Types Of Loans Available To First
Depending on what kind of car youre buying and your own personal financial situation, you may want to consider one of the following loans:
- Car loan with a cosigner. If this is your first time borrowing, you might have an easier time qualifying if you apply with a cosigner.
- Student car loan. Some lenders like Boro offer auto financing specifically for students. Instead of considering your credit score and monthly income, these lenders typically look at your overall financial health and academic record.
- A secured personal loan. With a secured personal loan, you can use other assets besides a car as collateral and borrow more, but still get the same competitive rates.
- Unsecured personal loan with a cosigner. Dont want to risk losing your car? Consider an unsecured personal loan. Keep in mind that youll typically need good credit and might need to bring on a cosigner to qualify.
Auto Loan Payment Calculator
First-time auto buyer program available to qualifying members, based on approved credit and other established requirements such as a verifiable employment record or seasoned funds on deposit. Qualifying members without an established credit history may qualify for a tier-4 rate, with possible rate adjustments after six consecutive months of on-time payments. A qualified co-maker on the loan could help reduce the rate, as well help determine the dollar amount of the loan and loan-to-value limits.
In accordance with the Credit Card Act of 2009, members under age 21 must show proof of ability to pay and/or have a qualified co-signer over the age of 21 to be eligible to receive a VISA credit card or debit card with overdraft. Members under the age of 18 who are students may be eligible for all or portions of the student checking program with a qualified co-maker 21 years of age or older.
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How To Get A First
Follow these steps to find a car loan when its your first time financing a vehicle.
1. Check your credit
You can easily check your credit using a budgeting app like Mint or through other online sites. If you dont have a credit score or yours is below 670 what most lenders consider to be good credit you might want to consider applying with a cosigner.
2. Go over your budget
Specifically, figure out how much money you have available after covering essential costs each month, such as bills and food. Use this number to help you figure out how much you can afford to repay each month on your car loan. Ideally, you should leave yourself some wiggle room for miscellaneous purchases and emergencies.
3. Compare cars
Use online sites like Kelley Blue Book or Edmunds to figure out what type of car is in your budget and what you like. You can use this to narrow down dealerships or decide if you even want to buy from a dealership. If possible, check how much different sellers are charging for that car so you have a solid basis for negotiation.
4. Put money aside for a down payment
If you have the time, make sure you save up to make at least a 20% down payment. This will save you in both the short and long term. A smaller loan amount means lower monthly repayments or an interest-saving shorter loan term. And you wont have to ever pay interest on the money you pay up front.
5. Compare lenders
6. Get preapproved
7. Buy your car and sign the documents
Working With The Right Lender
When it comes to financing the vehicle you need as a first-time buyer with zero credit, it’s important that you work with a lender that knows how to handle credit challenges. Known as subprime lenders, theyre third-party lenders that are signed up with special finance dealerships, although not all dealers work with them.
The reason it’s important to apply with a subprime lender is that they take into account factors in addition to your credit score when they’re considering you for an auto loan approval. These lenders look into your ability, stability, and willingness to complete a car loan by including a list of qualifications you need to meet in order to be considered for financing.
The specifics vary, but subprime lenders typically require:
- Proof of identity A valid driver’s license proves this must be current, not revoked, suspended, or expired.
- Proof of income A minimum monthly income of around $1,500 to $2,000 a month before taxes from a single source. Bring in a computer-generated check stub showing year-to-date income to prove it.
- Proof of residence You can prove this with a current utility bill or bank statement to your address in your name.
- Proof of a working phone A current telephone bill for a landline or contract cell phone in your name.
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Buying Your First Car From A Private Seller
Youve been looking on third party marketplace sites and you’ve found itthe perfect first car. But its just an individual selling it. Or maybe youre even looking to buy a used car from a friend or family member. How does this work?
In short, buying from an individual is very similar to buying from a dealer. Youll have to fill out some of the same forms and get a loan if the vehicle is more than you can afford.
Here are the key differences to be aware of:
There are no dealer fees on private sales. Private sellers do not have the same obligation to disclose flaws.
There are, of course, pros and cons to this. The biggest pro is that an eager private seller is probably going to give you a much better price than an established dealership. The biggest con is that youll have to scrutinize every inch of the vehicle before purchasing to make sure youre buying a reliable first car and not just inheriting someone elses car problems.
