Cars are expensive to purchase, so most buyers finance all or most of the cost. Unfortunately, some do not have any credit available due to past financial problems or lack of a credit history. This makes buying a new car more of a challenge, although it can be done. It usually requires a co-signer, time to save money or a compromise in the type of vehicle chosen.

Choose the Least Expensive Vehicle Possible

Choose an inexpensive new car when your finances are limited and loans are not available to you. Pick from among the most economical models and skip the options. View your new car strictly as transportation, without any fancy and unnecessary frills like extra speakers, chrome wheels or a leather interior.

Save Enough Money to Pay Cash for the Car

Save up enough money to buy the new car you have chosen. Mighty Bargain Hunter, a personal finance site, points out that you don't have to worry about credit approval when you have cash in hand. You will be able to saved the needed amount more quickly if you choose an inexpensive vehicle. Cut down your budget and channel all of your extra money into the savings fund for your new car. It may take some time, but you will own the vehicle free and clear.

Shop at a Slow Time of Year

Make it easier to pay cash for your new car if you shop at a traditionally slow time of the year when sales people are more desperate to move vehicles. NODA Federal Credit Union cites the period in which new models are introduced as a good time to buy the prior model. It also states that the end of the year holidays are a good time for bargains. Many manufacturers offer rebates at those times that can save you hundreds, or sometimes even thousands, of dollars, and you'll also be able to negotiate a good price, if you have good bargaining skills.

Get a Family Member to Co-Sign for a Loan

You may not have credit available to you, but that does not mean you can't get a car loan with a creditworthy co-signer. This is someone who applies for the loan with you and agrees to take full responsibility for repayment if you default on the payments. This is a big responsibility, which is why the co-signer is usually a close family member. The person must have credit strong enough to qualify for the loan on his own, as the lender will provide the money based on his finances. You can reduce the risk for your co-signer if you save up enough money for a significant down payment, which will reduce the loan balance.

Source:

NODA Credit Union: The Best Time, Any Time, To Buy a New Car

Mightybargainhunter.com: Another Good Reason to Pay Cash for a Car