How to Get Approved for A Car Loan Without Credit?

M.J.H. · 05-02-2004, 05:51 PM

Okay I am 20 years old, and a college student, just to give you some history. I have had a cell phone bill but havn't had any real bills before, so I honestly don't have that much established credit so to speak.

I had a Honda Prelude that recently had serious problems (engine and transmission are shot). The details of the problems really are not relevant. My dad bought that car for me and unfortunately is not going to buy another car for me.

Now the situation is this. I need a car, I mean I have to have transportation to and from work, etc.

Does anyone know how people without established credit would go about getting a car loan? Even for a used car let's say in the $10-15K price range?

My Prelude was $10K, but this was a year ago. And I am not trying to get anything brand new just yet.

**P-funk** · 05-02-2004, 06:06 PM

Why don't you go and establish some credit? buy something with a credit card and then pay it off.

What about public transportation??? (I guess I am kinda spoiled with that living in NYC)

M.J.H. · 05-02-2004, 06:10 PM

Public transportation isn't an option here in Delaware. And no regardless, you need a good amount of established credit to get something like a car loan. I am not sure what else to do. I need to somehow get a way around.

**P-funk** · 05-02-2004, 06:11 PM

Do you know that you need that much credit to get a car loan for sure?? I wouldn't know as I have never gotten a car loan. But, to rent an apt. in NYC they make it really hard on you and I had very little credit when I moved here and was still able to get a place.

**Prince** · 05-02-2004, 06:13 PM

you paid $10k for a car one year ago and the engine and tranny are shot?

there are dealers that have "first time buyers programs", as long as you do not have anything bad on your credit and you have an income that shows you can make the payment you can get approved.

btw, banks love giving credit to college students.

LAM · 05-02-2004, 06:14 PM

Quote:

Originally posted by P-funk
Why don't you go and establish some credit? buy something with a credit card and then pay it off.

that doesn't work...creditors will give you a "good" credit rating by having a balance and making timely payments. when you make a purcahse then pay it off all at once the creditor makes no money so you are not given as high a score.

Monstar...if you are still in college with no regular income it is pretty tough (bordering impossible) to qualify for a auto loan with out sufficient credit history. and if you do get a loan the interest rate will probably be from 15-22%.

can you get a co-signer and purcahse a cheap car ? for like 3-5K

M.J.H. · 05-02-2004, 06:17 PM

Okay, after owning a $10K Honda, that went to sh*t on me, the last thing I want is a car half that price. I mean the maintenance alone IMO is just not worth buying an older car. Plus if I am paying something month to month I want to like it, 'ya know?

I like the idea about "1st Time Buyer" though, I might really look into that. I mean being a college student should help, I think. I just need to get a car, and fast, because I am having an extremely tough time getting to and from my job, getting rides, etc.

JLB001 · 05-02-2004, 06:19 PM

Trade in the piece of sh@t and hunt for a first time buyer loan.

M.J.H. · 05-02-2004, 06:21 PM

Its a 1997 Prelude with 106K miles, and serious engine/transmission problems. The trade-in value is already sh*tty because of the mileage, so I can't imagine getting anything at all for it at this point.

**Prince** · 05-02-2004, 06:22 PM

Quote:

Originally posted by MonStar
Its a 1997 Prelude with 106K miles, and serious engine/transmission problems. The trade-in value is already sh*tty because of the mileage, so I can't imagine getting anything at all for it at this point.

I still want to know why you paid $10k for this a year ago?

M.J.H. · 05-02-2004, 06:30 PM

The KBB value of a 1997 Honda Prelude, with 88K miles, mint condition leather interior etc. is around $9,200 I believe. So I wasn't taking a loss I don't think.

**Prince** · 05-02-2004, 06:34 PM

okay, but an engine and tranny on a Honda should not go out at 106k, maybe at 206k.

what happened?

supertech · 05-02-2004, 06:37 PM

You are better off putting in a used engine and tranny.And keep the Prelude.

