Have you been looking at new cars and weighing your Toyota financing options? The amount of choices can seem a little overwhelming, particularly when you have no credit history established. Thankfully, we have some helpful tips at Bell Road Toyota.
How Do You Finance a Vehicle?
To finance a vehicle, our financial experts start by collecting your buying criteria. We look at your work history, income, mortgage/rent, and other expenses to determine your debt-to-income ratio. Once we take a look at your credit history and score, we'll send your information to our circle of lenders to find a competitive loan for you.
How Does Credit Affect Approval?
If you don’t have an established credit history, that can be a red flag to lenders. After all, without a credit history, a lender has no way of knowing if you can pay back your loans.
Keep in mind, there are lenders that work with buyers without credit. Your credit score plays a large factor in your interest rate, so without credit, your terms may end up higher than you’d like.
Credit Work-Arounds
You don’t have to feel tied down to terms you don’t like, even if you haven't established credit. There are options that could help you secure better terms or a lower investment, including:
- Adding a co-signer with a higher credit score
- Making a down payment or using your trade-in value
- Building your credit ahead of time
- Considering special financing offers
We understand everyone has to start somewhere. There are options for you to finance a new car, even without a credit history. Let our Toyota dealers in Phoenix, AZ help you review your options and get approved in seconds!
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