Getting A Student Car Loan

Many students find they need a reliable car for basic transportation.  They may use it for going to and from a part time job, getting to and from campus, or going home on vacations.  If you are in need of a car and don’t have enough cash to buy one that is reliable, consider looking for a student car loan.

Credit Unions
One of the very best places to start looking for a student car loan is at a credit union.  A credit union is generally much more willing to work with a student who has a limited credit history, poor credit history, or a limited income.  They may or may not require a co-signor on the loan, depending on factors such as the amount borrowed, the amount of the down payment, and available income.  Interest rates at credit unions are typically lower than those found at a bank.  Many credit unions even have reasonably priced repossessed vehicles available for sale.

Banks
A bank is typically a bit more strict about their lending, so you will most likely need a co-signor to obtain a student car loan.  There are some exceptions, though, so shop around and check with several different lenders.  Try online banks, too, because they are a rapidly growing factor in the lending industry.  Interest rates at a bank are typically a bit higher than those at a credit union.

Car Dealers
If you are not able to get a student car loan through a credit union or bank, many car dealers offer financing programs of their own.  They typically carry higher interest rates than most other lending sources, but if it is the only way for you to get a car loan then it’s better than nothing.  Some dealers will offer a vehicle lease as an alternative to buying a car, but this is seldom a good idea or a good deal for students on a limited income.