What is 100% financing on a car?

What’s 100% financing on a car?

It means the lender covers the entire purchase price—no down payment from you.

Sounds great, right? But beware:

Higher interest rates (because lenders take on more risk) 

Likely to owe more than the car’s worth early on (upside down loan) 

Usually requires good credit to qualify

100% financing can get you in the driver’s seat with no cash down—but it often costs more in the long run.