Auto Loan Tips for College Students

If you’re a college student, first off – congratulations! Continuing your education is a smart way to better your life. If you have no credit or even worse, bad credit, you might be worried that you won’t be able to finance a car to get around on campus. Don’t worry. Here are some great tips to help make sure you have the best possible chance of getting an auto loan.

Start Small

save on gas Auto Loan Tips for College StudentsSure, we all would love to have a large SUV or a sports car, but as a college student, you should be thinking about your monthly budget. With an SUV, you’re going to be paying a lot for gas. With a sport car, you may end up paying a lot more for car insurance. By choosing a reasonable and reliable car (that gets good gas mileage), you’re going to be able to make sure you make your monthly car payments, which could have an effect on your credit for decades to come.

Go Used

in her new car Auto Loan Tips for College StudentsWhile it’s nice to have a brand new car, even getting one a couple years old can save you a lot of money. Most cars depreciate or lose value quickly. If you’re a student and don’t know when you’re going to have a reliable good job, getting a car loan for something that’s already lost some of it’s initial value because it’s a few years old is a good decision.

Down Payment

The more you can pay upfront for your vehicle, the less the total price of the car or truck is going to be. Also, if you have a large down payment, you have a better chance at securing a car loan, even if you’re a college student with no credit or bad credit. Save up the summer before classes start and put down as much money as you can spare when applying for a car loan. A little more will go a long way.

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