Getting car loan on no credit?

I'm about to start my first full time job and am in the market to purchase another car. I have found a good car that I want to buy but the seller wants $16500 for it. I think I can talk him into knocking a grand or two off of the car, but I would still need to get a loan. I have an offer letter from my company stating that I will be making around 28k per year but this is only for a 60 day period, after which I will make more. My question is, I want to get a car loan but I don't have any credit. Has anyone tried to do this before? I don't know if I'll be approved or not. I guess I could put the vehicle up as collateral, but I'm not sure if that would be a possibility. Thoughts?

EDIT:
Just wanted to come back to this. I got a secured card and put only gas purchases on it. My credit score is well above the 700s now. And I got another card with a much higher limit and better interest rate. No longer will I need to worry about going over my 30% credit utilization ratio. still only putting gas and grocery purchases on it.

And I don't want an STI anymore. After looking at one craigslist post after another and seeing "body 100k miles, engine 30k miles" it became obvious to me that boxer engines are crap. Ringland and head gasket failure too common.

Also I got a new job that applies to what I learned in school. It pays a lot more than my last. Just had to be a little patient to find it.

 

In short.... Your going to need some stability in your employment.

 

Well I'm trying to get a credit card at the moment to establish some credit and I know I will be fine financially after I get past the 30-60 day period. I was just wondering if anyone else had a similar experience

 

I bought my first new vehicle like that with no credit. I fortunately had a boss at the time that called his banker and vouched for me. Banker wrote me the loan with no co-signer or anything. Other than that you're probably going to have a very high interest.

 

If you're buying car right now you're going to need a co-signer with good credit, even with a co-signer chance are you're going to pay high interest because lack of credit and work history. If you can wait 6 months to a year from now, go out and buy a prepaid secured credit card. This type of type of credit card is designed to help build or restore credit to high risk borrowers use it wisely pay on time, pay more than the minimum payment, do not float more than 20% of credit limit balance into the next month. Some may say to pay it in full each month, but IMO I would roll a small balance (less than 10%) into the next month this shows the creditors you can manage debt from month to month without over doing it (paying in full one month and then carrying a high balance the following month). After a year on managing the CC you should enough credit history to buy the car on your own.

 

I just got my application back from the bank about a credit card and I need a co-signer, so I guess I'm going to just do that first. Apparently I have to keep a certain amount in my bank to pledge against the CC. Hopefully I'll be able to build some credit first.

 

You could talk to your bank about a small loan to build credit also. Always a good thing to know the loan officer at your bank.

 

co-signer but it is not wise to be that guy

 

Never co sign for anyone....ever

 

As a secondary, why on earth are you considering a $17k car while making 28k a year? You're attempting a fairly terrible financial decision.

Spend $7k and pay cash for it.

 

^^^^ this^^^^

 

My 21 year old cousin who doesn't exactly have his shit together(works at walmart, fighting for custody of multiple kids with a girl he is no longer with) asked my mom to cosign a loan for a frikkin mobile home It didn't happen. I don't think I would ever cosign a loan for anybody. My first loan/credit history was me buying a zero turn mower which my mom cosigned for me. I was thankful, and would never in a million years rip her off. I'm sure some of you have some horror stories.

 

Looks like they are wanting you to do a shared secured credit card because of your credit.

Do you have at least 3 open lines of credit? I work at a credit union and that is one of the first things we look at.

 

If you desperately need a car/truck you could go to one of those buy here pay here car lots. you will pay 2 prices for a P.O.S. vehicle plus an interest rate that would make Jimmy Carter proud and they may install an electronic immobilizer in the vehicle so if you miss a weekly payment you cant drive. but they will extend credit to any one.
Best bet establish credit and start with less vehicle until you get your ducks in a row.

 

I had my credit checked by my local bank. I have no credit. At all. So I'm gonna apply for a card through USAA. Even though I'm not a student anymore, they told me I could get a student card.

 

OP.. why are you wanting such an expensive car with such a minor income? I'm assuming you're a recent high school grad?

 

I've had the same situation. I'm a german national, moved here with 0 credit about 5.5 years ago. My wife was born here, so that helped a lot, since her credit was decent.

Anyhow, here is what I did. I got a secured CC, meaning you give a CC company a certain amount of money, and they give you a CC with a limit in said amount. In my case, USAA did it no problem. I still have it to this day.
It doesn't have to be a large amount either, just make sure you pay the balance at the end of the month. I was approved for a car loan about 2 months later, and then, about 4 months later, we bought a house, with me as the primary borrower.

You're going to want some decent down payment, otherwise they're going to give you a horrible interest rate.

 

This is a common misconception. It doesn't help you. Credit scores factor in utilization and paying on time...carrying a balance is not going to help you and you will just end up paying unnecessary interest.

Never ever ever carry a balance on a credit card. Allow a balance to post on a statement, but pay it in full.

Every single person I know with credit scores in the 800 range has never carried a CC balance. I'm 23 so length of history is the main thing that works against me, but I'm just a hair under 800 having never carried a balance.

 

Are you working in finance, js312?

 

No, I just have a number of bank employee relatives.