Open navigation Main Menu Mortgages

Refinancing your existing loan Finding the best lender Additional Resources

Looking for a financial advisor? Try our three minute test and then match up with an advisor today.

Main Menu Banking

Compare Accounts Use Calculators Get help from bank reviews

Looking for a financial advisor? Take our 3 minute quiz and match the advisor you want today.

Main Menu Credit cards

Compare according to category Compare with credit requirements Compare with the issuer

Are you looking for the ideal credit card? Find it with CardMatch(tm)

Main Menu Loans

Personal Loans Student Loans Auto Loans Loan calculators

Find a personal loan in 2 minutes or less Answer some questions to receive offers with no effect on your score on credit.

Main Menu Investing

The Best Brokerages as well as Rob-Advisors. Learn the basics Additional sources

Looking for a financial advisor? Do our 3-minute quiz and connect the advisor you want today.

Main Menu Home equity

Find the most competitive rates Lender reviews. Use calculators. Knowledge base

Looking for a financial advisor? Do our 3-minute quiz and connect to an adviser today.

Main Menu Real estate

Home selling or buying homes Finding the right agent resources

Looking for a financial advisor? Do our 3-minute quiz and connect the advisor you want today.

Main Menu Food Insurance

Car Insurance Homeowners insurance Other insurance Company reviews

Looking for a financial advisor? Do our 3-minute quiz and connect with an advisor today.

Main Menu Retirement

Retirement plans & accounts Get the basics of retirement calculators Additional resources

Looking for a financial advisor? Try our three minute test and match the advisor you want today.

The search is open and closed.

Submit

A student’s guide to car buying Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our mission is to help you make better financial choices by offering you interactive tools and financial calculators that provide objective and original content. This allows you to conduct research and compare data for free and help you make informed financial decisions. Bankrate has partnerships with issuers, including but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Earn Money The offers that appear on this site come from companies that compensate us. This compensation could affect how and when products are featured on the site, such as, for example, the order in which they may appear in the listing categories and other categories, unless prohibited by law. Our mortgage, home equity and other home lending products. This compensation, however, does have no impact on the content we publish or the reviews you read on this site. We do not contain the universe of companies or financial offers that may be open to you.

SHARE:

The Page On This Page on This Page

Prev Next

Klaus Vedfelt/Getty Images

7 minutes read. Published August 31 2022

Authored by Dan Miller Written by Points and Miles Expert Contributor

Dan Miller is a former contributor writer for Bankrate. Dan covered loans, home equity and debt management in his writing.

Edited by Rhys Subitch Edited by Auto loans editor

Rhys has been editing and writing for Bankrate since the end of 2021. They are passionate about helping readers gain the confidence to control their finances through providing concise, well-studied and well-researched content that breaks down otherwise complex topics into digestible chunks.

The promise of the Bankrate promise

More details

At Bankrate we aim to help you make better financial decisions. We adhere to the highest standards of editorial integrity ,

this post may contain some references to products offered by our partners. Here’s a brief explanation of how we make money .

The Bankrate promise

Established in 1976, Bankrate has a long track record of helping people make smart financial choices.

We’ve maintained this reputation for over four decades by making financial decisions easy to understand

process and giving customers confidence in the decisions they will do next. process that is strictly followed by Bankrate.

You can rest assured that we’ll put your interests first. All of our content is authored by and edited by

They ensure that what we write ensures that everything we publish is accurate, objective and reliable. Our loans reporter and editor concentrate on the points consumers care about the most — the various kinds of lending options and the most competitive rates, the most reliable lenders, ways to pay off debt and more — so you’ll feel safe investing your money.

Integrity of the editorial process

Bankrate adheres to a strict code of conduct standard of conduct, which means you can be confident that we put your interests first. Our award-winning editors, reporters and editors create honest and accurate content to assist you in making the right financial decisions. Key Principles We value your trust. Our aim is to provide readers with truthful and impartial information. We have standards for editorial content in place to ensure this happens. Our editors and reporters thoroughly verify the truthfulness of content in order to make sure the information you’re receiving is correct. We have a strict separation between advertisers as well as our editorial staff. The editorial team of Editorial Independence Bankrate does not receive any direct payment by our advertising partners. Editorial Independence Bankrate’s team of editors writes for YOU – the reader. Our goal is to give you the best advice to aid you in making informed financial choices for your own personal finances. We follow strict guidelines in order to make sure that the content we publish isn’t influenced by advertisers. Our editorial team is not paid directly from advertisers, and our content is thoroughly checked for accuracy to ensure its truthfulness. Therefore, whether you’re reading an article or a review, you can be sure that you’re getting credible and dependable information.

How do we earn money?