JLB001 · 05-02-2004, 06:42 PM

Hmmmm...Me thinks someone forgot to change the oil.

GSXR750 · 05-02-2004, 06:55 PM

If you want to establish credit the best thing you can do is go take out a secured loan, or continue to pay off a credit card. You don't recieve a good credit history over night it takes time--sucks eh.

**IainDaniel** · 05-02-2004, 07:16 PM

Get your parents to co-sign a loan?

However I agree with rebuilding the Honda

Vieope · 05-02-2004, 09:04 PM

Start playing Grand Theft Auto.

greekblondechic · 05-02-2004, 09:07 PM

That's easy, just steal one

Mine's a 97 w/ over 100k miles...

I hope it doesnt have problems soon

Preludes are so pretty

Stickboy · 05-02-2004, 09:23 PM

You should be able to get a bit of money for the car. If it's just the engine and tranny, you should still be able to sell it someone who will just drop a new engine and tranny in it.

I had a 89 dodge pickup that had the same problems. I had 125K miles on it by the time I sold it. I got $3900 for it. Sold it to a guy that had an engine for it.

You could also try leasing a car. Not sure how credit plays on that, but it's another option.

I know college kids working at Micky D's around here are driving their own cars. You should be able to find a way to make it happen. As someone mentioned, there are first time buyer plans, so that may be another way.

M.J.H. · 05-02-2004, 10:02 PM

I am going to see what happens tomorrow. I am going to call around and see if I can possibly somehow get approved. Since I am a full time college student, etc. And I am going to tell them that I can trade-in my 1997 Prelude, even though its not driveable.

I am set on a 2000 Toyota Celica GT-S.

**dg806** · 05-03-2004, 08:26 AM

Quote:

Originally posted by Stickboy

You could also try leasing a car. Not sure how credit plays on that, but it's another option.

Leasing usually requires a large down payment and it is usually for 3 years. I don't think this will help. Also leases require even better credit for approval.

GSXR750 · 05-03-2004, 08:58 AM

If you get stuck with no transportation you could always go buy a motorcycle. Used bikes are way cheaper than cars (unless you want a beater).....I fill up on gas once every week and half----$9.00....and the ladies love ya.......sucks when it rains, only good reason for a car.

05-02-2004, 05:51 PM	#1
M.J.H. Obsessed Elite Member Join Date: Jun 2001 Location: Delaware Posts: 3,587 Photos: 12	How to Get Approved for A Car Loan Without Credit? Okay I am 20 years old, and a college student, just to give you some history. I have had a cell phone bill but havn't had any real bills before, so I honestly don't have that much established credit so to speak. I had a Honda Prelude that recently had serious problems (engine and transmission are shot). The details of the problems really are not relevant. My dad bought that car for me and unfortunately is not going to buy another car for me. Now the situation is this. I need a car, I mean I have to have transportation to and from work, etc. Does anyone know how people without established credit would go about getting a car loan? Even for a used car let's say in the $10-15K price range? My Prelude was $10K, but this was a year ago. And I am not trying to get anything brand new just yet.
	Stats! 23 years old, 5'11.5", 206 lbs., ~8% bodyfat 380/455/655 bench/squat/deadlift (current) 405/495/675 bench/squat/deadlift (goals) The M.J.H. Chronicles

05-02-2004, 06:06 PM	#2
P-funk Patrick Super Moderator Join Date: Dec 2002 Location: AZ Posts: 30,432	Why don't you go and establish some credit? buy something with a credit card and then pay it off. What about public transportation??? (I guess I am kinda spoiled with that living in NYC)
	http://pwtraining.blogspot.com/.....come and see what is on my mind! http://ivonneberkowitz.blogspot.com/....check out Ivonne's new blog! Optimum Sports Performance "In the beginners mind there are many possibilities, in the experts there are few." -Buddha's Little Instruction Book

