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Getting an Auto Loan With No Credit

Getting an auto loan with no credit seems back-breaking but we are here to show you exactly how you can do it without worrying. The first thing to bear in mind is this: lenders give auto loans to those with no credit; so now that we have checked that off our list, let’s get you settled on how to score an auto loan with zero credit.

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What to do to Get an Auto Loan With No Credit

Get pre-approval from a lender (physically or online) before heading to the dealership; doing this gives you a comparison edge (this simply means you can look through different auto loans before choosing to go with any instead of having one tossed at you).

Beyond the edge of comparison, this gives you, it gets you on the negotiation table for better pricing on the car you have in mind.

Pay a good down payment for the car. A good down payment is a sign of good faith communicated to the lender or dealership that you are capable of repaying the auto loan; 10% of the value of the car is a good starting percentage. If you do not have about 10% or more to put as down payment, trading in your current car would help reduce the amount of auto loan.

The car you choose has to match your budget. For all the time you will spend processing an auto loan pre-approval/approval from a lender and talking with a dealership, like Automania, do not have your dream car in mind since you have no credit. In this scenario, the service the car will provide to you matters more than the car of your dreams because at the end of the day, when you walk out of the dealership, what counts more for you – and your dream car – is the promptness in monthly loan payments, building your credit history and subsequently, increasing your credit score.

Pay the high-interest rate. You simply cannot get a more reduced interest rate because you are considered as a borrower that is high risk i.e. you can eventually default on the loan repayments. However, take the high-interest rate you are offered after shopping around different lenders and/or dealerships for a great deal; then be prompt in monthly repayments and go for an auto loan refinancing after a year or two.

While it is easier to get someone else, say a loved one, to cosign an auto loan for you so that you can get better interest rates, we do not recommend doing so. It is best to think long-term over the short-term. Short-term equals getting someone to cosign an auto loan when you have no credit in order to get affordable interest rates; long-term equal using the period of high-interest rates repayment to build your credit history and credit score.

If you have no credit, come to us at 5511 Northern Blvd Woodside, NY 11377 or call Sales on (718) 255-1353. We will get you an auto loan.

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