Did you know you don't need credit to buy or a lease a car?
Banks have programs all the time for first time buyers.
It's perfect for college students who are in need of a reliable new car.
What is a First Time Buyer Program.
The first time buyer program is a loan given to individuals who have never purchased a car using their credit. That could mean you do have credit history like a credit card but no auto history. Or that could mean you have never used your credit for anything and have no history. It's all the same.
Credit is your ability to borrow money or get something now (like a car, house, or credit card) with a promise to pay later.
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What is Auto History?
If you bought a car with financing, that loan shows up on your credit report.
Leases also appear just like loans — as an installment account.
This shows:
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Whether you paid on time
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Any missed or late payments
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If the account was ever sent to collections
Banks look at your auto history to approve you for auto loans. However when you are qualifying for a first time buyer program having auto history is not a requirement.
What's needed for a First Time Buyer Program
Do you need a Job?
Do you need a down payment?
Can you buy any car?
How to get started?
No you don't always need a job. What banks need to see a steady source of income every month showing that you can afford the car payment. That source of income of course could be a job but it could also be a monthly allowance, household income, trust payouts, or investments . What is important is that source of income needs to be provable either through a paystub, taxes, or bank statements.
Not always but banks want to see at least 10% as a down payments. If you don't have 10% you can pay less by negotiating a bigger discount with the dealership. The bigger the discount we can negotiate for you the less you have to pay.
No, when you are qualifying for a first time buyer program you have to be reasonable . You could buy or lease something new and reliable and that looks good. Something unreasonable would be something like a very expensive vehicle that doesn't fit your budget. After you have completed 12 on time monthly payments, you are no longer consider a first time buyer. At that point feel free to trade in your car and upgrade it to something you want.
Contact us and we help you every step of the way. We do all the hard work so that you don't have to. We have the right network of dealerships with the best first time buyer programs.
