How Do I Buy a New Car With No Credit Available to Me?

Buying a new car is often difficult. In a poor economy, it can be difficult to obtain a loan. For someone with poor or no credit, it is nearly impossible. However, don't give up just yet; there may be light at the end of the tunnel.

How to Buy a New Car With Poor or No Credit

If you have bad credit or no credit history, you may be able to purchase a new car with the help of a co-signer. A co-signer is someone who accepts responsibility for repayment of credit or a loan along with the primary borrower.

In order to find a co-signer, make a list of everyone you know who you suspect has good credit. Then, go through that list and remove the names of the people you know will not act as a co-signer for you. Take the list of remaining names, starting with the person most likely to co-sign for you, and ask them if they are willing. Continue to go down the list until you find someone willing to help you.

Once you have a willing co-signer, take them with you to a dealership to find the vehicle you are interested in purchasing. Advise the salesman of your situation before the application process begins. This way they can acquire all of the necessary information from you as well as your co-signer. If the co-signer has a favorable credit history, in all likelihood, you will be approved for financing. Upon your approval, you can complete the application process. Once the process is completed, you will be the owner of a new vehicle.

It is important to keep in mind that your co-signer has taken on a heavy burden of responsibility. If for any reason you do not make your monthly payments as agreed upon in the terms of your loan contract, it will fall on your co-signers shoulders to do so and could potentially harm their credit. If you are not 100 percent sure of your ability to make your loan payments, you should not ask someone to do you the favor of co-signing on a loan with you.