How to Buy a Car With No Credit

Sometimes life throws you a few unexpected curve balls that can have a negative affect on you credit rating. When this happens, the prospect of buying a new car can seem virtually impossible to accomplish. However, your credit rating does not have to hinder you from buying a car. Here are a few steps you can follow to get over this hump and buy a car with no credit.

Things You'll Need

• Limited Power of Attorney form
• Assignment Agreement
• Credit Information Sheet
• Insurance documents

Instructions

1. Check local publications for eager sellers. Car owners who are in dire straits or have negative equity on their car loans often post ads in auto trader magazines and local newspapers. You may even know someone in this situation who's looking to sell their vehicle fast. Be sure to consult the National Automobile Dealers Association (NADA) book concerning your prospective vehicle. If the payoff figure on a vehicle is greater than the retail value listed in this book, then you may
   have located an eager seller.

2. Contact the owners of each vehicle that interests you. The goal of this conversation is to discover if the owner is upside down or in a negative
   equity position concerning their vehicle. In most cases the owner just wants to get what they owe on the vehicle so they can be relieved of their financial pressure.

3. Meet the owner face-to-face. Be professional and treat it like a job interview. During this meeting you want to be upfront with the owner about past credit problems that pose a hindrance to your ability to get financing. At the same time, you want to present a Suggested Assignment Agreement to the owner and assure them of your financial ability to take over their payments. Provide details concerning length of current employment, proof of income, length of time spent at current
   residence, etc.

4. Seal the deal. Get the owner to commit to your offer to take over the payments. If they seem hesitant, then empathize with their fears and ask when the next payment is due. They'll become more flexible as the due date approaches and you can offer to make the payment for them or make two payments in advance.

5. Complete the appropriate paperwork including Limited Power of Attorney, Assignment Agreement, Credit Information Sheet, and Insurance
   documents.

Tips & Warnings

• You'll find it easier to work with people who are facing repossession of their vehicles. They'll post ads that mention their need for someone to take over payments.

• In no way is this to be considered legal advice. Consult an attorney before you proceed to buy a car with no credit in this manner. You must be sure you have all the appropriate documentation and that it contains the proper language.

Resources

• Free Legal Forms