Finally, the time had come. My son, Joshua was preparing to buy his first car. Having graduated from high school two years ago, he had found a full time job at a supply warehouse and was making $13 an hour. Earning about $2,000 each month, he was ready to get a car of his own.
He never consulted with us about his credit. He thought he didn't need credit, and after seeing what we had gone through a few years ago with our bank, struggling to keep our home, he had no desire to get himself into that kind of situation. He wanted to stay off the grid.
Avoiding the Burden of Credit
When Joshua finally told me his plans to buy a car, he said that he was planning on going up to Frank's Cars, a neighborhood car lot, where their motto was "No credit? No problem!". While I knew no credit car loans where a thing, I also knew they weren't the best choice for my son.
While my son was old enough to make his own decisions, I decided that it was time to have a serious talk with him. When I asked him why he was so apprehensive when it came to applying for a car loan, his reply to me was "I don't want to deal with credit companies; I don't want to be in debt." I told him that that the reason we had this roof over our heads was because we were able to get a loan to buy the house we live in.
Simply put, my son hadn't thought it through. I told him that while it was great that he had a steady job, he was going to need to build a credit history in order to make other big purchases later on in life and, not only that, but saving up and paying cash for a car was lengthy and unrealistic. "You don't think you're gonna live here forever, do you?" I joked. He got quiet, and I could tell that he hadn't thought about that.
Getting a Clear Head... and a Car
After that talk, he agreed that an auto loan was the best way to go about getting his first car. He already had some money saved up, and I knew how to find the dealer that could help him, and it certainly wasn't Frank's Cars.
It took just minutes for him to fill out the Auto Credit Express online application. That same day, Josh got a call from them with a name of a nearby car dealer that could help him. With his strong income and employment history, the dealership had no problem getting him into a nice, reliable vehicle. And, on top of that, he's building a strong credit history that will benefit him in the future.