Buy a Car with Zero Down Payment

Many people in the market for a new or used car are not buying their first car.  No, they have a vehicle which they want either to sell first on the private market, keep around for as a hand-me-down, or trade-in at the dealership. 

One option is to sell you vehicle on the private market, where you will typically get the more money than you would be offered from a dealer.  That said, there are often advertising expenses -- and certainly time -- required to successfully sell a car to a private buyer. 

Another option is to see what you can get from the dealer in trade.  Now, what some dealers will do is this:  even if your trade-in is not quite worth the minimum down payment amount required by the lender, they will give you more for the vehicle than it's worth.  This will allow you to make your down payment.  Of course, the dealer doesn't do this out of the pure kindness of heart.  He will make sure the additional cash he gave you in trade equity goes into the increased cost of the car you're buying.  That way things are even, but you satisfy the lender's down payment amount without having to dole out cash from your own bank account at the time of purchase.