Tip – Dont be afraid to ask the seller if you both can take the car to a mechanic for a thorough check prior to purchase, and always run a vehicle history report on the vehicle to see if its had any reported issues in the past. These extra steps could save you a lot of trouble in the long run.
See if PNC’s Private Auto Loan Options are right for you.
Ready To Open An Account Online
OUR SIMPLE ONLINE APPLICATION MAY TAKE ABOUT FIVE MINUTES TO COMPLETE
To make your experience fast and easy, for an Account you may need the following information for all signers that you add to the account:
- Social Security Number
- Government Issued ID
- Proof of Physical Address
- Funding information for new account only
Existing WEOKIE members wanting to open an additional account please .
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Ready To Apply For A Personal Loan
OUR SIMPLE ONLINE APPLICATION MAY TAKE ABOUT FIVE MINUTES TO COMPLETE.
To make your experience fast and easy, you may need the following information for your application:
- Social Security Number
- Government Issued ID
- Proof of Physical Address
For existing WEOKIE members – speed up your application by choosing the “Apply for a loan” from the Accounts tab while logged into your WEOKIE Online Banking.
Faqs About First Time Auto Buyer Loans
Can I qualify for a First Time Auto Buyer Loan if I dont have established credit?Should I get pre-qualified for a loan before I start shopping for my first car?
Its helpful to know what your budget is in order to set realistic expectations on which car you can afford. You can start the first time buyer auto loan application process online, or visit one of our branches to talk to a loan officer in person. Once you receive a pre-approval you can start shopping with the confidence of knowing you have the best rate for your budget.
What information do I need in order to get my loan?
- Government issued drivers license
- Recent paystub, W2 and/or filed and signed tax returns
- Auto Insurance Declaration Page – The auto insurance declaration page is a summary of your auto insurance policy. Declaration pages are issued upon the inception, renewal or revision of a policy and must be submitted to any lien holders.
Should I purchase Affordable Guaranteed Auto Protection ?
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No Credit Doesn’t Equal Zero Credit
As a first-time car buyer with zero credit, you may be surprised to know that your credit score probably isn’t zero. Consumers just starting out in the world of credit typically have a credit score in the low-to-middle range of the FICO credit score model, which runs from 300 to 850.
Your credit score is a combination of five factors found on your credit reports, with each making up a percentage of your overall credit score. When you apply for credit, lenders look at both your credit reports and your credit score. They can tell the difference between someone whose credit score is low due to lack of payment history, and someone whose score is low due to missed and late payments.
Closing Thoughts On The New Vs Used Car Debate
Weve broken down three key reasons why buying a new vehicle may not be the right financial decision for a first-time car buyer. In closing, we just wanted to make two quick points.
Buying Used – Just because youre buying used doesnt mean you have to settle for a suboptimal vehicle. Youll want to be looking for something that was well taken care of that should continue to be reliable. A $500 car might sound nice on paper, but it doesnt actually save you money if youre back to walking again in two weeks. Buying New – While it may not be the right financial decision for everyone, there is nothing inherently wrong with looking at new vehicles as a first-time car buyer. Consider what your needs are, what your budget is and make the best decision for you.
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Budgeting As A First Time Car Buyer
Previously, we discussed how auto loans work. We also discussed the things you should consider and the research you should carry out as a first-time car buyer. Here, we are going to shed a bit of light on budgeting. We will discuss some of the most common first-time car buyers concerns such as upfront and monthly payments.
Read: Smart Reasons to Buy a Used Car with a Tax Refund
Where To Apply For A First
Finding a first-time car buyer loan can require research since lenders willing to offer such financing don’t always advertise it. However, here are some places to consider.
Credit unions. Many credit unions, such as Digital Federal Credit Union, offer credit-builder programs that include first-time car buyer loans. A quick online search of “credit union first-time car buyer program” will bring back many credit union results. These programs vary, but for the most part, they’re designed to help new-to-credit borrowers get an auto loan and successfully repay it. Credit unions require membership to get a loan, but many make joining easy.
> > MORE:What is a first-time car buyer program?
