Each and every year thousands of new drivers hit the road from the age of 15 to 18 and there is an onslaught of new inexperienced drivers out there ready to grip the asphalt. Behind the scenes of all that are the caretakers of these teenagers and they are the people who are in charge of making sure their son or daughter or loved one are a safe driver by providing them with a good starter vehicle.
A lot of work and thought must go into financing a new vehicle for a young adult and without even thinking about it people are financing cars from dealerships with high high interest rates and no collateral to put down. Skim through to find out how one can avoid the hassle of the dealer financing company and you can walk in there and pay cash for that new ride for your new driver in the family.
Bank Auto Loans
The most common alternative to using a dealer financing company is to consult your local bank about getting an auto loan. If you have less than perfect credit or low amount in your balance you will almost instantly be denied. Banks have a good grip on assessing your financial habits and quickly know when a borrower who is applying is in distress and that is a huge red flag for them. Banks run unnecessary credit checks, whether you have collateral or not, they actually put an inquiry on your credit and all of the other creditor’s you might seek will see that and that will red flag them because they now know you are consulting them because someone else denied you.
Fundraise For a down payment
If your new driver is old enough to work and has a job then coming up with a down payment and/or a cosigner will be very beneficial to your success in finding a vehicle. No financier wants to give anyone credit that can not prove some type of income whether its from independent jobs or in the form of a w-2. Ask around as many people as you can and look for little things you can do for them to earn extra money.
A great way to fundraise is to have community car washes where you can pay a local business owner to rent out a small space in their parking lot to to set up a canopy and use their hose. You would be surprised at how many five dollar car washes you can do in a day and if you multiply that by, let’s say a week, you can acquire several hundred dollars ready to kickstart more fundraising projects.
The benefit to providing a cosigner for this new vehicle loan will help you get the low interest you need and the flexible payment schedule that so many banks offer. What this does is solidify with the bank that their are going to be repaid and depending on how much it builds your credit you may never need to seek a co signer again for your next vehicle, or anything for that matter because on time auto payments are a major decbiding factor when banks assess your risk. Vehicle auctions are still commonplace in america today as well. Do your research and find out when a closed bid auction will be and try to land yourself a nice gem that won’t end up costing