young man behind the wheel of a vehicle

How to get an Auto Loan for First-Time Buyers

Helpful Tips for First-Time Car Buyers

Buying a car for the first time can be a nerve-wracking experience. Many first-time car buyers don’t know where to start or how to begin buying a car for the first time, adding an extra element of stress to the situation. Here at Broadway Auto Credit, we’re happy to help new car buyers with little, bad, or no credit begin their search and find the vehicle that’s right for them.

young couple inside a vehiclePull Credit Reports

Even if you believe you don’t have a credit history, it’s still a good idea to pull your credit reports. You may find that your credit isn’t what you thought, or even find inaccuracies in the report. Make sure all of the info on your reports is correct and report any mistakes. You can get one free copy of your report every 12 months from the three credit bureaus. Should you need more than that, you can pull extras for a fee.

Figure out your budget

Here at Broadway Auto Credit, we have a variety of other blog entries that may be helpful to you in figuring out your budget for your purchase. There’s more to buying a car than its selling price, so be sure to consider the monthly payment, car insurance, gas, maintenance and other aspects and figure out how they will balance within your current finances.

Save up for a down payment

Although here at Broadway Auto Credit, we accept as little as $100 down for certain models, other dealerships will require a more substantial down payment – especially for a new vehicle. And if you have little or no credit, you may be expected to put up a bigger down payment. A rule of thumb for new car buyers is to save up at least 10% of the car’s value as the down payment. The more money that you put down upfront, the lower your monthly payments and the less interest you’ll be charged over the course of your loan.

Find a Cosigner

One of the best and easiest ways to get approved for an auto loan for the first time for those with little to bad or now credit is to find a cosigner. This should be a trusted individual who is able and willing to pick up the slack on any missed payments.

[Read more: Things to know before getting an auto loan]

If you have any questions about getting approved for your auto loan, contact us today at Broadway Auto Credit!