Student Car Loan Tips
top tips for taking out a student auto-loan
by Abi Moses on 6th October, 2017
Getting a loan whilst you are a student is never easy. Plus, circumstances are different for every student. This is due to the fact that your sources of income may fluctuate, and you might have absolutely no credit at all. Meanwhile, banks can we wary of lending to students, though the good thing is the vehicle is collateral so it is usually possible. So, if you are a student that’s looking to get your very first auto loan, we advise that you prepare ahead of time. Here are our top tips on how to do so:
Save Up a Down Payment
Trying to save a load of cash when you are young may be one of the most difficult things you have ever done. Overall, financial decisions you make early in life can affect you for a long time, and if it is a car that you desperately need, sacrifices most certainly need to be made. You should ultimately aim for a downpayment of 5 to 10 per cent of the overall vehicle’s value. Every lender will look at someone who’s worked to save up in a favourable light.
Get a Steady Income
Getting a steady income is paramount to sustaining a car loan on your own. This is the main downfall to many students wanting a car loan. It can be considerably tough to get a flexible, good paying job and juggling collage at the same time. Though, if a steady income isn’t happening for you anytime soon, check out these options:
- Get a Co-Signer
- Shop your Credit Union, Bank, Dealership, or even Online
- Consider Refinancing after a Year or Two???Think about other Car Expenses
If you are on a student on a tight budget, it is crucial that you consider all expenses which are tied with a car. For example, you need to take into account insurance costs, fuel expenses and vehicle maintenance. It won’t be any fun having your own set of wheels if you can’t drive it anywhere.
Overall though, students work hard and it is usually a consideration by the potential lender when it comes to purchasing a vehicle. Are you looking to have a car on finance? Contact us today for the best options according to your budget.