Can You Buy A New Car With No Credit? – Talk To An Expert
Can I buy a new car with no credit? This question seems to rattle a number of first time car buyers. The answer is yes, you can. But, you need to know the nuances of you can get a car loan when you have no credit to show. There are a few simple methods to help you buy a new car.
An effective way to counter lack of credit is to save up for a significant down payment. For instance, if the standard down payment is 10% of the vehicle price, you may need to pay up 20% so that the lender is ready to finance the car for you. So, you can put your question “Can I finance a car with no credit?” to rest.
Can you buy a new car with no credit with financing from your bank? This depends on your bank. Usually, traditional lenders such as banks and credit unions do not deal with risky customers such as those with no or poor credit. But, that should not stop you from exploring with your bank. There is a chance that you may be rewarded for being a loyal customer and that the bank might be willing to take a chance with you.
You may opt to lease a vehicle as the requirements for leasing are easier than purchasing. Many people with no credit choose to get a cosigner to get a car loan approved. A cosigner usually enjoys a good credit and has a steady monthly income. But, in case you slip on the repayment, lenders will go after the cosigner to recover the loan and in the process damage the cosigner’s credit. Often students choose the cosigner way to get approved for no credit car loans for students.
One of the most effective methods to buy a car when you have no credit is to pay in cash. Save enough money to get as close as possible to the sale price of the car. You may even be able to negotiate a lower price as the seller gets all the money upfront without any worries of defaults later on. Remember to calculate the total price of the car, which includes insurance, taxes, registration and other expenses so as to evaluate its affordability. So, don’t ponder over the question can I buy a new car with no credit, get started and drive home in your own car.