Fresh Start
Life happens. We make it easy to get back on track.
Medical bills, a layoff or a decline at another lender: how our Fresh Start Finance Program works after a rough year.
Fresh Start Finance Program
No Credit Isn't Bad Credit. It's a Starting Point.
Your first car loan, and not much credit history to show for it? That's a starting point, not a strike against you. Here's what lenders look for, from our finance team on Auburn Wy N.
What "no credit" really means to a lender
A report with problems on it, like late payments or a collection, is bad credit. A report with very little on it is something else: a history that hasn't begun. That's common for anyone who has stuck to cash, never taken out a loan or only recently arrived in Washington. The lender just has less to go on.
So the lender fills in the picture with other evidence. Per the CFPB, that means income and current debts, the amount you borrow and for how long, your down payment set against the vehicle's value, and whether you choose new or used.
Six steps for a first-time buyer in Auburn
- Pull your credit reportsEquifax, Experian and TransUnion each give you a free report every week through AnnualCreditReport.com (FTC). Even a short one can carry an account that isn't yours.
- Price your insuranceLiability coverage is required to drive in Washington (RCW 46.30.020). On a financed vehicle, expect the lender to want more coverage than that. Quote the actual vehicle you're considering.
- Tell us it's your first loanUse the quiz near the top or call (253) 802-7050. Our finance team explains what lenders look for from someone new to credit.
- Collect your documentsProof of income and address, plus your license. The full list appears lower on this page.
- Your application goes to lendersOnce you agree, our finance team forwards it to outside lenders that take on buyers new to credit. Approval and terms are each lender's decision.
- Choose a vehicle that fitsIf a lender approves, shop within its budget, starting with our used vehicles under $20,000 or Certified Pre-Owned Volkswagens.
No approval is guaranteed, and each lender reaches its own decision.
What helps when your credit file is thin
- Income you can show on paper. That could be pay stubs, a benefits award letter, or tax returns and 1099s for self-employment. Regulation B doesn't allow a lender to discount part-time or benefit income for its source, but the lender sets how much counts.
- Steady time at your job and your current address
- A down payment or a trade-in, either of which lowers what you finance (CFPB)
- If someone with established credit agrees to co-sign, that person is fully on the hook if payments stop (FTC)
- A vehicle price that leaves room for insurance and fuel
Words to know before you sign
| Word | Meaning |
|---|---|
| Credit bureaus | Equifax, Experian and TransUnion, the companies that keep credit reports. All three are free at AnnualCreditReport.com. |
| Credit score | A figure calculated from a credit report; a thin file may not produce one yet. |
| Hard inquiry | A lender's look at your credit on an application. Checks from auto lenders that fall inside a 14 to 45 day span are generally scored as one inquiry, not several (CFPB). |
| Co-signer | Someone with established credit who signs with you and must pay if you don't (FTC). |
| Down payment | Money or trade-in value you put toward the vehicle up front, which reduces what you borrow (CFPB). |
First-time buyers at Bud Clary Auburn Volkswagen
★★★★★1,700+ five-star Google reviewsRead our Google reviews for Bud Clary VW of Auburn
“Being a first time car buyer, I wasn't sure what to expect. ... Super patient and answered all questions I had. Definitely not the push salesman stereotype.”
william c., Google review, January 2023
“...Kevin talked me through the anxiety that comes with buying a first car and the all the staff was wonderful.”
marjorie d., Google review, May 2022
“...He was very helpful and explained everything in detail, which helped me feel comfortable about such a big decision.”
Lillian D., Google review, April 2022
Excerpts from 5-star Google reviews, quoted as written. Every buyer's credit is different, and lenders make every credit decision.
Your first loan and your credit report
When a lender sends its records to the credit bureaus, the loan and its payment history appear on your reports, prompt payments and missed ones alike. Ask our Auburn finance team whether your lender does that before you sign, and turn on automatic payments if you can.
More than a monthly payment
Owning a vehicle means insurance, registration and tabs, fuel and upkeep on top of the loan. Buy any used vehicle from Bud Clary Auburn Volkswagen and the first two oil changes and first two tire rotations cost you nothing (an electric vehicle gets the rotations only). It will have passed our 137-point inspection, and it comes with a CARFAX report at no charge, a 3-day / 300-mile exchange and limited warranty protection lasting 3 months or 3,000 miles.
Recently graduated and leaning toward a new Volkswagen? Ask us whether the Volkswagen College Grad Bonus applies to the model you're considering.
Two related Fresh Start guides
Bankruptcy
Bankruptcy doesn't have to mean no car.
A discharged Chapter 7 or a Chapter 13 still in progress: the paperwork lenders want and the trustee's role when you live in King County.
What to bring to 3109 Auburn Wy N
Document lists vary by lender, and yours might want a page or two beyond this. A quick call before you come in tells you what yours needs.
- A valid driver's license
- Your Social Security number or ITIN
- Recent pay stubs, a benefits award letter, or tax returns and 1099s from self-employment
- Proof of address, such as a lease or a recent bill
- Your insurance card or your agent's details
- A co-signer's contact details, if one is applying with you
Let's find your first car
Answer the quiz near the top, go right to the credit application, or call (253) 802-7050 and ask for our finance team.
Visit Bud Clary Auburn Volkswagen
Bud Clary Auburn Volkswagen3109 Auburn Wy N
Auburn, WA 98002
Sales
- Mon - Fri
- 9:00 AM - 8:00 PM
- Saturday
- 9:00 AM - 7:00 PM
- Sunday
- 10:00 AM - 6:00 PM
Service
- Mon - Fri
- 7:30 AM - 6:00 PM
- Saturday
- 8:00 AM - 4:00 PM
- Sunday
- Closed
Frequently asked questions
How does a first car loan work with no credit history?
Apply with proof of what you earn, your time at the same job and address, and any down payment or trade. A co-signer can help but isn't required to apply. Each lender decides, and approval isn't guaranteed.
Does no credit count against me like bad credit?
Not in the same way. Bad credit shows problems on a report; no credit shows almost nothing, so a lender has less to judge and leans on your income and down payment. Each lender sets its own rules.
Is a co-signer required for a first-time buyer?
No, you can apply alone. A co-signer with established credit can strengthen a short file, but that person must repay the loan if you don't (FTC), so it's a big ask.
What do I need to bring for my first car loan?
Bring your license, a recent pay stub or benefits letter, a bill or lease with your address, and your Social Security number or ITIN. Have insurance set before you drive it home; our finance team will flag anything extra your lender wants.
Can I get a car loan without a credit score?
You can apply. With no score to read, a lender relies on your income, job and address history and what you put down. The CFPB lists those as factors lenders weigh alongside credit.
Should my first car be new or used?
That depends on your budget and what a lender will finance. A used vehicle at a lower price keeps the loan smaller, and a Certified Pre-Owned Volkswagen or any other used vehicle here has passed our 137-point inspection and includes a free CARFAX report.
Does Bud Clary Auburn Volkswagen help first-time buyers?
Yes. First-time buyers can use our Fresh Start Finance Program; the Auburn finance team submits each application to lenders comfortable with a short credit history. If you've just graduated, ask about the Volkswagen College Grad Bonus on select new models too.
Related pages
The Fresh Start Finance Program is Bud Clary Auburn Volkswagen's name for how our finance team handles applications from buyers with bad credit, no credit or a past bankruptcy. Financing comes from outside lenders, which decide approval and terms, and approval isn't guaranteed. A negotiable documentary service fee of up to $200 may be added to the sale price.