Congratulations on taking the exciting step toward purchasing your first car! Understanding financing is key to making a smart purchase.
Understanding Your Credit
As a first-time buyer, your credit history may be limited. Here's what lenders look for:
- Payment history on credit cards or loans
- Length of credit history
- Types of credit accounts
- Recent credit inquiries
Building Credit Before You Buy
- Get a secured credit card and use it responsibly
- Pay all bills on time
- Become an authorized user on a family member's card
- Keep credit utilization below 30%
First-Time Buyer Programs
Many lenders offer special programs:
- Higher approval rates for first-time buyers
- Flexible down payment requirements
- Credit-builder programs
- Student graduate programs
Determining Your Budget
The 20/4/10 rule:
- 20%:Put down at least 20%
- 4:Finance for no more than 4 years
- 10%:Keep transportation costs under 10% of income
Documents You'll Need
- Valid driver's license
- Proof of income (pay stubs or tax returns)
- Proof of residence
- Employment verification
- Bank statements
Getting Pre-Approved
Pre-approval gives you:
- Clear budget parameters
- Negotiating power
- Faster purchase process
- Rate lock protection
First-Time Buyer Support at Planet Motors
We specialize in helping first-time buyers get approved. Our financing team works with multiple lenders to find the right solution for your situation. Contact us today!
Share this article:
