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If you haven’t yet established your credit by taking out credit cards, loans, or other forms of credit, then it may seem impractical at first to secure an auto loan. Whether you’re in college or simply a first time financer, you’re definitely not alone. Thousands of people are in the same situation as you, but that doesn’t mean it’s impossible to buy a car with no credit. In fact, Indy Car Financing can help, and here’s some advice to get you started.
Make a Big Down Payment
Lenders are hesitant to hand out money to someone without a proven track record of credit, but if you provide a larger payment of approximately 20 percent, then you’re demonstrating to your lender that you’re a good risk, since you secured a larger than average investment. Chances are they will be more likely to take a chance on you when guarantee a substantial payment up front.
Don’t Shop for an Expensive Car
If you’re trying to buy a car with no credit and you approach a lender trying to buy a $30,000 car with a small down payment, you won’t be taken very seriously. In addition, buying out of your price range puts you at a high risk for defaulting on a loan, which can seriously hurt your developing credit score. Avoid these rookie mistakes by finding a much more affordable vehicle.
Take Advantage of Special Programs
Make sure to find out about special rebates and incentives, as well as exclusive programs that you might be able to take advantage of. Many dealers have special offers for:
- First time buyers
- College students and recent grads
- Military service personnel and families
If you fit into any of these categories, do your research to see if there are any special pricing or available financing programs going on.
Decide on a Lease Instead
Taking over someone’s lease is a very viable opportunity for people establishing credit because lenders see the risk as being much lower. Oftentimes, you can take advantage of lease-to-buy programs, which give you the opportunity to lease for 24 or 36 months before giving you the option to finance the vehicle.
Stop in to See Your Lender
If you want to buy a car with no credit, visit Indy Car Financing and talk to one of our financing specialists in person. Our experts have years of experience and many resources to help make your auto-financing dream a reality. Once you’ve done all of your research and gather the necessary paperwork, meeting in person shows you’re serious and you’re ready to make a responsible investment in your future. If you’re in the Indianapolis area, come take advantage of the competitive auto financing available at Indy Car Financing. You can also speak to one of our experts by calling (855) 468-6215.