7 Tips For First-Time Car Buyers With No Credit History

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• Just graduated from college? Finally found a job
  where you make enough to afford a car? If youre
  looking to buy your first car but afraid your
  lack of credit will get in the way, dont worry
  you can still qualify for financing, even without
  any credit history. Just follow these steps

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The first thing you should do before buying a new
car is request a copy of your credit report from
all three major credit bureaus. Your car dealer
will be looking up your credit history, and you
want to make sure that your credit score gives an
accurate representation of your history. Since
you dont know which bureaus the dealership will
be getting a report from, you want to make sure
all three are correct.  
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Before you buy a car, its important to know
exactly what you can afford. Keep in mind that
monthly loan payments arent the only expenses
youll have to pay theres also gas, insurance,
and maintenance. Be honest about your monthly
budget if you try to buy out of your price
range, it will cause a lot of problems down the
road.
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To estimate how much youll be paying in auto
insurance, get a quote online. Keep in mind that
a plan with a low annual percentage rate (APR)
will have lower monthly payments, but will end up
costing you more in interest in the long run.
Shorter contracts tend to have higher interest
rates, but they often end up saving you money
overall.  
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It pays to do your research when shopping for a
car. Look for used vehicles or leasing options
that may help you save money, and find out what
special offers manufacturers and local
dealerships are offering on certain models. Dont
just research the cars, either be sure to look
into the warranty extensions, protection plans,
and other optional expenses that dealers are
offering, and figure out which ones are worth the
additional cost.
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Having a family member with a strong credit
history cosign on a car loan is often the easiest
way for new car buyers to qualify for financing.
If you and your potential cosigner are both
confident that you can make your monthly payments
and that signing a loan together wont damage
your relationship, having an additional signature
on your loan can make buying your first car much
easier.
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When you go to buy your car, youll need to
provide at least six months worth of
paystubs/W2s to prove employment and salary,
proof of insurance, up to six personal
references, and proof of school enrollment and
graduation. If you dont have the paperwork to
show your employment and income history or
havent started your new job yet, have your
employer write a letter to the dealer that
confirms your salary.
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Congrats! Youve qualified for a loan and found
the car you want. Now all you need to do before
buying is to take your new car for a test drive.
Even if youve fallen in love with a car at first
sight, do not sign anything before youve driven
it yourself. If it doesnt handle how you want,
find a car that does. You dont want to get stuck
with a car youre not happy with after all the
work it took to get it.
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Desert Sun Motors is committed to providing its
customers with the best service and prices on new
and used vehicles. To learn more about our cars,
trucks, and SUVs, stop by our New Mexico
dealership or visit www.desertsunmotors.com today.