Hey everyone, I’m in a bit of a pickle and could use some advice on getting a car. I’m 20 and self-employed, making between 2-6k monthly. But here’s the thing: I don’t have regular bank deposits or paystubs to show as proof of income.
I’ve got no credit score (never had a credit card) and I’m not sure how to prove I can make payments. I’ve been paying rent and phone bills on time, but it’s all through informal arrangements.
I’ve got 4k saved up for a down payment. Should I wait and make consistent bank deposits for a few months before trying to buy? Or is there another way to go about this?
I really want to finance a car to start building credit, but I’m not sure how the process works when you’re self-employed with no credit history. Any tips or suggestions would be super helpful!
Thanks in advance for any advice you can give!
Hey Nora, I’ve been in a similar spot before. It’s tough when you’re self-employed and don’t have the usual paperwork banks want. Have you thought about trying a credit union? They can sometimes be more flexible than big banks.
One thing that helped me was keeping really good records of my income and expenses. I used an app to track everything, which made it easier to show potential lenders what I was actually making. It’s not a guarantee, but it might help.
The down payment you’ve saved is a good start. Some places might be willing to work with you if you can put down a bigger chunk. It shows you’re serious and reduces their risk.
As for building credit, maybe look into a secured credit card? It’s not the same as financing a car, but it could help you start building a credit history. Just be super careful with it and pay it off every month.
Honestly, waiting a few months and making consistent bank deposits isn’t a bad idea. It gives you a paper trail to show lenders. But I get it if you need a car sooner. Maybe look into some of those buy-here-pay-here places as a last resort? The rates are usually awful, but sometimes they’re more willing to work with people in unique situations. Just read the fine print carefully if you go that route.
Good luck! Hope you find something that works for you.
Hey Nora, I feel your struggle. The auto finance market’s been tightening up lately, especially for folks without traditional income streams. 
Have you looked into fintech lenders? Some newer players are using alternative data to assess creditworthiness beyond just FICO scores. They might consider your consistent rent and phone payments as positive signals.
One thing to watch out for - interest rates are pretty volatile right now. If you can hold off a bit and build some credit history first, you might save a bundle in the long run. Maybe grab a secured card and use it responsibly for 6 months?
Your $4k down payment is solid. In this market, that could help offset some lender concerns. Just be prepared for higher rates given your situation. And whatever you do, steer clear of those ‘buy here, pay here’ lots. They’re having a field day with repos lately.
Curious what others think about waiting vs. jumping in now. The used car market’s been cooling off a bit, so prices might dip further if you can be patient.
Tough spot, but not impossible. Your $4k down payment is solid - use it as leverage. Credit unions are your best bet here. They’re more flexible with non-traditional income and thin credit files. Bring bank statements, tax returns, and detailed income records to prove your earnings.
Don’t rush into a buy-here-pay-here deal. Those places will gouge you on interest and often have shady practices. Instead, focus on building credit quickly. Get a secured credit card, use it for small purchases, and pay it off monthly. After 6 months, you’ll have a credit score to work with.
In the meantime, document everything. Use accounting software to track income/expenses. Make consistent bank deposits. The more financial history you can show, the better your chances.
If you absolutely need wheels now, consider a private party sale with owner financing. You might find someone willing to work with your situation. Just get any agreement in writing and have a lawyer review it.
Remember, patience pays off here. A few months of prep work can save you thousands in interest and fees down the road.