If you have never purchased anything on credit, then your credit score is zero. Without a credit history, it can be difficult to get financing for your first new car. Lenders can be reluctant to take a chance on a borrower with no credit history unless they can get a cosigner for the loan. The following are a few tips to help you finance the purchase of a new car without first establishing a credit history or finding a cosigner for a car loan.
Choose a low-priced and slow-selling model
The first thing you need to do is identify the lowest priced vehicles on the market from each car manufacturer. From this list, you need to focus on the most unpopular models for sale. These are the cars that are not selling well, so dealers are motivated to ease the standards for financing a new car. Many of these dealers may carry their own financing, thereby giving them more flexibility over approving a loan. If you focus your efforts on the slow-selling and low-priced models, you will be giving yourself the best chance at success.
Ask about first-time buyer programs
There are new car dealerships that have first-time buyer programs that are specifically designed to sell to those who have no credit history. The interest rates will be higher than for those with a credit history, but there is a good chance you can qualify to get a new car. Naturally, you will need a down payment, and sometimes this may be higher than for those with a good credit rating. There may also be requirements for the length of time at your current job and income, but at least you have a path to get a new car.
Let the car salesman sell you a car
Once you have identified the model of car you will attempt to purchase, then select the car dealership and plan your visit. When you arrive on the car lot, let the salesman know your situation. When asked about your credit, tell him that you have no credit history and are a first-time buyer. If it is possible for the salesman to get you a new car loan, he will not let you walk off the lot empty handed.
Keep in mind, that you are trying to finance a new car without credit; therefore, you are not in a negotiating position. All you are looking to do is find a new car that a dealer is motivated enough to sell on credit to someone without any credit history.
