If they don't offer "Car Buying 101" at your college or university, you're not alone. Making a vehicle purchase can be an intimidating prospect even for buyers who have had a little experience with dealerships.
If you're just getting your feet wet in the world of auto buying, there are some things that you'll want to know before heading over to the car lot. And the good news is that if you're a student or a recent graduate, you may get a few price breaks, especially if you're in the market for a new vehicle.
Auto Makers Want You to Buy New
Sure, you may be thinking that a used car is going to best suit your budget and you may be right. However, new cars come with a lot of perks such as warranties and rebates. You should at least keep an open mind towards this option and take the time to have a look at the student-specific deals that are out there.
You may get cash back.This is commonly referred to as a "rebate" and a lot of manufacturers offer them. However, if you're a student or have recently been a student (usually, in the past two years), you may be offered a bigger rebate. And most dealerships will allow you to use this rebate as part or all of your down payment.
You may get a break on your interest rate. While this won't save you anything right up front, it will save you plenty of money down the road. For example, if instead of 15% interest on a $20,000 car, you only have to pay 10% interest, you'll end up saving $1,000.
Your first payment may be delayed. This one is less about getting a price break and more about establishing a safety net. If you're allowed to skip your car payment for a month, why not put the money that you would have used for a payment into a savings account? There, the cash will draw interest and you'll have backup money to make a future payment in case there's an unexpected expense, you lose a job or you're out of work due to injury or illness.
We'll Make Your Financing Easy
Here at Drivers Lane, your lack of credit is no problem. Even if you have bad credit, we can still help you to get the auto loan that you need. We'll put you on the road to car buying success quickly with our fast and secure online application. Go ahead and apply from the comfort of your own home, apartment or dorm!