I want a new car and I have no credit. I have no co-signer. What do I do?

Question

I have contacted many dealers and banks and all of them told me that I needed a co-signer. I have no one to do it for me. This is a very large problem because I need a car. I really don't trust the used car places. What do I need to do so that I can get a car by this summer?

Answer 1

Establish your credit with a used car first, pay it on time every month and that will prove to banks that you are creditworthy to purchase a new car..Do that for a year and you should have no problem buying a new car

Answer 2

Unless you have an excellent and consistent employment history of say 3 years with the same employer and have an income of at least $30,000 or more with minimal other debt, you are going to need a co-signer.

Another option, since you do not have a co-signer, will be to place a substantial down payment of say 30% of the value of the new vehicle. You will also have to prove your ability to make the monthly car payment and maintain full coverage insurance.

If this is your first auto purchase, and you do not have someone to co-sign, you may want to start with a used car. Many new car dealerships have used car departments and some of these used vehicles still have much of the warranty remaining on them.

This is a large investment so you may want to pay a professional outside of the dealership to perform a diagnostic test on the used car to reassure yourself that it is mechanically sound.

Beware of 'used car lots' that have no new car inventory. They may be able to approve you with what is called a 'sub-prime' lender and if you are willing to pay up to 35% interest, it might be for you. However, I strongly advise against this as you may be paying 3 times the value for a vehicle. And in some cases, they sell vehicles that other dealers don't want.

Try asking close friends that you trust or family that have a second car that they may let you use while you save and build your credit.

DO NOT rush into a vehicle that you cannot afford. The results can be disastrous and will stay with you for many years to come.

Answer 3

Yeah sure, I will co-signed for you. However, first I need to know why none of your family or friends offer to do it? Could it be because they know you too well and that they do not trust you?

There is no shame in driving a used car. Just remember that as soon as you drive a new car out of the showroom, it becomes a used car.

Answer 4

Well, if you are looking to dealerships and banks with no credit, you will not be approved on your own. You must start to build credit somewhere and a used car would be your first step. Most finance companies will not be willing to take a chance on someone who isn't "long in the tooth" when it comes to credit history. You might have to sweeten your chances by opening other tradelines as well. Try a secured credit card or two and ask your local bank for other credit building strategies. If you live with your parents or someone who has utilities (and they are responsible) ask them to allow you to put the gas bill in your name just for credit building purposes.

Answer 5

You want a NEW car and you have no credit and no co-signer!

If you don't have the money for a car. - Save and walk or take public transportation.

Answer 6

I have placed this in the source box. There is a wealth of information there and a great free debt management software program. I bookmarked the site as I return to it often for the advice it offers. I hope this helps you.

Answer 7

Check your newspaper's classifieds for car listings. Or else look at Cars.com, Autotrader.com, Yahoo Autos.

Plenty of great cars are out there. You don't need a new one.

Answer 8

Try the below website