Last Updated on
Are you thinking of Buying a Car for a College Student? Owning a car is important because students who live far from school can travel fast and conveniently. Plus, it teaches one how to be responsible because cars require a high level of care.
In order to purchase a car in college it’s important to first list down your needs. This will help you to narrow down the best cars for college students that are within your budget. Let’s take a look at them in detail
Tips on Purchasing a Car for a College Student
Table of Contents
1. Your budget
In college, most students have part-time jobs. Despite having burning desires to own high-end autos, a student cannot afford a Ferrari while relying on part-time jobs. However, you can still buy a brand new modest fuel-efficient vehicle for $15,000. You can also get a good quality used-car for $10,000.
Buying a car within the $10,000-$15,000 range is ideal for college students due to one reason. At this value, you can easily apply for cheap car insurance quotes. You’ll also afford to pay your auto loan installments on time.
2. Age of the car
If you’re planning to buy a used car, it’s advisable to purchase a model that’s less than eight years old. You want a car whose parts are still in great condition. Owning a car that’s within this recommended age bracket enables you to easily obtain spare parts.
Make sure you bring along an older friend or relative who’s good with cars. Sometimes, car salesmen intentionally deceive potential buyers about the state of motor vehicles on sale. Having an experienced car buyer by your side ensures that you get value for money because you have enhanced bargaining power.
3. Availability of cheap car insurance
Owning a car involves recurring expenses. One of them is auto insurance paid on a monthly basis.
As a college student, your biggest priority is rent and tuition fees. So, including an extra monthly expense can affect your current financial situation. Fortunately, you can qualify for cheap car insurance quotes by applying for a Good Student auto insurance cover. This insurance plan is available to full-time college students aged 25 and below. You need to have a cumulative GPA of 3.0 and maintain it throughout your course.
Have you heard about the resident student auto insurance cover? Auto insurance companies offer hugely discounted quotes to full-time college students who study 100 miles from home. You need a clean driving history to qualify for this plan.
4. Fuel consumption
In this world, you’re guaranteed one thing. Fuel prices will always keep rising.
Smart college students keep their recurring car expenses low by purchasing cars with low fuel consumption rates. This ensures that you still afford your priorities and little campus luxuries without having to borrow loans. Even when the price of gas increases, your car’s economical fuel consumption minimizes the financial impact.
5 questions that come to mind when Buying a Car for a College Student using Auto Loans
1. Can you get a car loan as a student?
Fortunately, Complete Auto Loans offers college student car loans. It’s obvious that millions of Americans begin building their credit ratings while in college because that’s when they have access to real jobs. Some of these college students have negative credit ratings due to a few skipped credit card payments.
If you have a credit score above 719, you can get a car loan for a new motor vehicle. In addition to providing sound financial advice, Complete Auto Loans will provide you with important tips on how to lower car maintenance expenses.
2. How much do I need to put down to get a car?
At Complete Auto Loans, you don’t need to put down a cash deposit to get a car on credit terms. Why? Because some car buyers prefer longer repayment periods that consist of the down payment and interest.
If your financial position allows you to save up a couple of thousand each month, then paying a cash deposit for a car has several benefits. The deposit can lower your auto loan monthly installments by up to 30-40 %. Since payment history accounts for 35 % of a borrower’s credit history, paying a cash deposit enhances your credit ratings.
3. Can you get a car loan with no credit
If you’re a college student without a credit rating because you don’t have student loans, credit cards or any outstanding credit purchases, Complete Auto Loans will help you get a no credit check car loan. You’ll also receive help on how to build a good credit rating by learning how to pay your no credit check auto loan installments on time.
4. Will you get a better deal paying cash for your car?
A cash purchase gives you full ownership on the spot plus you don’t need to worry about auto loan installments. This is an ideal option for college students who don’t have stable jobs. Imagine how hard it would be trying to keep up with auto loan installments, rent, and college tuition fees when one doesn’t have a steady paycheck.
An auto loan is costly than a car purchase because you pay interest in each monthly installment. If you switch to a car refinancing plan, you’ll still spend more money than a cash purchase.
5. Can you get a car loan with no job?
Absolutely not. Creditors need to confirm that you have a reliable source of income to ensure that you pay all your installments on time.
Are you ready to get that Car?
If you’re planning to apply for a student auto loan, make sure you download your credit report from FICO. Go through it to see whether there are any unpaid debts which you already cleared and follow up with the relevant creditors. Your credit score determines the interest rate charged on your auto loan.
Also, don’t forget to bring along an experienced car owner to help you pick a good car. If you need further assistance on how to get a college student car loan, Complete Auto Loans is always willing to help.