Buying a car can be difficult if you don't have credit. And there are plenty of traps to fall into that could lead you to pay much more than is fair for that car. But it isn't impossible, and if you're in the position of needing a used set of wheels with no credit, here are a few tips that could help you out.
Know what kind of car you want and what you can reasonably afford. Can you put a lot of money down? It's worth it to plan out as closely as possible what you can really get before being dazzled by the cars on the lot.
Look into third-party lenders so that you have something to compare with what a dealer might offer you. Know the best rates you can get -- often this is more financially advantageous that what the dealer's finance team will offer you. On top of that, you'll be more familiar with the terms and conditions so you don't get taken for a ride.
This includes proof of income and employment, and answers and proof for everything the dealer or lender could possibly ask. Gather up pay stubs, utility bills, bank statements and even any favorable recommendation from an employer to show that you are in fact good for the money.
Before walking in, it's worth seeing if someone you know would be willing to co-sign for the loan if it comes to this.
Use the Internet to find reputable dealers with a good selection of cars and lending options. Steer clear of the nameless car lot down the street that proclaims "No credit? No problem!" Spend lots of time doing your research and finding what car you really want and can afford so you don't settle for something that may belong to an unscrupulous dealer.
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