There are plenty of options out there for car loans for people with bad credit, and some of these rely on the borrower having a sizeable car loan down payment. Typically, a down payment of 20% or more can help improve your chances of loan approval, even with bad credit. However, not every bad credit loan relies on this; some lenders will still approve bad credit borrowers even with zero money down. These lenders may ask for some form of collateral, or, depending on the size and term of the loan, they may charge a higher interest rate.