05-02-2004, 06:10 PM	#3
M.J.H. Obsessed Elite Member Join Date: Jun 2001 Location: Delaware Posts: 3,587 Photos: 12	Public transportation isn't an option here in Delaware. And no regardless, you need a good amount of established credit to get something like a car loan. I am not sure what else to do. I need to somehow get a way around.
	Stats! 23 years old, 5'11.5", 206 lbs., ~8% bodyfat 380/455/655 bench/squat/deadlift (current) 405/495/675 bench/squat/deadlift (goals) The M.J.H. Chronicles

05-02-2004, 06:11 PM	#4
P-funk Patrick Super Moderator Join Date: Dec 2002 Location: AZ Posts: 30,432	Do you know that you need that much credit to get a car loan for sure?? I wouldn't know as I have never gotten a car loan. But, to rent an apt. in NYC they make it really hard on you and I had very little credit when I moved here and was still able to get a place.
	http://pwtraining.blogspot.com/.....come and see what is on my mind! http://ivonneberkowitz.blogspot.com/....check out Ivonne's new blog! Optimum Sports Performance "In the beginners mind there are many possibilities, in the experts there are few." -Buddha's Little Instruction Book

05-02-2004, 06:13 PM	#5
Prince the one & only Administrator Join Date: Nov 2000 Location: Colorado Posts: 33,738 Blog Entries: 25 Photos: 320	you paid $10k for a car one year ago and the engine and tranny are shot? there are dealers that have "first time buyers programs", as long as you do not have anything bad on your credit and you have an income that shows you can make the payment you can get approved. btw, banks love giving credit to college students.
	SBMuscle.com - Discount Supplement Superstore AlltheWhey.com - Bulk Protein Powders CEM Products - Research Chemicals & Supplements MusclePharm - Complete Nutritional Arsenal BigBackGrips - If you lift weights you've got to try these grips! HumaneVoLabs - Foaming Transdermal Delivery System.

05-02-2004, 06:17 PM	#7
M.J.H. Obsessed Elite Member Join Date: Jun 2001 Location: Delaware Posts: 3,587 Photos: 12	Okay, after owning a $10K Honda, that went to sh*t on me, the last thing I want is a car half that price. I mean the maintenance alone IMO is just not worth buying an older car. Plus if I am paying something month to month I want to like it, 'ya know? I like the idea about "1st Time Buyer" though, I might really look into that. I mean being a college student should help, I think. I just need to get a car, and fast, because I am having an extremely tough time getting to and from my job, getting rides, etc.
	Stats! 23 years old, 5'11.5", 206 lbs., ~8% bodyfat 380/455/655 bench/squat/deadlift (current) 405/495/675 bench/squat/deadlift (goals) The M.J.H. Chronicles

05-02-2004, 06:19 PM	#8
JLB001 I see YOU!! Elite Member Join Date: Nov 2003 Location: Houston Posts: 8,293 Photos: 5	Trade in the piece of sh@t and hunt for a first time buyer loan.
	"When you get to the end of your rope, tie a knot in it and hang on."

05-02-2004, 06:21 PM	#9
M.J.H. Obsessed Elite Member Join Date: Jun 2001 Location: Delaware Posts: 3,587 Photos: 12	Its a 1997 Prelude with 106K miles, and serious engine/transmission problems. The trade-in value is already sh*tty because of the mileage, so I can't imagine getting anything at all for it at this point.
	Stats! 23 years old, 5'11.5", 206 lbs., ~8% bodyfat 380/455/655 bench/squat/deadlift (current) 405/495/675 bench/squat/deadlift (goals) The M.J.H. Chronicles

05-02-2004, 06:30 PM	#11
M.J.H. Obsessed Elite Member Join Date: Jun 2001 Location: Delaware Posts: 3,587 Photos: 12	The KBB value of a 1997 Honda Prelude, with 88K miles, mint condition leather interior etc. is around $9,200 I believe. So I wasn't taking a loss I don't think.
	Stats! 23 years old, 5'11.5", 206 lbs., ~8% bodyfat 380/455/655 bench/squat/deadlift (current) 405/495/675 bench/squat/deadlift (goals) The M.J.H. Chronicles

05-02-2004, 06:34 PM	#12
Prince the one & only Administrator Join Date: Nov 2000 Location: Colorado Posts: 33,738 Blog Entries: 25 Photos: 320	okay, but an engine and tranny on a Honda should not go out at 106k, maybe at 206k. what happened?
	SBMuscle.com - Discount Supplement Superstore AlltheWhey.com - Bulk Protein Powders CEM Products - Research Chemicals & Supplements MusclePharm - Complete Nutritional Arsenal BigBackGrips - If you lift weights you've got to try these grips! HumaneVoLabs - Foaming Transdermal Delivery System.

