How can I get a car loan with no credit?
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Is it possible? Where do i apply for one? How much would the interest be? Is it better than a "in house finance" car dealer? I don't even want a full loan (I mean if its possible great but if not its ok) I just want at least $2,000 USD loan for a down payment on a $6,000 USD car. I'm 17 years old, I plan to do all this when i turn 18 which will be in a month. I have a job and make around 600 bucks a month not much but do not have any money wise responsibilities, therefore all the money would go towards my car, and insurance and any left over would go into the bank when i open an account. Any tips for a first car buyer? My plans are going for a 2001-03 Toyota Celica. Do you think it's a good choice as a first car? If not what do you recommend? Thanks.
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Answer:
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Other answers
Asking someone to loan you $2,000 for a down payment on a $6,000 car is the same as 100% financing on a car and I doubt there is anyone who will loan you the down payment money unless you have a well established credit history and a very good credit rating or unless you have a co-signer on the loan who has a well established credit history and a very good credit rating. My advice is that you establish a savings plan to accumulate a down payment and then look for financing at one of those "buy here, pay here" dealers. Maybe check out J.D. Byrider.
First of all, how are you going to pay for the other $4000.00? The bank will want the car as collateral, and so will whoever loans you the other $4000.00. If you have no credit, you will probably need a co-signer such as a parent or guardian. Your debt to income ratio will play in including what the car note will be. Unless you are established personally with a bank or your parents are, you may as well do it at the dealership as they have more connections. Interest will be higher that for someone on their own with established credit. I think celicas are good cars but doubt it's worth $6000.00. If this is not a mainstream dealer he is probably charging alot more than the value, like the $2000 is probably what it's worth in case you skip out. Be very careful or you will mess your credit up early.
Get a credit card and use it every month . Pay if off on time and then ask them to give you a credit limit of 3,000 . If possible see if you can get a zero percent credit card and transfer over the 2,000 from one credit card to the next. I bought my first used car using a credit card . Go with american express or capital one.
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