If you have no credit history and need to buy a car, getting a cosigner with good credit is one way to obtain auto financing. However, there are many people who either don't want to use a cosigner or don't know anyone who is eligible to fill the role.
Fortunately, getting an auto loan with no credit and no cosigner is possible. There are special finance lenders that look at factors beyond an applicant's credit in order to approve them. Of course, even special finance lenders have certain requirements that must be met. But even if a buyer can't meet all of these stipulations, another option remains.
Getting an Auto Loan with No Credit and No Cosigner
Special finance lenders cannot be reached directly. Instead, they work with dealerships that are able to assist bad credit and no credit buyers. Typically, in order to offer financing, these lenders will need proof of the following:
- A regular, garnishable income of at least $1,500-$1,800 (pre-tax) a month. This can be verified with recent paycheck stubs.
- Residency (a utility bill addressed to the applicant)
- A valid driver's license
- Phone service (Most lenders will want to see a recent phone bill for land line service or from a major cell phone carrier. A "pay-as-you-go"plan does not count.)
Or, if you are a purchasing your first car and meet certain job and income requirements, you may be able to take advantage of a first-time buyer program. Several manufacturers offer such programs, so check the web for details. There are also financing programs for college students who have little to no credit history.
But if you don't meet special finance requirements and fail to qualify for a first-time buyer program, the Buy-Here-Pay-Here dealer option remains. These types of dealerships are able to extend financing to almost any consumer who can afford a car payment.
No Credit, No Cosigner Financing at a Buy-Here-Pay-Here Dealership
Sometimes called Tote the Note Dealerships, Buy-Here-Pay-Here (BHPH) dealers do in-house financing. This means that they supply the funds for the loans they provide without the use of a third-party lender. It also means that they can extend financing to anyone they choose, regardless of credit history.
In fact, most BHPH dealers don't even run credit checks on their customers. They are, rather, more concerned with whether or not a buyer has an income that can support a car payment. So, if you want to purchase your vehicle from a BHPH lot, you will need to provide proof of your income. Also, you will be asked to verify your home address and produce a valid driver's license.
After getting approved to buy your car, the following is to be expected:
- You'll probably have to make weekly or bi-weekly payments, most likely on your paydays.
- Most BHPH dealers ask buyers to pay in person at the dealership.
- Many of the cars sold at BHPH dealerships are equipped with GPS devices and "kill switches" that can disable the vehicle remotely. So, if you miss a payment, the dealer can render the car useless until you pay. Or, if you don’t pay, the GPS allows them to find the vehicle in order to repossess it.
Before deciding to buy from a BHPH car lot, you should make sure that your expectations are realistic. Most of these dealers stock older vehicles with higher mileage. So, you may not get your dream car. Also, BHPH vehicles tend to be expensive for what they are. But if you make your purchase from a dealer that reports loans and timely payments, you will have an opportunity to build your credit.
Explore Your Options with No Credit Auto Loan Assistance
If you have no credit or bad credit and no cosigner, don't immediately assume the worst. There may still be auto financing options available. And Drivers Lane can help you find these options through our proven process.
We can match you with a dealer in your area that can work with unique credit situations. Finally, you'll get a fair chance at getting financed even if you've been turned down before. Our service is also free and comes with no obligations, so you have nothing to lose. You may, in fact, even be able to buy your car with little or no money down.
Go ahead and fill out our simple and secure auto loan request to get started today.