How do no cosigner car loans work?
At this time I have no credit (that I know of) and I want to buy a newer car but I have absolutely no one to cosign & I was wondering how the no cosigner car loans work and what is the catch if there is one? I could go to a buy here pay here lot but I want a quality car and dont want to get ripped off so I want to get a loan and go to a decent lot and get a decent car so if someone could shed some light on this subject I would greatly appreciate it. Thank you!
Comments
Generally, the more money you have to put down on a car the better your chances of getting a no cosigner loan. Not to mention you must have a decent job and stability with that job.
Without credit or a co-signer, you're looking at an astronomical interest rate. I've had friends who got cars with rates as high as 21%. It's just like any other loan, but I believe they may require some sort of collateral just in case you default and they have to repossess the car. Then they take the collateral and sell it to make up for some of what they lost.
I would use a buy-here-pay-here as a last resort, they sell low quality vehicles for more than they are worth in book value. Your best chance is to save up a good down payment and go to a dealership and they will get you financed without a co-signer as long as you have a solid work history. I am a vehicle supplier and suggest staying away from buy here pay here