Ways & How

how to finance a car with no credit

how to finance a car with no credit

You cannot have and at the same time enjoy your dream car for free because in these days nothing comes for free. It is either you purchase it in cold cash or you pay in installments. It all depends on the agreement that may arise between you and the car seller. At this point, you might be wondering how to finance a car with no credit. That is what we are going to discuss now. The business world is not that easy to deal with. Businesses engaged in money lending are normally very careful with their clients to the extent that they tend to discard borrowers who have nothing much to offer in return, especially in terms of paying their debts. This goes to saying that many people nowadays are having a hard time finding a good financial source. But don’t lose hope because, at any rate, there are still options available so you can still finance your dream car. Let us explore those options:

  1. Make a loan from your family, relatives and friends. So far, amongst the options we will tackle now, this is the easiest, most workable, and most feasible.

    Ask your father or mother to lend you the amount needed with a promise that you will pay them slowly with much lesser interest or with no interest at all. That’s possible mind you. The beauty of borrowing money from people close to you is that you may not be subjected to a shocking interest rate.

    Ask your trusted friends to help you out. With them, you will not be paying any amount for the down payment nor would you need to have any credit check for that matter. To secure them, you can practically issue a promissory note with provisions that are not so strict. In the note, you can bargain for a lower interest rate like 0.5 percent or less per month. That’s only six percent per annum.

  2. Find a seller who would agree on an installment payment. This refers to a private seller who must be a person already known to you. Knowing the person may land you a better deal. Remember, most sellers are smart enough that they will never engage into anything without reducing the agreement into writing. Hence, you should prepare ahead with your terms. Negotiate as much as you can. Try to avoid a down payment if possible.

  3. Engage into the old concept of barter trade. This is still very much applicable today, especially if you are more than willing to let go some of your priced possessions. You can also offer you personal services. Let us say your long time neighbor is planning to migrate abroad with the entire family. In exchange for their car, you can barter your brand new laptop, which they can easily carry wherever they go.

    In addition to that, offer your services like looking after their house while waiting for a potential lessee or buyer perhaps. Furthermore, you can ask your neighbor to execute a Special Power of Attorney, making you as an agent to sell the house on their behalf without receiving any amount of commission or broker’s fee in return. Bingo!

  4. Find a good financing institution. Companies and firms engaged in the financing business have the practice of running the credit record or credit status of their clients. In your case, you can still avail of their services, but you should expect that the interest rate will be a little higher and the borrowing terms will be stricter and stringent on your part.

Your dream car will no longer be a dream as long as you are resourceful enough to learn how to finance a car with no credit. These four items we talked about are just a few of the many options you can venture into. Good luck and have a great buy!


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