Most students have a difficult time getting a car loan. Traditional banks see that you are a new driver out of high school or a pre-professional college student, and they immediately pass you over. Luckily there are ways to get a low-cost auto loan even if you have no credit, bad credit, or little income.
1. Consider a co-signer.
When you purchase a new or used vehicle with a co-signer, that person is agreeing to pay for the debt if you cannot. That extra reassurance encourages lenders to approve loan applications. Furthermore, working with a co-signer who has a good credit rating can lower payments and reduce interest rates by 3% or more.
2. Apply for the smallest loan that gets you the vehicle you need.
While a few thousand dollars may not buy your dream car, these small loans are easier to obtain and can help you build necessary credit. The loan can generally be refinanced for a lower rate later or paid off for a credit score boost.
3. Take on a part-time job.
With as little as $1600 per month, you can qualify for an affordable car loan for students. Some lenders require you to have stable income for a few months, while others look for employment over a year or more.
4. Shop around.
Car loan financing rates are at a historic low, so you have the opportunity to get great deals if you find them. Because our company works with a number of respected lenders, we can help you uncover the best loan terms that get you driving as soon as possible.
By filling out a short application, you can obtain an immediate review and a monthly payment that fits into your budget. Choose from a repayment period lasting 36, 48, 60, or 72 months for most new or used vehicles. Starting the process today locks in your low finance rate and helps you claim the best student car loans.