How 20-Somethings Can Afford their Dream Car

Statistics show that 20-somethings are not buying automobiles or homes at nearly the same pace as the young adults of yesteryear. Sure, the rise of ride-sharing services and the migration toward pedestrian-friendly urban areas partially explain these statistics. However, young people really do want vehicles, especially those sleek and sexy vehicles of their dreams. Here’s how you can turn your dream vehicle into a reality.


Don’t Fret if You Lack Credit

One of the main challenges young people face when attempting to secure a nice vehicle is the lack of credit. Most young people have not had the chance to acquire extensive lines of credit and establish an impressive credit history. Yet this should not stop 20-somethings from obtaining the vehicle of their dreams or for CA drivers – mount your cell phone, it’s a new law!

It is prudent to obtain a credit report from each of the three credit bureaus. They are: Equifax, Experian and TransUnion. These reports will show you exactly where you stand in terms of credit rating and history. Take a close look at each of the reports to determine if they are completely accurate. It is possible that an account you have paid off is still listed as unpaid. Or, an errant late payment might be listed on your report even though you have always paid on-time. Perhaps you consolidated your student loans and it was never reported to the credit bureaus. Any one of these seemingly minor errors can ruin your chances at snagging that sweet ride you’ve long-coveted.

Transform Yourself into an Attractive Borrower

The vast majority of 20-somethings can’t afford a sizable down payment on a vehicle. Part of the problem is that many young people fail to market themselves as worthy borrowers. If you are seeking a large car loan that takes up a significant portion of your discretionary income, you probably won’t be approved for the loan. Even if you are approved for such a loan, it will carry a high interest rate. Save up your money to cover the cost of a large down payment and you’ll stand a better chance of obtaining a car loan with a decent interest rate. Furthermore, try to pick up some extra hours at work or even a second job in the years and months leading up to your auto loan request. If you can prove that you have a stable source of income, you’ll heighten the odds of securing an auto loan with reasonable terms. You can also prove that you are an aware driver by taking a defensive driver course.

Explore all Avenues of Assistance

Most young people have no idea that programs exist to help 20-somethings purchase and lease vehicles. As an example, “College Grad” programs are available throughout the country. Check out automaker websites like and you will find discounted vehicle prices, no-money-down deals, payment deferral programs and all sorts of other benefits for recent college graduates. If you haven’t bought a vehicle, you will be eligible for “First Time Buyer” programs that help car-seekers acquire certain vehicle models. Take a look at other special programs for those in search of a vehicle. Toyota offers an iFinance program that requires the buyer to pay 10 percent of the vehicle’s worth in the form of a down payment, show proof of steady Semployment, meet a minimum income standard, secure auto insurance and provide references.

The Last Resort: Find a Co-Signer

If a family member or close friend is willing to act as a co-signer for your car loan, this individual just might be the missing piece to your dream car puzzle. The risk is that the co-signer will be stuck with your debt in the event that you miss payments. This is a last resort but it is definitely worth considering if you have no other way of securing your dream car.

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