Fresh Start
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Bad credit, a turn-down elsewhere or a buy here pay here loan you want out of: how the Fresh Start Finance Program works.
Fresh Start Finance Program
No Credit Isn't Bad Credit. It's a Starting Point.
Buying your first car in Longview with little or no credit history? A lender can't judge an empty file, so it looks at what you can show it instead.
Why no credit isn't the same as bad credit
Bad credit means there's a record of late or missed payments for a lender to weigh. No credit means there isn't much of a record yet, which is common for anyone new to borrowing, new to the area or used to paying cash. An empty file has nothing negative in it. It just gives a lender less to go on.
So the lender leans on what you can document. The CFPB lists what lenders weigh besides a score: your income and debts, how much you borrow, your down payment next to the car's value, and whether the car is new or used.
Your first car loan, step by step
- Check your credit reportsGet your free reports at AnnualCreditReport.com. Even a thin file can carry a mistake, like an account that isn't yours.
- Price the insurance firstWashington requires liability insurance to drive (RCW 46.30.020), and a lender may require coverage for damage to the car too. Get a quote before you shop.
- Take the quiz or call usTell us it's your first car. Our finance team goes over what lenders tend to ask first-time buyers for.
- Bring your papersProof of income, proof of address and your license. The full list is further down this page.
- We send your application to lendersWith your OK, it goes to outside lenders that consider first-time buyers. Each lender decides whether to approve and on what terms.
- Pick a car that fitsIf a lender approves, choose from cars that fit the budget it sets. Our used cars under $20,000 are a good place to start.
Lenders make every credit decision, and no approval is guaranteed.
What helps a first-time buyer's application
- Income you can document: pay stubs, award letters for benefits, or tax returns and 1099s if you work for yourself. Under Regulation B, part-time and benefit income can't be discounted because of where it comes from; the lender decides how much counts.
- Time at your job and at your address
- Cash or a trade toward the car. In the CFPB's words, the more you put down, the less you need to borrow.
- A co-signer with established credit, if you have one. The FTC points out that a co-signer is responsible for the debt if you don't pay, so talk it over first.
- A car priced inside your budget, with insurance counted
Words you'll hear
| Word | What it means |
|---|---|
| Credit report | The record of your borrowing and bill payments kept by the credit bureaus. You can see yours for free at AnnualCreditReport.com. |
| Credit score | A number calculated from your credit report. With little or no history, you may not have one yet. |
| Hard inquiry | The credit check a lender runs when you apply. Auto loan checks within the same 14 to 45 days generally count as one (CFPB). |
| Co-signer | Someone with established credit who signs the loan with you and is responsible for the debt if you don't pay (FTC). |
| Down payment | Cash, a trade-in's value or both, paid toward the car at the start. The more you put down, the less you need to borrow (CFPB). |
First-time buyers on Bud Clary Subaru
★★★★★4.6 stars from 1,444 Google reviewsRead our Google reviews for Bud Clary Subaru
“Leo, the salesmen was amazing and helped me decide what would work out best for a first time buyer.”
Emily F., Google review, April 2022
“We gave him our budget and must haves and he led us to our perfect new(to us) car! ... Over all perfect experience. Especially for us first time car buyers!”
Kat P., Google review, July 2021
“...walked me through and explained the process at every step. I highly recommend this dealership to any first time buyers.”
Henry L., Google review, May 2019
Excerpts from 5-star Google reviews, quoted as written. Every buyer's credit is different, and lenders make every credit decision.
Will your first car loan show up on your credit report?
It will if your lender reports it to the credit bureaus. Your payment history on the loan then appears on your credit reports, on-time and late payments alike. Ask the lender whether it reports before you sign, and set up automatic payments if you can so none slip.
Plan for more than the loan
A first car comes with costs beyond the loan: insurance, registration and tabs, fuel and upkeep. Every used car we sell includes your first two oil changes and two tire rotations free (tire rotations only on an electric car). It also passes a 137-point inspection and comes with a 3-month / 3,000-mile limited warranty, a free CARFAX report and a 3-day / 300-mile exchange.
Recently graduated and looking at a new Subaru? See whether the Subaru College Graduate Program applies to you.
More Fresh Start guides
Bankruptcy
Bankruptcy doesn't have to mean no car.
Chapter 7 or Chapter 13: the papers lenders ask for, and the steps in Washington's Western District.
What to bring to 961 Commerce Ave.
Lenders differ on paperwork, so our finance team may ask for more or less than this. Call ahead and we'll tell you what your application needs.
- Your driver's license
- Your Social Security number or ITIN
- Recent pay stubs, award letters for benefits, or tax returns and 1099s if you work for yourself
- A utility bill, lease or other proof of your current address
- Your insurance card, or your agent's phone number
- Contact details for a co-signer, if one is applying with you
Ready for your first car?
Take the quiz at the top of this page, start the full credit application, or call (360) 575-6868 and ask for the finance team.
Visit Bud Clary Subaru
Bud Clary Subaru961 Commerce Ave.
Longview, WA 98632
Sales
- Mon - Fri
- 8:30 AM - 7:00 PM
- Saturday
- 9:00 AM - 6:00 PM
- Sunday
- 11:00 AM - 5:00 PM
Service
- Mon - Fri
- 7:30 AM - 5:30 PM
- Saturday
- 8:00 AM - 3:00 PM
- Sunday
- Closed
Frequently asked questions
Can I get a car loan with no credit?
You can apply. With little history to read, lenders lean on your income, your job and address history, what you put toward the car and, if you have one, a co-signer. Each lender decides, and no approval is guaranteed.
Is no credit worse than bad credit?
They're different. Bad credit is a record of problems; no credit is a short record. Lenders read them differently, and each lender sets its own rules.
Do first-time car buyers need a co-signer?
Not to apply. A co-signer with established credit can help a thin file, but the co-signer is responsible for the debt if you don't pay (FTC).
What do I need to buy my first car?
A driver's license, proof of income, proof of address and car insurance before you drive away. Lenders may ask for more, so call ahead and our finance team will tell you what to bring.
Does applying for my first car loan hurt my credit?
A lender's credit check can affect a score a little, but auto loan checks that land within the same 14 to 45 days generally count as a single inquiry (CFPB). Apply when you're ready to buy.
What credit score do I need for my first car loan?
There's no single cutoff, and a first-time buyer may not have a score at all yet. Each lender draws its own lines and weighs your income, your debts, the amount you borrow and the car you choose (CFPB).
Does Bud Clary Subaru have a first-time car buyer program?
Our Fresh Start Finance Program covers first-time buyers: our finance team sends your application to outside lenders that consider buyers with little or no credit history. Recent graduates can also check the Subaru College Graduate Program on new Subarus.
Related pages
The Fresh Start Finance Program is Bud Clary Subaru'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.