Buying a car is supposed to be simple, but the truth is that simplicity comes with hard cash. For any car dealer, cash purchases are preferred to any other kind of transaction because it provides that injection of funds – including their commission – they need. Little surprise then that down payments are considered important, but it is possible to get an auto loan with no down payment.Usually, lenders will only provide a percentage of the purchase price, with around 80% the normal amount, and the remaining 20% provided in the form of a down payment usually used to secure the purchase. But the fact is that not everyone is able to save up enough to make such down payments before auto loans are approved.While it is believed by many to be close to impossible to get, approval on loans for cars despite no down payment are not uncommon at all. It is generally a matter of approaching the right lenders and steering clear of the financing services that the dealerships offer.The Importance of Down PaymentsAs mentioned already, down payments are considered by car dealers to be an important part of the whole sales transaction, mainly because they get their hands on some cold cash as a result. This might suggest that auto loans with no down payment are something dealers frown upon.This is usually true, but there are advantages to the purchaser in making a down payment too. The fact is that in making down payments before auto loans means that the size of the loan is reduced.For example, if a new car costing $20,000 requires a down payment of 20%, a lump sum of $4,000 is followed by a loan of $16,000. Obviously, the monthly repayment on $16,000 is going to be lower than on $20,000, so with loans for cars despite no down payment, lenders make a little more. Indeed, in some cases, the larger the down payment, the lower the interest rate.How to Avoid the ExpenseBut there is no getting away from the fact that a down payment requires saving up a large lump sum. That can be draining, and delay the whole plan to buy a new car anyway. For this reason, auto loans with no down payment can be very attractive, even if the interest rates end up being higher.The fact is that money is generally saved because of the poor terms available from financing deals offered by dealerships. Many dealerships actually tag an extra 2% or 3% onto the loan interest rate offered by their financial partners, effectively punishing purchasers for not making down payments before auto loans are applied for.Getting a pre-approved loan from a bank or credit union independently means that such extra costs can be avoided. Such loans for cars despite no down payment can simplify the transaction too, making it almost as attractive to the dealer as a cash sale.Where To GoOf course, getting the right auto loan from the right lender is the important part of the plan. There are plenty of traditional lenders out there willing to provide 100% auto loans, with no down payment a regular preference for applicants. However, banks and credit unions generally set large interest rates.Online lenders generally provide better terms, and with no down payments before auto loans paid, the impact of the loan interest should be calculated carefully. Certainly, shop around online before deciding on a lender.Getting loans for cars despite no down payment is not hard, especially for the more diligent searchers amongst us. But while auto loans with no down payment can be slightly larger, the right terms can make them great deals.