How to Buy a Car With No Cosigner

First-time car buyers and individuals who have a lack of credit history will often hear the same message from financial institutions when trying to take out a loan: "A cosigner may help get you approved." While a cosigner will help you get approved, you may not have someone who's willing to cosign a loan and therefore promise to make the loan payments if you cannot. You can get around the need for a cosigner by dealing in cash, purchasing a car from a different dealer or building your credit.

Step 1

Purchase the car with cash. Purchasing a vehicle outright allows you to bypass the need for a cosigner and having to pay extra money for interest. If you can't afford the cost of a new car, consider purchasing a used car. Many dealers have portions of their used inventory dedicated to $10,000 vehicles and under.

Step 2

Visit a "buy here, pay here" dealer. "Buy here, pay here" refers to dealerships that approve you for loans via their own financing department. You pay off the loan by making payments at the dealership. These dealerships typically charge significantly higher interest rates than traditional financial institutions, because they often approve individuals with poor or nonexistent credit history. Because these dealerships are willing to work with risky individuals, you usually won't need a cosigner.

Step 3

Build your credit. Applying for and using a credit card offers you the best opportunity to start building credit. Make your payments every month, and your credit will steadily increase. Once you have a strong credit score, such as 620 and above, financial institutions will begin seeing you as less of a risk and will probably not require a cosigner. If you are not approved for a standard credit card, apply for a secured credit card through your bank.


Secured credit cards require you to deposit money into a savings account prior to being approved for the card. The savings acts as a security fund for the bank in case you don't make the monthly payments.