Learning About Car Loans for College Students

Getting through college not only means a lot of studying, it means a lot of money. Take this pop quiz to see if a car loan is really necessary to solve the transportation problems of a student.Question #1: Is a car really necessary?If students lives are anything, they are complicated. Class schedules can be screwy. One class may be early in the morning and another can be late in the afternoon, with a lot of time in between. Most students have at least a part-time job. Some students must live off campus. Connecting all the dots of these venues can mean a lot of walking, biking, or bus riding. Many other considerations must come into play when figuring the usefulness of a car and its resultant costs. And young buyers should educate themselves before stepping out to secure a car loan so that they may avoid the major problems that befall many young borrowers.Question #2: What are the positive factors regarding a student car loan?Most young folks do not have much of a credit history when they embark on their voyage through the straits of higher education. At least they do not usually have a negative credit rating. This virgin credit history is generally appealing to lenders and they are usually eager to be the first lender to young folks. A college student usually does not have a problem finding a lender willing to finance a car. Only a few basics are required: Proof of identity (bona fide government picture ID, passport, school ID). Proof of residency (utility bill, campus housing receipts). Proof of school enrollment (full-time or part-time). Proof of job or cosigner. Indeed, many car manufacturers commonly grant special discounts that can save students a lot of money over the length of the loan.Question #3: What are the negative factors regarding a student car loan?Hopefully, a young person does not run into a shark as their first experience with a car dealer or a car lender, but they are out there. Regarding students as still wet behind the ears, they can be quite willing to take advantage of a first-time car buyer. They are apt to pad the interest rates, sell a car at an exorbitant cost, or pressure a young buyer into signing an agreement that they do not fully understand. If it can be arranged, the best way to approach a car lot is with all financing matters settled. A car the borrower wants coupled with a pressurized dealer can lead to financial carnage.Question #4: Can you summarize the factors regarding a student car loan?On top of the usual expenses a person on the economy has to deal with -- housing, food , clothing, transportation; a student carries a lot more expenses -- tuition, books, supplies, various fees, and all the other little things that require cash. Is it realistic to add a car payment on top of all that? That depends a lot on the answers to question #1. Searching out car loans specifically aimed at students could result in a very easy to afford transportation solution. Hopefully without having to subsist on instant noodles. A student may be able to obtain lots of helpful advice regarding transportation and car loans by approaching school counselors or student union agents. Not all education happens in the classroom.