Nowadays, owning a car falls under basic necessity. We need it to travel to our place of work and cover expenses related to transportation. We also need it to transport our kids to school and meet various social obligations.
If you’re yet to buy a car and you’re planning to buy one, you would have two options—you can buy a used one or go for a new one depending on your financial capability.
Purchasing a car without credit
No credit means that you have never taken a loan and that you don’t have any credit history.
Why opt for no credit check auto dealerships?
There are many people without a credit score or a low credit score. It is hard for such people to get a loan for anything. Moreover, the same holds for an auto loan. Their loan applications get rejected. However, there are no credit check auto dealerships that provide an auto loan to people with a low or no credit score. Read on to find out more.
Steps followed for no credit check auto dealerships
No credit auto dealerships are likely to handle a lot of loan inquiry from customers. They check the credibility and background of the person seeking a loan. Before extending an auto loan to a person they verify the following:
- State ID, driver’s license, social security number
- Employment proof
- Bank statements
- Name of relatives or references
No credit check auto dealerships work by making a fair estimate of the person asking for an auto loan. This is based on both the person’s present financial capability and repaying capacity. It’s not given that if your auto loan application will be accepted. However, this is the best you’ve got.
Loan agreement document required by no credit check auto dealerships
While doling out an auto loan to a person, both parties should sign a loan agreement paper. This loan agreement paper will serve as a legal document. This document will be binding on both parties concerned in the no credit auto loan. All standard terms and conditions are included in the loan agreement document. Make sure you read the terms properly before signing the papers.