student car loans

A Crash Course in Getting a Car Loan for Students

Student car loans can be something that many dread thinking about. Often students think that because they have little to no income that they will automatically be declined on getting the car loan they need to secure their ideal car. Just like getting good grades, a student car loan can still be achieved with a little hard work. In this article we will look at some tips students can do to get these sorts of loans without being flooded with interest.

Inquire Around

Even though car loans for students are not often advertised by lenders such as banks, they can at times still have such loans available upon request. Those serious enough to ask usually will then be considered and if the student has good or even no credit history they may still be in position to secure such a loan. The lender in this case may also look at the degree the student is getting to see if they are viable in the future to pay back the car loan.

asian student car loan

Fight the Interest

Lenders who do end up giving student car loans can often act like they are doing the student a favor and the student ends up signing the papers right away. This is a big mistake. Lenders in this situation are looking to make the most money off a person who already cannot afford much with tuition fees. Students should look to fight the lender to lower the interest rate. Now this does not mean that the student should get into a shouting match or be excessively demanding but rather, negotiating calmly on a rate reduction. Often times the lender will simply lower it by some amount just to get the deal done.

Get a Family Member or Friend to be a Cosigner:

If you are still having trouble with high interest rates and do not want to have the headache of them later then try to get a cosigner. A person with a job or steady income signing off on your payments guarantees the lender that money will be repaid quickly so they have less fear. This can easily drop rates significantly.

family member to be a consigner

Use Student Loans

In the event that you continue to have trouble securing a student car loan and are desperate to get financed, one can try to use a student loan. Some cities do not send student loan money to the school but rather a check to the student for them to cash. Rather than using an excessive amount on a nice dorm or lavish food, cut some of the money out of this to finance the car. This should still be a last ditch type resort as these sorts of loans are not usually meant to buy vehicles.

Concluding, we see that getting a student car loan is not the hardest thing in the world, it is just a pain in the butt to get a decent one! Students should contact all lenders in their area about this type of loan and if available negotiate for a lower rate. If rates are still high then getting a cosigner or using your class student loans may be other great options.