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I have been employed for almost a year with the same company and make enough to cover rent, gas, and food monthly. I have student loans that come in and will afford me almost 900 in addition to that every month. I currently have a car that is 5 years old and I am concerned that within the next few years I will have to make costly repairs that will eventually add up to more than the car is worth. And I don’t want a situation where my car craps out and I have no money to buy a new car, SO i was thinking about buy a new car before my current one looses all value. I drive a chevy cobalt LT 2006. Also my current car is paid off.

I am looking to buy sometime in january when I will have the most money available in my account.

My neighbor has said he would like to buy my car for around 5000 (at least 500 more than a best case senario trade in) and so I could use that as a down payment for a new car. I pay rent, cable and power all on time and have never had a late payment. I have no credit cards what so ever as I would really rather not put my self in a situation where I am in debt in addition to my student loans. I was looking at cars and SUVs under 23,000. I haven’t decided what exactly but obviously vehicles with comparable or better MPG than my current car.

I have a few questions:
1) Which credit score website is the the most accurate for the cheapest price?
2) What sort of documentation should I bring in to the dealership regarding my student loans as proof of ability to pay?
3) Will I need a cosigner? My sister is almost 16 and I would rather not have to ask my mom to cosign as I would like my sister to be able to have that option and pay the lowest she can for the car. She’s been saving her whole life for car and I don’t want to ruin that for her.
4) Obviously my APR is based on credit score, employment history etc but what can I expect so I can start looking around online etc? I would rather only pay for the credit score once and closer to when I will buy the new vehicle.
5) Because I have little credit is it even worth looking into bank loans? Will it be a substantial difference in APR?

Thanks in advance.

2 Thoughts on Looking to Buy New Car- Little Credit History?
  1. Reply
    The Eagle Keeper
    July 10, 2011 at 6:25 pm

    There is too much to answer. I would be here an hr answering your question. This web site has many tips n’ advice on car buying. Happy reading. http://beta.edmunds.com/car-buying/

  2. Reply
    Tom Simpson
    July 10, 2011 at 6:31 pm

    Buying a new car is not at all a big deal now. Now starting with your questions i would also like to mention answers number wise.

    1. For credit score i would suggest you to go for Myfico
    2. The documents required to give to dealer or the company depends on the rules of that company.

    Also for your other questions its better you talk personally with the dealer/lender. There are companies providing new/used cars as well financing options. You should try that option as it makes your car buying as well financing under 1 roof.

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