05-02-2004, 06:37 PM	#13
supertech American BadAss Elite Member Join Date: Dec 2003 Posts: 1,968	You are better off putting in a used engine and tranny.And keep the Prelude.

05-02-2004, 06:42 PM	#14
JLB001 I see YOU!! Elite Member Join Date: Nov 2003 Location: Houston Posts: 8,293 Photos: 5	Hmmmm...Me thinks someone forgot to change the oil.
	"When you get to the end of your rope, tie a knot in it and hang on."

05-02-2004, 06:55 PM	#15
GSXR750 Senior Member Elite Member Join Date: Feb 2004 Location: Florida Posts: 921 Photos: 4	If you want to establish credit the best thing you can do is go take out a secured loan, or continue to pay off a credit card. You don't recieve a good credit history over night it takes time--sucks eh.

05-02-2004, 07:16 PM	#16
IainDaniel My Role Model Moderator Join Date: Nov 2002 Location: Ontario, Canada Posts: 15,614	Get your parents to co-sign a loan? However I agree with rebuilding the Honda
	Obstacles don't have to stop you. If you run into a wall, don't turn around and give up. Figure out how to climb it, go through it, or work around it. Michael Jordan

05-02-2004, 09:04 PM	#17
Vieope Monochromatic Bunny Join Date: Oct 2003 Location: drinking coffee.. Posts: 14,829 Photos: 10	Start playing Grand Theft Auto.
	FURtherness

05-02-2004, 09:07 PM	#18
greekblondechic I'm special :) Join Date: Dec 2003 Location: NJ Posts: 7,791	That's easy, just steal one Mine's a 97 w/ over 100k miles... I hope it doesnt have problems soon Preludes are so pretty

05-02-2004, 09:23 PM	#19
Stickboy Rebel without a clue Elite Member Join Date: Feb 2002 Location: NM Posts: 1,115	You should be able to get a bit of money for the car. If it's just the engine and tranny, you should still be able to sell it someone who will just drop a new engine and tranny in it. I had a 89 dodge pickup that had the same problems. I had 125K miles on it by the time I sold it. I got $3900 for it. Sold it to a guy that had an engine for it. You could also try leasing a car. Not sure how credit plays on that, but it's another option. I know college kids working at Micky D's around here are driving their own cars. You should be able to find a way to make it happen. As someone mentioned, there are first time buyer plans, so that may be another way.

05-02-2004, 10:02 PM	#20
M.J.H. Obsessed Elite Member Join Date: Jun 2001 Location: Delaware Posts: 3,587 Photos: 12	I am going to see what happens tomorrow. I am going to call around and see if I can possibly somehow get approved. Since I am a full time college student, etc. And I am going to tell them that I can trade-in my 1997 Prelude, even though its not driveable. I am set on a 2000 Toyota Celica GT-S.
	Stats! 23 years old, 5'11.5", 206 lbs., ~8% bodyfat 380/455/655 bench/squat/deadlift (current) 405/495/675 bench/squat/deadlift (goals) The M.J.H. Chronicles

05-03-2004, 08:58 AM	#22
GSXR750 Senior Member Elite Member Join Date: Feb 2004 Location: Florida Posts: 921 Photos: 4	If you get stuck with no transportation you could always go buy a motorcycle. Used bikes are way cheaper than cars (unless you want a beater).....I fill up on gas once every week and half----$9.00....and the ladies love ya.......sucks when it rains, only good reason for a car.

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