If you have questions about money. Bankrate has answers. Our experts have been helping you master your money for more than four decades. We continually strive to give consumers the professional advice and tools needed to be successful throughout their financial journey. Bankrate adheres to a strict code of conduct policy, which means you can be confident that our content is truthful and accurate. Our award-winning editors and reporters produce honest and reliable information to assist you in making the right financial choices. The content created by our editorial staff is objective, truthful, and not influenced by our advertisers. We’re transparent about the ways we’re able to bring quality content, competitive rates and useful tools for our customers by describing how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for the promotion of sponsored goods and services or by you clicking on specific links that are posted on our site. This compensation could impact how, where and when the items appear in listing categories, with the exception of those the law prohibits it regarding our mortgages, home equity and other home loan products. Other elements, like our own rules for our website and whether or not a product is available in your region or within your own personal credit score can also impact the way and place products are listed on this site. While we strive to provide an array of offers, Bankrate does not include information about each financial or credit item or service.

If you’re a college student who wants to buy a car, you may have found it to be a little more difficult than you anticipated. While the possibility of car loans for students are available, many lenders are wary of offering loans to first-time buyers or those with limited credit history. But students can get student car loans can be arranged particularly if you have a reliable source of income, good grades , or a trusted friend or family member to co-sign on your behalf. How to buy an automobile for a college student if you’re a student or someone else with limited credit history there are ways to finance a car. Although you might not have the same choices as someone with a long-established job and credit history however, it’s possible. The process for obtaining a car loan as a student appears exactly like what it would for a postgraduate who is looking to finance. But if you’re in a lower-cost student budget, it this is a factor to consider. This is particularly true as average monthly costs are at an all-time high and used cars costing $515 and new cars even higher at $677 by the second quarter of 2022 according to . Take these steps before you start your car buying process. Create a budget that is realistic. Use the car loan to figure out what you can afford to spend every month. When budgeting, be certain to concentrate on the value of the vehicle, not just the sticker price. Consider saving for a downpayment. While saving for a could be a challenge as students, it could mean lower rates and more frequent installments. If you have time to spare, the ideal option is at the very least 20 percent of the price. But even if you can’t pay that much, try to budget to make at minimum a modest down cost. Find the best car for you. It is important to think realistically about the ideal car for your needs as a young man. While it may seem enticing to buy a brand new vehicle with the most recent technology, think about where you’ll be parking it, the amount of potential passengers you’ll have and even the price of fuel for a more luxurious option. Lock in financing. It is advisable to apply for a loan prior to shopping for a car either online or in personto be sure of the amount you can afford and skip out on markups at the dealership. In the case of a lender, prequalification will mean a soft credit pull. You should also be prepared to share necessary documentation to confirm the information you provide. Negotiate. It can be a bit daunting, especially for children. When it comes to car buying as a student, it is wise to bring an adult friend or an adult from the family. So you can will be more confident about pushing for the price you’re entitled to. But no matter what, remain confident and do not be afraid to walk away. How can you increase your chances of loan approval As with any loan that you apply for, the best affordable rates, terms, and approval are offered to those who have good credit. As a student with very little credit history, approval can be difficult. There are a variety of methods to increase the chances of getting approval for a car purchase as an undergraduate. Show a reliable source of income The best way to secure a car loan for a student is to show a reliable source of income. Before giving you a car loan, lenders will be looking to verify that you have a stable means of paying for the loan’s monthly payments. If you have a job and have a record of at minimum a couple of months of income, you’ll increase the likelihood of getting approved. Speak to banks or credit unions with which you already have accounts If there isn’t a reliable sources of revenue, or your income is fluctuating or seasonal it could be a problem getting a auto loan from the majority of lenders. If you have an account with a local bank or it is a credit union, you could contact it. It could offer student auto loans or other programs targeted towards people who are in the same situation. It is possible to talk directly with an loan manager or officer with approval powers. The major benefit is that it may be simpler to argue your case and convince someone in person. Find a co-signer A different option is to get an individual who is a trusted family member to sign your vehicle loan. When you have a co-signer, it is likely that the lender will also examine the credit history of your co-signer as well as income. The advantage can be the fact that your loan is much higher likelihood of being approved. However, one drawback is that the co-signer is legally accountable for your vehicle loan. If you’re not able make the payments, that could create friction in your relationship. Make sure you have good grades. Similar to lenders that consider credit history, some lenders rely on their GPA as a way to determine loan approval. If you have a good GPA you should consider sharing it with prospective lenders. While not all lenders factor it, in some instances, good grades can mean more competitive rates. Where can you shop for cars while students Much has changed in the ways people purchase and sell cars through the years, however one thing has remained the same -If you have the time to look around and shop around, you’ll save money. The less time you’ve got to look at all the choices, the less you’ll pay for your vehicle. Family and friends Getting a car vehicle from a family member is likely to be the ideal situation. Buying a car with someone who you can trust reduces the chance that you buy the wrong car. Plus, depending on who you’re buying it from, they might offer a deal on the price. While this may be the best scenario, if no one has ever tried to sell a car then you’re out of the market. Local car dealers Although a lot of instances have gone online, there’s still value in shopping around at local dealerships for cars. Almost all dealers will have their inventory online as well, so you can see the cars available before you head to the showroom to take a test drive. While making use of the internet to assist you find a car is a good idea, many people enjoy taking a look at and experiencing the vehicle in person. On the internet, in addition to checking out the websites of local used and new dealerships, there are numerous other . When it comes to buying online, you can buy securely using dedicated online used car marketplaces, like or . Facebook Marketplace, Craigslist and eBay are among the sites on which you can find people selling their vehicles privately and other items, but keep an eye on what to lookout for . Other costs to keep in mind Remember that it’s not just the cost of your car loan that will affect your budget. Make sure that you have space for these other car-related costs as well. Registration and sales tax. These taxes and fees vary according to the state and local authority So, make sure to check the amount they’ll cost you. Expected cost: Between $400 and $700 depending on the state you live in, according to . Insurance. A majority of states require you to have at least liability insurance. Check around with a couple of different brokers and agents to determine the type of coverage which best meets your needs. Expected price: $1,771 based upon your state of residence, driving history and vehicle type according to . Parking. Particularly for student at a college, you might need to pay for parking on or near campus. Expected cost: $362 for the year or $181 per semester, according to research conducted by various universities. Fuel. As prices for gas rise, the cost of fuel could have a significant impact on your budget. Expected cost: Average $3.84 per gallon as of the close of August 2022 according to . Repairs and maintenance. In contrast to other types of insurance, car insurance doesn’t usually provide routine maintenance services, such as oil changes. It is important to ensure that your budget allows money for these things. Expected price: $9,666 when buying new vehicles as per . How to drive a car without buying If you’re having difficulty being eligible for a student auto loan or have concluded that it’s not right move for you, there are other options. Leasing When you lease, you receive a car to use for a specific duration and amount of miles. At the end of the period of the lease and as long as there is no damage to the vehicle and you’re not exceeding your mileage limit and you’re not in violation of the lease, you can hand the car it back to your leasing provider and drive off. Since you don’t actually have ownership of the vehicle and you only have it for a certain period, the monthly payment for leases is typically lower than a loan. If you want to close the lease instead then you could, opt to do so if it’s included in the lease agreement. Renting a car if you only need a car very occasionally, it is worth renting a car when you’re in need of one. While renting a vehicle is more expensive on a daily basis than a car payment, if you only need the car for a few times per year, it could prove to be more economical. If you’re renting a vehicle and you don’t have to be concerned about maintenance costs or fees or taxes. Car sharing is another option, as is joining the car sharing service. Turo is a peer-to-peer vehicle rental service where you can lease cars directly from the owners. It will be similar in cost and convenience to renting a car through a company. If you’re in a region where they’re accepted, you can sign up to the car sharing services like Car2Go and Zipcar. These services usually require a monthly or annual membership and allow users to rent cars at less per hour or by the day. The bottom line: While it might seem difficult to obtain auto loans for students in college, it is possible. Do your homework to find a good car and explore the possibility of a co-signer if feasible. It is also advisable to speak with various lenders to compare rates and find the most affordable deal. Consider all of the extra costs associated from owning a vehicle and decide if you can get by with alternatives like renting, ride-sharing or public transportation. Find out more

