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Posted in Auto Loans
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Yamez268

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Ease of getting a car loan for first time buyer? Good credit, short history, haven't started job yet
I recently graduated with a bachelor's, and I got a full-time job offer for a position in another state. I don't have a start date yet, but once I receive my start date I'll need to get a car as I don't have one currently. My FICO is around 750, but my history is only about 3 years not counting my authorized user history, which brings my average credit history to 5 years. It's also only a few $3k limit credit cards and student loans that haven't entered repayment yet, though they be when I get my start date. Will I be able to get a favorable loan on my own, or a loan at all, given that I'll need the car before I've established a work history? I'm looking mainly at used cars 2-3 years old, around $15k, and I'd put a down payment of $2-3k. I've considered new cars around $20k, but I don't want a payment that high, though I've heard it's easier to get a new car loan than it is a used car loan. I applied for a used car loan through a local credit union last month (good for 90 days which would have been long enough) but because it was online I wasn't able to give the details of my situation, they just saw length of employment (which is nothing really) and denied me. I want to be able to walk into a dealership with my financing in order so I have some negotiating power, rather than being forced to take whatever interest rate they offer me or walk out. This is also my first car purchase. Thanks for the advice.

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You need to actually HAVE a job before you can go buy a car, then you might get an authorization through the credit union.  Consider a 'certified used car' as something close to brand new in style and dependability, and at a lower cost.  With no long term work history, you might have to wait a bit.  You can get a decent used car for what you plan to use for a down payment and that can provide transportation until your credit and work history is better.  FYI-My credit union is online but also has a live customer service number so, when I was considering a new car, I called, answered some questions and was able to get a pre-authorized voucher for my new car. At my age, it is likely the last car I will every buy so I indulged in a new, instead of used.

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Work history

I bought my first car brand new when I was about to graduate college and didn't have a job. Generally you won't qualify for their best interest rate offers, but sometimes you will if they do some sleazy car salesman stuff..

sign up for for one of the "summer is on us" payment plans where there is no interest and no payments for 3 months and then start grinding. I always try to be a few months ahead on my car payments in case something crazy happens. My credit union is always like "you really don't need to make any more payments right now" but I'd rather have my next payment due in 120 days than 30...

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