Many teenagers would be wondering if the car loans without credit history are possible or not.The truth is something different that cannot be said in a single word - yes or no is not possibly the answer to this question.It depends on the financial situation of the borrower – remember that since the car loans are not given very easily by the lenders to people who have not proven their credit worthiness,you have to at least provide a cosigner or give a higher down payment.There are some solutions for people who do not have much savings in their bank account and want to get the no down payment car loans instead – one such solution is to opt for the dealer financing.Dealer financing is not preferred by many people because of their higher interest rates.Dealers are going to charge you much more than what a regular bank is going to offer.So think twice before getting the car financing through the dealers.Of course i understand that people will have more gravity towards the BUY HERE PAY HERE CAR LOANS but think again – are you going to lose so much money in the form of interests for getting the car loans through the dealers?
Other options for the car loans without credit history?
=>Like i said earlier,provide a credit worthy cosigner and i am sure that you would have increased chances of approval,
=>Car loans can also be obtained through the credit unions.This is why i always have a good long term relationship with the credit unions.The fact that there are many credit unions are always have a great advantage to people who are in the need of cash for emergency or for other funds,
=>Another points is – why not wait for a little longer,establish a credit history and then get the car loans.Understand that getting the car loans with not so good credit is either going to be hardest or is going to make you lose lots of cash in the long run.So the best way would be to start your strategy to improve the credit and once you have established the credit,get a car loan.
