Auto Loans for First Time Buyers

Auto Loans for First Time Buyers >> Apply for your First Auto Loan <<

Welcome to First-Time-Auto-Loans.com, the premier resource for first time car buyers.  The automobile has long been an integral part of American culture, and experiencing the freedom of the open road in your own vehicle is a milestone no one forgets.  But securing an auto loan the first time around can be difficult.  That’s where we come in.  First-Time-Auto-Loans.com is designed to take the hassle of out of first time financing.

No Credit History?

If you’re a first time buyer with no credit history on file, don’t be overly worried about your auto loan prospects.  Most first time borrowers have not had the time and experience to establish credit.  In this case, we advise you choose one of three options:

  • Get a No Credit Auto Loan from a Subprime Lender
  • Get a Trusted Individual with Good Credit to Cosign your Loan
  • Establish Credit History via a Gas or Credit Card

First Time Loans from No Credit/Subprime Auto Lenders

There ARE lenders who will approve your auto loan even though you do not have credit.  What’s the catch?  High interest rates.  Because no credit reports can vouch for your financial trustworthiness, you represent a higher risk to lenders.  Just like you, lenders are cautious about lending money to people they do not know.  Therefore, they charge high interest rates to cover their risk exposure.  That said, getting a no credit auto loan from a subprime lender is the quickest and easiest way to get the money you need.

>> Click Here to Apply for a No Credit Auto Loan

Cosigned Auto Loans for the First Time Buyer

A cosigner is an individual who agrees to share your debt.  In the event that you cannot make the payments on your loan, the cosigner becomes responsible for paying it off.  The advantages of a good cosigner are very significant:  when a person with solid credit history agrees to cosign your auto loan, approval becomes much easier and interest rates go down.  For many first time buyers, the cosigner is a parent or guardian.  In the case that you do not have any source of income, such as a student with no time for a part-time job, a cosigner can make the whole auto loan process MUCH easier.

That said, the cosigner’s responsiblity should not be taken lightly.  Although your parent or other cosigner may trust you to make all of the payments on your first auto loan, there are other factors involved.  For instance, having an additional loan under your parents’ name could make it more difficult for them to secure their own personal lines of credit in other areas.  Lenders get worried when they think an applicant may be overtaxing their income and assets with multiple loans.

Still, getting a cosigner is probably your best option as a first time auto loan applicant, especially if you’re a student with little to no income.  You will get lower interest rates, easier approval, and the added security of having someone to share your debt.

>> Click Here to Apply for an Auto Loan with a Cosigner

Establishing Credit History for the First Time

If you don’t want to pay high interest rates and you don’t have a cosigner, you can always work to establish some credit.  Not only will this help you with your first auto loan, but good credit history helps with rental applications, jobs, and other aspects of life.  Unfortunately, establishing credit takes time.  The easiest and quickest way to do so is to apply for a credit card or gas card and make all of the payments right on time for about six months or so.  The three major credit bureaus will reflect this to auto lenders, thereby increasing their confidence in you as a borrower.