Two-wheelers are known to offer great flexibility on the roads and good fuel economy. Because of these benefits, scooters are quickly becoming popular. That said, a scooter can still be a major purchase. That’s why one may have to rely on an auto loan, which can come with an upfront down payment requirement, holding one back from buying a scooter. Fortunately, there are other ways to get a scooter without a down payment.

1. Apply for an unsecured personal loan
An unsecured personal loan is the most flexible among the various auto financing options. That’s because to get a personal loan, one does not need to make any upfront payment on the purchase of an automobile. Second, these loans come with no collateral requirements. Finally, unlike motorcycle loans or car loans, personal loans can be secured without one having to disclose what they plan to do with the money. So, once the loan is approved and the amount is disbursed, one can use the funds to buy a new scooter. That said, when applying for a personal loan, one will still have to undergo a credit check to assure the lender that they can repay the loan. A good credit score is also a way to get low interest rates.

Irrespective of the credit score, one should shop around before applying for a personal loan. One can also consider a bank with which one already has an account, as it is likely to offer lenient terms on a scooter loan. Approaching different lenders, from banks to private firms, can help one choose an option with the most favorable terms.

2. Use a credit card
Another viable way to get a scooter without a down payment is to pay the seller using a credit card. For this, one would first need to ensure that their card comes with a credit limit and spending limit that can accommodate this purchase. If not, one should request the card issuer to increase the limits. After that, one must find a dealer that accepts credit card payments. Then, one can use a credit card to pay for the scooter and pay the card bill later. One thing to note is that when buying a scooter in monthly installments using a credit card, the interest rates can be higher than those on regular loans. So, with this option, one would have to account for the overall cost or look for a low-cost installment plan.

3. Consider credit unions
Apart from banks, one can also approach a credit union to apply for a loan . A credit union is a non-profit cooperative that only lends money to its members. So, to be eligible for such a loan, one would need to be a member of the credit union . That said, the key benefit of borrowing money from a credit union is that one gets a much lower interest rate than from banks and private lenders. Also, if one has been a trusted credit union member, they can request the firm to issue a loan without any down payment requirements.

4. Trade in an old scooter
Using the trade-in value of an old scooter to buy a new one can be a great way to save money on the down payment. This is because the trade-in value here would be considered the down payment for the new scooter. That said, before selling the old scooter, one should maximize its trade-in value by improving its overall condition. Here, one can check for any issues with the scooter and get necessary repairs. This can help boost the scooter’s selling price, and the higher the trade-in value, the less one needs to pay for a new scooter.

5. Consider peer-to-peer lending
Those with a bad credit score might find it difficult to get a zero-down payment loan with favorable terms from banks and private lenders. In such cases, one can ask friends or family members to lend money for a new scooter. Here, one would not need to undergo credit checks or make a down payment to borrow from peers. Additionally, one may not even have to pay interest on their repayment. If considering this approach, one must discuss the repayment terms and monthly installment amount with the lender. This conversation will help the lender and borrower avoid awkward conversations and disagreements during repayment.

6. Look for dealership and manufacturer financing options
Many motorcycle and scooter dealerships offer financing options through their lending partners. So, one can consider applying for an auto loan directly from the dealership. One can also request the dealer for a 100% financing loan, i.e., a loan without a down payment requirement. Here, too , approaching different dealerships and comparing loan terms can help one find the best option. Besides dealerships, scooter manufacturers can also offer financing options to their buyers. So, one can specifically choose models that come with manufacturer financing to get a scooter without a down payment.

7. Consider private lenders
One can also consider applying for a loan from private and online lenders who may agree to offer an unsecured loan without any down payment requirements. That said, these lenders tend to have strict loan eligibility requirements. They may only offer loans to borrowers with a good credit history and a high credit score. Another thing to note is that one must avoid malicious lenders when considering this option. Suspicious firms or individuals can be scammers offering unrealistically good deals, like instant loans without credit checks.