I have no credit history and I want to finance a car from a dealer. I have no one who can cosign for me and I would like to know if anyone out there knows of dealerships or lenders who don’t require cosigners for people with no credit history like me. I work full time and have enough to cover payments, insurance, etc.
Do All Car Loans And Finance Companies Require A Cosigner?
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Would you really lend a large amount of money to a total stranger who had no way of proving he was able to pay it back?
Any type of loan is a risk for the lender – he is taking a chance on you.
A credit history proves you are a responsible person who has proved he can handle credit.
If you have no credit history, you have no proof that you are a responsible person and that is why a co-signer is required.
If you did find a lender willing to finance your car, his rate of interest would most likely be higher than average to compensate him for the enormous risk he is taking
A cosigner will likely be required as you have not established enough credit history to prove you’ll pay your bills. The biggest exception is if you have a massive down payment – to the tune of 50% – 70% of the value of the car. This will put you in good favor with the lender even if your credit history is limited, but it’s not a guarantee.
Volkwagen Credit has a first time buyer and college graduate program, and Audi financial has a recent College grad program. There are stipulations for both, but they don’t require a cosigner. May be something for you to look in to.
Financed cars is more expensive to insurance cause it requires full coverage. You can compare how much you would pay for full coverage of this car using this tool – carinsurance.deep-ice.com
Best thing would probably try to find a car you like at a “Buy here, Pay here” dealership. Thats what I did for both of my jeeps and you dont have to worry about credit
if you don’t qualify without a co-signer, you can’t afford the car..
if you have worked the required amount of time and make enough money you can finance..
If you have a membership at a credit union, get your financing there, it cheaper, and they won’t worry about credit history…
a good sized down payment gets you farther along also…normal dp is 20% of final price, if you can up it to 30-40-50% it will be easier..
If you still can’t qualify look for a less expensive car…
your best bet is usually a 3-4 year old car in the 10-15k range….
JIM nailed it.
I would only ad that buy here pay here dealers don’t just overcharge in interest, but also the car price.
They regularly charge 2-3 times the cars value because not a single one of their buyers has the ability to question it. They have to take what they can get.
Build your credit history. Save for a large down payment.
AVOID buy here pay here lots.
I have no credit history and I want to finance a car from a dealer. I have no one who can cosign for me and I would like to know if anyone out there knows of dealerships or lenders who don’t require cosigners for people with no credit history like me. I work full time and have enough to cover payments, insurance, etc.