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gpocalypse
gpocalypse asked in Business & FinanceCredit · 10 years ago

How to find used auto financing as a first time buyer?

Buying my first car, as my current one I've had for 10 years is just getting to that point where it needs to be traded in or sold before it needs to have a lot of money put into it. I recently got out of grad school and have a job that pays me a very adequate salary to very much afford a decent car (let's say a sticker price of $30,000). The current car I am looking at is a 2006 used car with about 60,000 miles on it, but I have found that I am having trouble getting approved for financing on it, so far being declined by two different banking institutions (one a local credit union and one a larger corporate bank). The reasons I have gotten so far were lack of installment history, as I know I have a good credit score (over 720). Do I just need to look further for financing, or am I pretty doomed to find financing at the price I'm looking for currently?

Update:

Obviously it's not immediate. I've heard that one major thing possibly working against me is I just started new employment 2 months ago, as well as moving geographically to start this job.

Update 2:

The large corporate bank is where I've had a checking account for the past 7 years. I believe they handle their auto loans and banking largely separately, where they essentially don't even rely on my banking relationship with them.

Update 3:

Thanks for the quality reply...I do have credit history with a credit card, and have never missed a payment on it and have generally kept it completely paid off every month.

3 Answers

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  • Genuine Guidance
    Lv 7
    10 years ago

    You may have to drive this car a bit longer.

    Do you have any credit cards? If your score is 720, you should be able to get a card. If you cannot get an unsecured card, get a secured one to start building some credit history. You say you have a lack of installment history, but have you ever had a credit card? Or any kind of credit? Not a cell phone plan or utility bill. Those don't count. You have to have an actual credit card etc.

    There are dealerships who will be networked with tons of lenders who specialize in different credit challenged scenarios. The thing is, most will want you to buy a new auto, not a used one.

    Another thing that might be hindering your progress here is the car you want. Your choice is right on the boundary: it's 5 years old and has the max amount of miles for a used car loan.

    You might do better either looking for a new car, or settling in and working at your job for about 6 mos and save up a decent down payment and then trying again.

  • ?
    Lv 7
    10 years ago

    Try your own bank where you have a checking account. Inquire about arranging automatic payments right out of the account

  • ?
    Lv 7
    10 years ago

    If you had a 720 financing would be immediate. The dealer usually has 1st time buyer programs.

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