Buying a used car with no credit and in a different state?

Asked by frankielaguna (256

) July 22nd, 2009

Please let me provide a little background:

I just moved to New Jersey from California.

My license is currently in California.

I am young (21) and have absolutely no credit at this point in time.

I am looking to buy a used car which will at the maximum be $5000.

If the car does cost the maximum specified I will need to finance a large portion of it (Currently I can put down $500 to $750)

The question I have is I do not have any proof of residency in New Jersey yet.

My paycheck stub is still linked to my California Address.

I also do not have a utility bill or any bills linked to NJ yet
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That being said,
Since I am going to need to finance will need I need a proof of residency for NJ?

Is there a way around it?

What can I do?

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2 Answers

gailcalled (54647

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It depends entirely on the lender. The interest rate is adjusted to fit the risk the lender takes. They can choose to only require your word on where you live, or a nominal proof, One way to get quick proof is to send yourself a letter or card to your new address.

The lender is more interested in your ability to pay him back than in the specific details. Those so called rules are just guidelines for separating the best buyer (lowest interest rate) from the riskier ones.

In California, you can join a credit union and get better deals, but I don’t know if they have them in NJ. Ask the car dealer to help you buy his car, he’ll find a way.

YARNLADY (46587

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