It may be better to say that you have no credit, but whatever your situation, it’s still possible for a young person to secure bad credit auto financing for their first car.
Are Young People Eligible for Auto Financing?
Regardless of your credit situation, there are a couple of things you’ll need to demonstrate to any company to convince them that you are not a risk. You will need to be 18 or over, according to the law, to be offered a loan towards the purchase of a car.
You’ll also need to verify that you can make the monthly finance payments. This means you must show evidence that you gainfully work and that you have money for a down payment. It might sound complicated, but it’s no more difficult for a millennial to secure auto financing than it is for someone much older.
Understand the Consequences
It’s important for young people to understand the implications of signing off on an auto loan; a reputable dealer will discuss them with you. Ultimately, a successful loan arrangement can help you to build or rebuild your credit and become more financially credible. However, you also need to consider the consequences if you’re no longer able to pay your monthly fee.
Every young person should be given the opportunity to finance their own car. A trusted dealer will go through it with you every step of the way if you can demonstrate your ability to pay.