SHARE:

Written by Points and Miles Expert Contributor

Dan Miller is a former contributing writer for Bankrate. Dan covered loans, home equity and debt management in his work.

The edit was done by Rhys Subitch Edited by Auto loans editor

Rhys has been editing and writing for Bankrate from late 2021. They are committed to helping readers to manage their finances through providing precise, well-studied information that breaks down complicated topics into manageable bites.

Auto loans editor

Related Articles Auto Loans 6 min read Mar 02, 2023

Auto Loans 2 min read Oct 21, 2022

Auto Loans 3 min read Sep 20 20, 2022

Auto Loans 2 minute read March 03, 2015.

About

Help

Legal Cookie settings Do not sell my personal information

How we make money Bankrate.com is an independent, advertising-supported publisher and comparison service. We receive compensation for placement of sponsored products and, services, or by you clicking on specific links on our website. This compensation could influence the manner, place and when products appear in listing categories, unless the law prohibits it for our mortgage or home equity products, as well as other home lending products. Other factors, like our own website rules and whether a product is offered in the area you reside in or is within your personal credit score can also impact the manner in which products appear on this site. While we strive to provide the most diverse selection of products, Bankrate does not include specific information on every credit or financial product or service. Bankrate, LLC NMLS ID# 1427381 | BR Tech Services, Inc. NMLS ID #1743443 |

|

(c) 2023 Bankrate, LLC. A Red Ventures company. All Rights Reserved.

If you have any inquiries concerning where and ways to utilize same day payday loans online no credit check (lenderoq.site), you could call us at the web page.