College Student Car Loans – The Yeas And The Nays

Students first have study and classroom schedules. The average student has at least a part-time job. And, if they have the time (and they can usually find it) they have a bit of social life. Having a car can cut out long bus rides or treks by bicycle or on foot. And then, of course, there are the bills – books, tuition, lab fees, supplies, clothes, food, and beer. These tight budget constraints can seem a great impediment to getting a car loan. Before you step out to secure an auto loan, educate yourself on the car and financial markets so you can avoid the pitfalls so many young borrowers encounter when attempting to get a decent car. (Decent – not a Corvette.)The Yeas of Financing a Car for a College StudentMost young folks do not have much of a credit history, if any at all. That is okay. At least you do not have a negative history. Believe it or not, some lenders find this appealing and are actually eager to become your first creditor. So, taking out an auto loan for a student is a relatively simple endeavor that requires only a few basics: Proof of identity (bona fide government or school issued photo ID). Proof of income (or a co-signer). Proof of residency. Proof of enrollment in a college or university. Proof of schedule (full or part time). Proof of social security number. Another big plus is that some auto dealers, and even manufacturers, grant special discounts for college students that could save a bundle over the length of the loan.The Nays of Financing a Car for a College StudentAs with any venue, though there are many reputable car dealers around, there are the usual sharks that are eager to take advantage of an inexperienced buyer -- especially a college student aching for some wheels. Some dealers will pad loan interest rates, sell a vehicle for an exorbitant cost, and even use pressure tactics. (I am the best around. You will not get one like this at this price. This car is practically sold already. And the scams go on.) They love to flash the paper in your face to sign while you are sitting in the drivers seat. The best way to deal with the pressure and hard-sell tactics, is to already have a loan set up with a third party lender. Then you are less apt to sign your young life away to an on-the-lot financier. The final considerations are just the plain old questions: Can you really afford it? Will the payout in terms of time and money saved really make up for the cost of the loan?Do Not End Up Eating Ramen NoodlesTuition and other class-related materials can be overwhelming. Add living expenses and other money-vacuums surrounding every college student, and taking on car payments can be considered exorbitant when young folks are even taking out loans just to get through four years of learning. Meet these demands by taking the time to search out auto loans that include terms you can live with – without starving. Eating Ramen Noodles is okay three or four times a week, but you cannot live on it. If you need additional assistance, seek out a qualified financial adviser. You may even be able to find one at your school student union or at counselor offices.