Whether you are struggling under the weight of school debt, or just don’t have a credit history, it can be hard to take on the expense of another loan while in school. Still, having a vehicle can make a huge difference in your school, work and life options. When it comes to finding the best car loans for college students, there are a few things to keep in mind to be sure you get the very best rates and options. When carefully researched, a car loan can support your long-term credit health, as well as get you a solid vehicle to carry you through life.
New car vs. used car loans for students
Older cars are going to be less expensive, but you may also end up paying more for repairs down the road. Be sure that you get a high-quality used vehicle. New cars are definitely more expensive, but will have greater trade in value once you have paid them off, and fewer repair needs right off the lot.
When looking at vehicle options, keep in mind how long it will take to complete the loan. Shorter term options will allow you to trade in the vehicle sooner, but will cost more each month.
Look at your budget and shop around
Taking out a loan is a commitment just like finding the right college. You need to find the fit that is best for you. Take a look at your budget and figure out what you can afford to pay each month, and what kind of down payment you would be able to afford. Usually a bigger down payment will reduce your monthly payments. Then take a look at the banks and financial institutions in your area. Do they get good reviews from past customers? Are they offering any deals for students?
Taking out a car loan is a big investment, but if you are regular on payments it can really improve your credit score, which will make future loans easier to get.