Purchasing a new or used auto is a major decision and you're faced with numerous choices from style to options to color. If you are considering buying a car for the first time, you might not know where to begin. Making such a major purchase is most likely the first step in your financial life, so it is very important to take it seriously.  At Centennial Toyota, we specialize in First Time Buyer Approvals.  But there seems to be common theme among First Time Buyers: you want a car loan but don't have any real credit history. Many first-time car buyers think they'll either have to buy some old beater car for cash or accept financing terms that anyone else would find outrageous.  The truth is there are several things you can do today to get you behind the wheel of a solid car and still leave you with enough money to fill up the tank.

Step one: You need to know where you stand.  So get Pre-Approved Here.  Are you certain your student loan consolidation got reported correctly?  Or how about that time you were late paying your credit card?  Maybe you forgot, but the credit bureaus didn't.  A rule of thumb suggests that the cost to rent an apartment per month should not be greater than 25 percent of your monthly net pay. The cost of an auto loan should not exceed 10 to 12 percent of your monthly net pay.

Step two: Take a realistic look at your finances.  After all other expenses, how much can you really afford to put toward a car payment, insurance, gas and maintenance? You'll be a more attractive buyer if you can provide a decent down payment and keep your car payment to a low percentage of your monthly income. 

If you've got a couple cars already in mind, go online to get several auto insurance quotes.  Many financing sites like Toyota Financial provide on-line tools to help you estimate payments.

Play with the numbers and remember a lower annual percentage rate (APR) with longer terms will give you lower monthly payments - the flipside is that you'll pay more in interest over the life of the contract. To help save more money, consider taking a contract with a shorter term. 

Step three: Explore your options. You may qualify for programs that could bring down the purchase price of a vehicle or provide you with better financing options. For example:

College Grad: Did you just graduate or will you soon?  At Centennial Scion not only do they offer $400, but they offer no money down, deferred first payment for 90 days and they throw in free roadside assistance for a year.  And, of course, at Scion, there is no price negotiation - the price is the price, no haggling.

First Time Buyer:  Some programs assist first time buyers in purchasing certain model vehicles.  Interested in a Yaris, Matrix, Corolla or a Tacoma?  You'll need 10 percent down, a steady job, car insurance, references and a minimum income, but in most cases you won't need a co-signer.

Certified Used Vehicles:  Another way to save? Go used.  A "certified" used vehicle is one that meets standards set by the manufacturer and comes with a warranty.  You can probably find advantageous "same as new" financing, too.

Leasing:  Even though we're talking about purchasing a vehicle, before you hit the lots, consider if a lease might be the right option for you.  To learn more about the differences between leasing and buying, check out Leasing -vs- Buying here on our website.

Co-signer:  Got a family member with good credit willing to risk getting stuck with the bill if you miss a payment?  Should your account ever go to collections, guess who they can go after-your loving and trusting co-signer.

I'm not against the co-signer option; for many first-time car buyers, this is actually the fastest way to obtain vehicle financing, though it will not help your finance rate.  Just make sure you fully weigh all the benefits and potential consequences when going this route.

Add On's:  You won't leave a dealership without being offered extended warranties and payment protection plans. Don't discount the necessity of these options.  But if your goal here is to make sure you can afford your car, research and understand what will be offered. Also, check out life and disability insurance to cover your car payments should you become disabled or, well, you know, dead. 

Step four: Get your paperwork together. Here are a few things to bring car shopping:

1.  Proof of employment or future employment-a W2 or pay stubs showing at least six months of employment, or an offer letter for employment stating your salary. 

2.  References - the names and contact info for up to six people.

3.  Proof of enrollment in college and graduation date-or if you recently graduated, proof of graduation.

4.  If you have it, proof of collision insurance. 

5.  And any research you have done on the vehicles you like including invoice pricing data, incentives, rebates, Kelley Blue Book value (if you're looking at a used car) and your insurance quotes.

OK, so you know how much you can afford, you've researched rebates and special offers, and you have all your paperwork together. Now you're ready for that test-drive.

For those with limited credit history, financing or leasing a vehicle can be a challenge. Centennial Toyota offers a program that allows qualified applicants to drive off in a new Toyota Corolla, Matrix, Tacoma or Yaris without a co-applicant.

Both lease and finance contracts are available. With a Toyota Financial Services finance or lease contract from Centennial Toyota of Las Vegas, you can start building your credit history. Just meet the following criteria:*

Credit Line: At least one satisfactory credit line (minimum $500 trade line) open for at least one year, and no adverse credit.

References: Five personal and verifiable references.

Employment: A full-time job, which you've held for at least six months.

Sufficient Income: Your income must be enough to cover ordinary living expenses and vehicle payments, and be consistent and verifiable. Your monthly payment may not exceed a certain percentage of your gross monthly income.

Vehicle Insurance: You must show verifiable proof of insurance, as required under the terms of your contract. See your dealer for details.

Minimum down payment: Minimum down payment is 10% of MSRP or the agreed upon value of the vehicle, whichever is less (excludes any rebates or dealer incentives).

Other restrictions apply, so just call me, Tiny Malone, at 702-942-3865 or e-mail me.