A vehicle can be a great asset for college students, helping them to juggle their busy work, social and school schedules by cutting out long bus rides and treks by foot or bicycle. However, the tight budget constraints that usually accompany the college years can make it difficult for young men and women to finance a car as a college student. In truth, there are both pros and cons associated with the auto loans made available to college students. Educate yourself before stepping out to secure an auto loan, so that you can avoid some of the main pitfalls that young borrowers encounter.
The Pros of Financing a Car as a College Student
Although you may not have much of a credit history when just starting out in college, at least you do not yet have a negative history. This fact is generally appealing to creditors, many of which will be eager to become your first loan provider. Taking out auto loans for college students is a simple endeavor that requires only a few basics, such as proof of income (or a co-signer), proof of residency and proof of enrollment in college. In addition, car manufacturers commonly grant special discounts for college students that can save you a lot of money on a new car.
The Cons of College Student Auto Financing
While there are many reputable car dealers around, there are also a number of sharks in the water that are eager to take advantage of inexperienced first time buyers. Some dealers may try to 'pad' your loan interest rates, sell you a vehicle for an exorbitant amount or pressure you into signing an agreement before you fully understand all the terms associated with your loan. Applying for a loan from a third-party lender prior to arriving on the lot of any dealership is a terrific way to be proactive about protecting your interests while purchasing a car for college.
The cost of tuition, living expenses and class-related materials can be overwhelming. Many students take out loans just to get through school and the thought of taking out yet another loan for a vehicle can seem like the straw that will break the camel's back. This major 'con' can be overcome by taking your time in order to search out auto loans for students that include terms you can live with, without starving. If you need additional assistance, seek out a qualified financial adviser. Your college or university may even offer free financial counseling.
The Pros of Financing a Car as a College Student
Although you may not have much of a credit history when just starting out in college, at least you do not yet have a negative history. This fact is generally appealing to creditors, many of which will be eager to become your first loan provider. Taking out auto loans for college students is a simple endeavor that requires only a few basics, such as proof of income (or a co-signer), proof of residency and proof of enrollment in college. In addition, car manufacturers commonly grant special discounts for college students that can save you a lot of money on a new car.
The Cons of College Student Auto Financing
While there are many reputable car dealers around, there are also a number of sharks in the water that are eager to take advantage of inexperienced first time buyers. Some dealers may try to 'pad' your loan interest rates, sell you a vehicle for an exorbitant amount or pressure you into signing an agreement before you fully understand all the terms associated with your loan. Applying for a loan from a third-party lender prior to arriving on the lot of any dealership is a terrific way to be proactive about protecting your interests while purchasing a car for college.
The cost of tuition, living expenses and class-related materials can be overwhelming. Many students take out loans just to get through school and the thought of taking out yet another loan for a vehicle can seem like the straw that will break the camel's back. This major 'con' can be overcome by taking your time in order to search out auto loans for students that include terms you can live with, without starving. If you need additional assistance, seek out a qualified financial adviser. Your college or university may even offer free financial counseling.
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