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College Student Auto Loans

Bobby Said:

Auto loans for a college student?

We Answered:

You have no chance at a traditional loan without a cosigner.

Auto loans are for people who are employed full time with good credit.

You should be able to walk in any bank or credit union and get an auto loan if you have a cosigner with good credit & income.(They will be on the hook if you don't pay)

Most of them don't care who you buy the car from.
But, some dont want to bother with loans under $7500 so you have to check around.

Now, a buy here pay here dealer will finance you if you have a down payment.

most cases, they are REALLY bad deals.

You will often get a car that is worth (At wholesale) not much more than your down payment yet you will owe many thousands more plus a high rate of interest.

For example, if you put $800 down, you might get a car with a wholesale value of $700-1200 and your balance to be financed will be $3500-3900 or more. Plus interest at 21-29%.

On somewhat nicer stuff, say $1500 down, you might get a $2500 wholesale unit
Yet owe $5900-6900 more plus interest. And at 21-29% that interest can REALLY add up.

Most cars are sold as is. Any "service contracts" they sell are usually worthless too.

More often than not, the car will break down sometime before its paid off and many buyers stop paying. The dealer repos it and reports the repo on their credit which ensures continued bad credit for another 7 years.

So, TRUST me when I say your best bet is to save up $1200-2000, shop around for a really good deal from a private party, have an independent mechanic check it out only AFTER you are sure you want it and have agreed on a price. Then have him make sure its a good car.

There is no such thing as a "good deal" at a buy here pay here car dealer.

If you pay as agreed, you are making up for all those who do not. If you do not, some other guy is making up for you.

And BHPH dealers often know nothing or do nothing to their cars. They go from Auction to their lot to you. They have no idea whats wrong or might go wrong soon. And they don't really care.

With bad or no credit, you simply cant afford to borrow.

Marlene Said:

college student to get auto loan?

We Answered:

Without a co-signer, an established credit history, or a job, you will find it difficult to impossible to get a loan.

DO NOT be tempted get a loan from a "buy-here-pay-here" used car dealer, who will sell you an overpriced junk car, set strict payment terms, charge outrageous interest rate, and will repossess the car when you are late for one payment.

I suggest finding a friend or family member who will either co-sign for you or loan/give you the money you need to get a good older-model used car until you can get better established financially.

Good luck.

Mark Said:

college bound student auto loan?

We Answered:

no there is not....

Jared Said:

What's the easiest and most affordable way for college students to get auto loans?

We Answered:

Financed cars is more expensive to insurance cause it requires full coverage. You can compare how much you would pay for full coverage of this car using this tool - carquotes.sinfree.net

Norman Said:

What do you think the maximum amout a college student should get an auto loan for?

We Answered:

you need to answer that question yourself based on your cash flow and other debts. A 17000 loan for 60months at 6.24% APR will be around $334/mo.

On top of the car loan, don't forget you need to pay for gas, insurance and have cash on hand for routine maintenance and unexpected breakdowns. As a rough estimate, I budget around $2000/yr for maintenance for my WRX

Everett Said:

How much can I take out in student loans?

We Answered:

Your dads financial situation has nothing to do with how much you can borrow in federal student loans. The max you can borrow as a dependent freshman is 5,500 per year if you attend full time. More if you are classified higher. If you are just now starting (didn't attend school during the spring). The max amount you can borrow would be half of this.

The stafford loans have a 6.8% interest rate and you don't need a cosigner to take out these loans.

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