Captive lenders. A captive lender is the financing arm of an automaker. They often finance cars for first-time car buyers with the hope of securing brand loyalty for future car purchases. Some have special programs with financing, incentives or both that are limited to future or recent college graduates.
This financing is usually available through car dealerships and some banks however, some car makers have temporarily suspended their programs due to the current shortage of vehicles.
Online car retailers. Sites that sell cars, like Carvana, CarMax and Vroom, also have access to a network of lenders, which enables them to find lenders more likely to work with a first-time car buyer.
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First Time Buyer Faqs
Can I pay my loan online?
We make loan payments accessible and convenient. You can sign up for online banking, get eStatements, and sign up for autopay.
How do I apply for an auto loan?
Apply online with our accessible, user-friendly application.
Does TEG charge a fee when I apply for the loan?
Theres no application fee when you apply for an auto loan at TEG FCU.
When will I know if my application is approved?
Once youre pre approved, we will notify you and you can start shopping.
Do I have to know what car I am buying before I apply?
No, but it helps to have an idea of what you can afford. Use our loan calculator above to determine what you can feasibly expect to pay. You can also browse online to get an idea of what types of cars are available and of vehicle prices.
Where can I use my loan once Im approved?
Shop from our list of participating dealerships to enjoy transparency, to shop with confidence that youre getting the best deal available to you, and to take away the stress of worrying about figuring out financing and rates on your own.
Decide Whether To Buy New Used Or Lease
Once you know how much you can afford, the next step is deciding how to use your budget. We recommend purchasing a used car. Generally, new cars lose more than 20% of their value within their first year of use. And while leasing can be attractive, it typically requires a high credit score and is more expensive in the long run. Heres more on leasing versus buying. Whatever you decide, the next step is to get preapproved for the type of first-time car buyer loan or lease you want.
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The Car Loan Cash Now Application Form
At Car Loan Cash Now weve put all your needs in one simple application form. By filling in our form you can find the best first car buyer program for you that fits your budget. It only takes a few minutes to fill out and results are as quick as 60 seconds. The service is convenient, easy and can find you a first-time car buyer lender with low-interest rates. Get started now from the comfort of your sofa.
Car Loan Cash Now makes it easy for customers to find a first-time car buyer program. We work with customers with both bad and no credit history. We understand that customers need a car quickly so we have made our services as quick and stress-free as possible. Other services we offer include zero down car loans or financing agreements and first-time car buyers who have no credit history e.g. students.
Ready To Apply Online
OUR SIMPLE ONLINE APPLICATION MAY TAKE ABOUT FIVE MINUTES TO COMPLETE.
To make your experience fast and easy, you may need the following information for your application:
- Social Security Number
- Government Issued ID
- Proof of Physical Address
- Funding information for new account only
For existing WEOKIE members – speed up your application by applying for “Additional Accounts” from the Accounts tab while logged into your WEOKIE Online Banking.
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You’ll Never Forget Buying Your First Car Goldenwest Can Help You Get The Best Possible Financing With Our First
When you choose Goldenwest to finance your first vehicle, youll get a whole lot more than a new ride. Youll get essential financial tools to keep you moving down the road of life.
- Excellent rates and terms.
- Online and mobile access to manage your loan 24/7.
- Free Smart Start Checking Account for members ages 14-25.
- VISA debit card with up to $500 overdraft.
- VISA Rewards credit card with up to $1,000 limit.
Buying Your First Car From A Dealer
As a first-time car buyer, working with a dealership may be your safest option. The process will be fairly straightforward. You will test-drive and inspect the car, negotiate a price, sign the necessary paperwork and then be on your way. While securing payment first is not necessary, it will help the experience go more smoothly and help you get more attention from salespeople.
But why is it a safe option? The main reason is that dealerships are responsible for disclosing problems the vehicle might have or repairing those issues before selling it to you. If youre buying a new vehicle, you will also receive a warranty built to protect your investment through the first few years of ownership.
Please keep in mind that the price you end up paying will not be the same as the sticker price on the car. While that may be what you pay for the vehicle itself, you will also have to cover fees for documentation, prep and delivery, sales tax and any additional accessories or extended warranties that you may choose to purchase. While buying your first car from a dealership may be safer in some respects, it may also end up being the most expensive because of these additional expenses.
See if PNC’s Traditional Auto Loan Options are right for you.
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