, banks have to pay more or less and will pass that cost onto the consumer, across all financial products … including auto loans.

Well-Rated

As a result, that the Federal Reserve didn’t raise rates is good news for auto buyers currently looking for loans. But it also means that the rates you get now aren’t going to last forever.

It’s widely believed that it’s only a matter of time before the Federal Reserve decides to raise the federal funds rate. There’s a number of reasons behind this, but the ultimate effect will be the same; it’s going to become more expensive to get an auto loan over the life of that loan.

So, if you’re looking to buy a car, now is the time to do. Simply put, due to how monetary policy operates, you’re unlikely to get a better deal soon. Even just a modest increase in interest rates might cost you hundreds or even thousands more over the life of your loan, so don’t wait for the government to make a decision: Get your car now.

It’s long been a reasonable strategy for those of us who need a car; if you can’t swing new, buy used. Used cars are an enormous sector of the automotive industry, but usually with very different pressures. So it’s surprising to see trends in the new car sector being mirrored in the new, but the evidence is undeniable: The terms of used car loans are inching steadily upwards. But why?

Younger And Pricier

The answer is simple, in some ways: As the average price of a used car has risen to a record high of $18,800, loan terms have gone up to an average of 66 months. The price of cars and the length of car loans is tightly related; the more expensive it is to buy a car, the higher the monthly payment, and a longer loan term is a good way to reduce monthly payments at the expense of paying more interest.

However, those rising prices are complicated somewhat by the fact that used cars aren’t priced the way new ones are. The used car market is dictated to some degree by tastes in new cars a few years ago: The more “youthful” the cars hitting the market are, the higher the overall price of used cars. And the incoming stock is a lot newer than it used to be.

Part of this is the rise of leasing among Millennials; leasing has rapidly become more popular as a budget way to get a new car, and many leases return to lots as “certified pre-owned” vehicles. Similarly, it’s become much easier for a subset of drivers to turn in their car after their loan is paid off and buy a new car, which also drives up the availability of newer stock. It helps substantially that this newer stock is more likely to have aftermarket options and other popular items that increase the overall price of a car, and fuel efficiency is also in increasing demand.

Price pressure in the new market also plays a role. As the price of new cars rise, to an average over $32,000, it drives customers unable or unwilling to pay that premium are coming to the new market. In other words, there’s more and more demand for assets that are rapidly rising in value. Prices going up is just a matter of economics. But what does this mean to consumers?

Older And Cheaper?

To be fair, the used car price is skewed somewhat; many cheaper used cars are paid for up front, in cash or on credit cards, so we’re only looking at the relatively “high-end” subset of used car purchases. Still, the trends raise a question of what will happen when all these “young” cars return to the market with more miles and more years on them.

The short answer is that no one is really sure, but it will likely have an effect on prices. The best thing to do if you’re shopping for a used car is to factor this into your borrowing; having your financing on hand will make it easier for you to buy the used car you need, especially in a competitive market.

Loan terms are spiraling ever higher, breaking records as more and more of us take longer to pay off our loans both to fit cars into our budget and because we’re keeping them for a decade or more. But in doing so, we’re paying more money for our loans… and the more your car costs, the more is coming out of your pocket.

More Months, More Interest

Recently, analysts broke out the difference between a three-year and a six-year loan, and the results should give any shopper pause. Across eight different categories of car, ranging from compact sedans to luxury SUVs, they found that on average, consumers with three year loans saved at least a thousand dollars… and the more expensive the car was, the more money saved, all the way up to nearly $2500 for SUVs.

Why? The longer your loan term, the more interest you’ll pay for your car. So, you double the amount of time that you pay off your loan, it’s going to ding your wallet. True, on a year by year basis, it doesn’t seem like much; per month, many of these work out to roughly to between $14 and $20 extra a month. But across 72 months, that extra $20 a month quickly adds up.

On the other hand, there’s an excellent reason most of us are willing to pay that premium… and why that premium goes unnoticed by so many consumers.

Cost Effective

The same analysis shows exactly why loan terms are constantly rising. Take that same compact sedan: On a three year term, the monthly payment is $458 a month, but on a six-year term, it’s $253 a month. And the further up the scale you go, the more money you find yourself saving. A luxury SUV buyer can save $500 a month on their payments, at the more extreme end of payments. At that level, it’s not terribly surprising an extra $40, which is roughly how much extra per month in interest you pay, just disappears into the paperwork.

This is part of the reason consumers are opting for longer terms; it reduces the overall monthly payment of the car. As cars have risen in price, consumers who need a car have found themselves choosing between paying a few more dollars over a period of time, or in some cases not having a car at all.

That said, this gap does illustrate a little-discussed issue with longer terms, how much interest you’ll pay, and it should be a factor in how long your auto loan term extends for. Keep in mind, the more interest you pay, the less your car is fundamentally worth; you get nothing back in vale for that interest, as it’s the price you pay to have the loan.

The best way to balance this is to sit down with a loan calculator and run a few numbers. Look at how much you’ll pay not just every month, but across the entire life of the loan. When you get a car loan, you should know exactly how much you’re paying, and where it’s going to.

