How does financing a car work?

Leann Villalta: I think you would get a loan with no problem but your interest rate may be a little high, for instance 7 percent or something (you can always look up the current rate online). I would shop around first and bring a check from a bank with you so that the dealership doesn't try to swindle you into a higher interest rate by saying that you don't have enough credit. If you do it this way then the dealership will likely try to beat the interest rate you bring in and in the end you have a great deal. As far as the down payment goes, I have never had to put one down, even when I had bad credit and before that when I had no credit. It's always better to put money down but if you can't then it's okay.By the way, a car loan is actually one of the easiest loans to get. So I wouldn't believe the other post that says you won't get financed without a co-signor. There are some banks that may be sticklers and require it but there are a lot who won't so that's why it's impo! rtant to shop around....Show more

Danette Slotnick: You won't get financed without a co-signer. Maybe at one of those lots that does their own financing and jacks up the prices of some older cars.If somebody had no credit at all established and a life savings of $500.00, would you lend them money for a car?

Autumn Vacio: No.

Chauncey Williama: Dealer's would not accept that, and neither would a bank. Chances are your income is limited, and your credit is obviously limited, as well as your down payment.The other guy is right. You won't find a bank that will finance you without a strong co-signer. That's how 90% of us start building our credit when it comes to a car purchase. Good luck!