As with all new inventions, when cars first hit the market they were a luxury item, but quickly became a necessity. Youngsters these days can’t wait til they are old enough to drive. But, not too many parents are willing or able to buy their child a car of their own! That leaves the parents in the undesirable situation of driving their kids where ever they need to go. As kids get older thoughts of buying a car themselves starts entering their minds.
A Student and His First Car Loan
If you are a student in this situation you are probably wondering how you can get the money you need to buy a car. Even if you have a part-time job, it probably doesn’t pay enough for a large monthly car payment. You also haven’t had time to establish a credit history. Your parents may be able to help by co-signing a loan for you. This makes it much easier for you to get your first loan. But, if your parents can’t help, you still have other options.
Special Student Loans
Fortunately, there are student auto loans available that offer reasonable payment options. Including the option to delay payments until after you get a job or even after you finish college. Arrange a meeting with the lender to see what you can work out. The process is fairly simple and doesn’t require a lot of paper work. You will need a down payment. The size of your down payment will determine the amount of money you need to borrow. You might be able to get an unsecured loan, but if your down payment is large enough you can use your car as collateral and get a secured loan. This will reduce the risk to the lender and lower your interest rate.
Lenders Want Your Future Business
As a potential future customer lenders want to help you establish good credit, good repaying habits and smart buying practices. After all, every one was a first time buyer once. Every one at some point had to establish a credit history. If lenders don’t help first time car buyers, they are dramatically reducing their own future business!