Shopping for a used car can be somewhat intimidating. If there’s an ever exploding collection of makes and models in the used market, it’s nothing compared to the sheer selection of cars in the used one. Here are a few tips to get a handle on buying a used car.

What’s Your Budget?

It all starts with what you want to pay. The sheer variety of used cars and availability means that you can find a car to suit pretty much any budget. But before you even think about cars, you should have a sense of what you can afford. Look at your budget and where a car payment fits into it, and get quotes on used car financing. Once you know your purchasing power, you’ll be able to use it effectively.

Know What You Want

There are so many cars available that you need, before anything else, to whittle down what you’re looking for. What type of car do you want in your driveway? Are there any extras that you might want to have on board? How “used” should your used car be? What makes and models are you most interested in? A little research now will save you quite a bit of work later, so put in the time and pick out the cars you’re most interested in.

Research Your Candidates

The next step is to look into the specific cars. A used car is a unique entity; it’s been driven for a few thousand (or more) miles, and may have experienced anything from one or two minor dings and dents to being completely totalled and refurbished by a garage. Fortunately, you don’t have to wonder about this; each car has a unique history tied to its VIN number, and you’ll be able to determine which cars have been treated well and which should stay on the lot.

You should also look into your car’s future. While predicting the maintenance and declining value of cars is not an exact science, you should be aware of how much your car will cost you to keep on the road, and what it might be worth when you decide to sell it. Also make sure you look up fuel economy; if gas returns to its record highs, you don’t want to be left with a car you can’t afford to put on the road.

Look Up Dealers

Just like there’s an enormous number of cars out there for you to browse, there’s a seemingly endless number of people selling them, ranging from Craigslist sales to the used-car sections of professional dealerships. No matter who you plan on doing business with, before you so much as call them, look up what others who have done business with them have said. While the stereotype of the shady car dealer is largely just that, it’s still a good idea to know who you’re doing business with.

Be Ready To Negotiate

New cars are somewhat controlled in their pricing; after all, the dealership has paid a set price for the car. Used dealerships have much more latitude, and it’s called an “asking” price for a reason; don’t hesitate to see what a dealership can do for your wallet.

Although there are some mainstays, such as the need for financing important purchases like cars and homes, personal finance trends are changing rapidly these days. Iliya Yordanov, the CEO of MoneyWiz, kindly spoke with us about the current trends in the world of personal finance, why people should feel secure with online banking, and things you need to consider when organizing your financial matters.

Can you tell us a bit about your journey to where you currently are professionally with MoneyWiz?

I and the other co-founders started MoneyWiz five years ago. At the time, we wanted to simply provide finance software that would be fully functional on iOS and Mac and sync automatically. There was nothing like it at the time. That was before the word “cloud” even got popular. We were the first personal finance software with our own cloud sync system.

Through years of evolution and innovation (we were also the first and currently only finance app to offer worldwide online banking), I can gladly say that today, MoneyWiz is a very successful finance software in over 25 countries worldwide.

Why should people feel secure with online banking?

MoneyWiz never stores online banking credentials. Those are stored with our partners. We currently partner with two companies – Yodlee and SaltEdge – which are both great companies that exceed industry standards when it comes to security and handling personal data.

Does MoneyWiz offer solutions to help customers prepare to finance a car?

Yes and no. MoneyWiz is not tailored for any specific finance needs, such as financing a car or a mortgage for example. Instead, MoneyWiz provides the tools to use it for your own needs. It’s easy to organize all financial matters regarding financing a car within MoneyWiz.

What trends have you noticed lately in the world of personal finance?

Most notably, two trends come to mind:

1. More and more people turn to automatic transaction downloads. While I personally understand why it happens (after all, it’s easier), it might also be a red flag indicating that people are less involved in their daily expenses and rely more on reports. While this can be seen as a good indicator in terms of spending capabilities, it can also lead to overspending if one is not careful.

2. A very notable trend we’ve observed was the overall usage and interest in personal finance software. During the years after the economic crisis that started in 2008, personal finance was at a peak. Last year, it was at a low; and this year, it’s picking up again. We actually conducted an analysis on this data and compared public information about online searches and reported sales; and we found out that there is a pattern that shows that economic instability leads to more people using personal finance software (to get out of debt, to control spending, etc) and vice versa.

Do you think the way that people handle their personal finances is changing?

I think the tools are changing, but the core essence of how people do it hasn’t changed. The tools available to people today make it easier, that’s for sure. At the end of the day, though, it all comes down to figuring out a way to earn more than you spend.

What are your plans for the future of MoneyWiz?

We’re currently focused on releasing MoneyWiz 2 for Windows Desktop later this year. That will complete our portfolio on all major platforms – iOS, Mac, Android and Windows. Once that’s done, we’ll focus heavily on introducing new tools and features. We’re also working on a new product that will work very closely with MoneyWiz to provide the kind of financial insight to people that we’re in a position to offer. Most individuals alone would have no access to that kind of financial know-how.

Follow Iliya on Twitter.