Establish Credit

• If you need to get an auto loan, you may want to try to establish some credit first. If you can do so several months before you need the car loan, this would be best. You could open a checking account and a credit card. Then make some small purchases with your credit card. After you make purchases, pay off the balance as soon as you get the statement. Once you do this for a few months, it will be reported to the credit bureaus and you can establish a credit profile.
  
  

Buy Here Pay Here Lenders

• Even if you do not want to take the time to establish your credit in advance, you can still get a car. Some dealers use a system known as "buy here, pay here." With this type of financing, anyone who has a job can get approved for a loan. You get the car and then go to the dealership to make your payment on a regular basis. Usually, you must go to the dealer every week to make a small payment.
  
  

Guaranteed Approval

• Lenders who specialize in guaranteed approval loans such as "buy here, pay here" dealers have to charge higher interest rates on the loans they offer. They know approximately how many people will default on their loans overall. They factor this into their calculations and then charge everyone else a rate that will more than make up for these losses. This means that you will essentially be paying for other people who have their cars repossessed. You should be prepared to pay a high interest rate with this type of loan.
  
  

Down Payment

• When you have no credit and you want to buy a car, one way that you can improve your odds of being approved for a loan is to make a large down payment. If you can make a larger down payment on the car, it removes part of the risk for the lender. If you put a larger down payment on the car, it makes it less likely that you will be willing to let the car go to a repossession. This can give you a better rate and help you get approved.