subject: Buying A Car With No Credit History [print this page] If you have always paid for things in cash, you may find yourself in need of a car without any credit history to back up your loan. Surprisingly enough, it can be just as hard to get a loan for a vehicle when you have no credit as it is when you have bad credit. This does not mean you are without options though. You can always look into dealerships with special financing available who can help you get a loan even in your situation. Some places actually specialize in this area of financing, and they can be a tremendous help to you when you need a car. Here is a look at just how this process works.
A lot of dealers actually work as lenders as well, giving you a chance to get financing directly from the place you will buy the car from. This is known as buy here pay here lending, and it could be available in an area near you. With this setup, the dealers do not have to abide by the stringent requirements of their lenders to get you a deal. All they have to do is trust that you will make the car payments. If you can provide them with evidence that you can, you should have no trouble getting some sort of financing.
The big thing with dealerships is selling cars. That is the only way they make money. Thus if there is a way to lend you money despite your lacking credit, they will do so. Having no credit is not as bad as having bad credit. You will at least have that working in your favor. Establishing a loan with one of these buy here pay here dealers may give you the chance you need to start building up your credit so you can qualify for a car more easily in the future.
The main thing you need to remember is to find a deal on a car that works within your budget. If you start missing car payments or come up consistently late with them, that will reflect on your credit report. Tough times happen to everyone, which is why you need to logically budget yourself and get a car that you can afford. As long as you stay current on your payments, you will have no trouble building credit and a good lending relationship at the same time.
