I think you are definately going to find yourself penalized in this scenario. It may be possible to insure through someone else in your family that has an established credit rating to get a better insurance rate???

I understand what everyone is saying but I just can't get a grip on I am lumped in the group with bad credit. If I pay cash for the vehicle, I pay more for insurance. If I finance the vehicle, I pay a higher rate because I have always paid for everything. I feel I should be viewed as great credit or less risk than people with debt large debts that pay also. They should look at assets vs. liabilities.

You are not being viewed as someone with bad credit, you are being viewed as someone with no credit. You have no way to prove that you paid for anything. Just because you own it doesn't prove you paid for it.

Sure you can. That is what a debit card is for.

Do you not have insurance now or have you just not been worried (or aware) that you were getting jacked up insurance rates? Would think if you have a good driving record and insurance history that it would offset your lack of credit history. Of course, I am neither a banker nor an insurance agent so I may be way off base.

If you pay cash drop full coverage. You should be self insured on all your older vehicles for sure.

Correct. But if they viewed assets including cash, stocks, bonds, etc. vs. liabilities the risk factor should get in proportion with credit. ie: High assets vs. low liablities = low risk. Nothing I can say is going to change it, was just looking for a way to get a good credit score without incurring debt.

Dealer bumps the rate as high as YOU AND THE BANK WILL LET THEM THATS HOW MOST OF THE MONEY IS MADE WHEN YOU BUY A CAR

No, you are correct. I have been made aware of this awhile back. But incurring debt wouldn't offset the cost savings in insurance IMO. I have older vehicles that I only carry liability on but now am getting several newer vehicles that I want full coverage on.

I did finance banking stuff for about six years. Worked at a finance company and at a Credit Union. Institutions lend $ for only one reason - profit. They pay minimum interest for holding your $ and charge maximum to lend it. If you demand a low rate then they aren't making $ unless they can get fees otherwise. The higher the credit risk the less are the options and the higher the cost for the borrower. That's why they would much rather have a customer with few options so the lender can make more $. An institution wants a borrower who finances top $ for vehicle, finances the tax on it, and finances the full coverage insurance (theirs, of course) for the maximum time. If you walk in with no credit and have substantial assets then they know you don't really need them. If you go in with no credit and no assets then you will do what they want. Its not as much risk as its profit. Costs the same amount of time, resources, and overhead to maintain a profitable loan ans a non profitable. Worse I was ever written up was for not making risk loans but non profitable ones.

This may have been suggested, as I didn't read the responses.

If you own all your stuff, go to the bank, and ask for a line of credit. See what the % will be, and borrow from your line of credit. Usually at a cheaper rate.

God Bless,
David B.

Try finding it in a long bed version if you REALLY want to struggle

If I had good credit I could finance it at 1.99%. Hard to beat that and I always look at all angles. If I took $30,000 and bought a vehicle I could save that 1.99%. But if I financed it and pay 1.99%, I could take my $30,000 and gamble on the stock market and hope to get at least a 4% return over that time and be 2.01% ahead at the end. Yes, its a gamble but 4% return is not that great and feasible. I think too much before spending...like I researched cost of oil change to new tires of that size before purchasing.