Whether you commute to class or are away from home for school, sometimes a car is necessary in college. As a college student, it can be difficult to get auto financing if you have little to no credit history. So, then, how do you get a car?
Check out Auto Manufacturers’ Student Car Loan Programs
Many lenders offer car loan programs designed for college students with little to no credit near graduation. Major car brands such as Ford and GM have various student auto loan programs available through their finance arms. Some common offers these types of programs include are low interest rates and extended pay periods.
In order to qualify, you’ll need to either have a current source of income, or a letter from your future employer stating your projected income and start date. Each make’s program is different, so it’s important to read the fine print and ask the lender any questions you may have about the loan requirements.
Consider a Cosigner
Because credit is a big determining factor in auto financing, many lenders may ask a student to have a cosigner on their loan. The cosigner is someone, usually a parent or close relative, who will be equally responsible for the loan. Like the student, the cosigner must meet the basic loan requirements – including income – with a good credit history. It's also sometimes possible to make a parent or close friend the primary borrower, with the student as the the cosigner.
Shop Used Cars
After you find the financing you need, you should be looking into an affordable used car. While a brand new car may sound nice, consider your budget and what you need the car for. If you’ll be commuting daily, you’ll want a car with good fuel economy. If you plan on using the car for moving in and out on your own, you’ll want to consider something with more space. A good tip is to use online tools such as our paycheck calculator to determine how much you can afford each month. There are many reliable used cars out on the market. It just takes some extra research to find the car for you.
Bottom Line
If you’re a college student and have little or no credit, it can be difficult to find auto financing, but Drivers Lane wants to help connect you with a local dealer that's qualified to work with buyers who are either just starting out with credit or have damaged credit.
Just fill out our simple and secure auto loan request form to begin the process. Our service is free of cost and obligation, so what are you waiting for? Get started today!
