In most of the Colleges and Universities across the country about 98 percent college goers drive a car onto campus. Even in small towns or rural areas where distances are longer, a personal vehicle becomes a necessity. People do need to attend classes, jobs, do groceries and socializing. The odd one out may be ridiculed to the point of embarrassment, not to mention wasting extra time and energy in alternative transport. You can see why student auto loan with no job are popular now. But you need to seriously think before committing to one of these debt burdens.
Only a few already own a personal vehicle as they go in for higher studies. Some may still be lucky enough to have their parents’ help in getting a new or used car. Others like you and me can only ignore this nagging problem so long. Sooner or later, we are bound to give in to the urge of this requirement. Since a cash purchase is out of the question, looking for car loans slowly edges up the list of necessities until it becomes top priority. To say student car loans without a job can be difficult is the least of the problem as well as undermining yourself and the auto finance industry.
What are the problems you are likely to face? Can you seriously consider a few alternatives?
Car loan problems for college students
Young people pursuing higher studies may still be without a job. Even if you take up part time jobs your earnings may not be sufficient for an auto loan. Deferred car loans may pose more of a problem to your career post-graduation. Very few youngsters have establish enough credit history that banks or credit unions may agree to work with them. Alternative lenders and dealers do offer benefits of car loans for students no job but these may prove to be too expensive for you. Borrowers with low credit scores and incomes face an annual percentage rate (APR) as high as 29.99%.
In short, students and college goers end up paying almost double the cost of a used car they use only for a couple of years at the most.
Alternatives to unaffordable car loans for students
Reject or demolish the idea of pricey loans or not getting on without a personal vehicle.
1. Check out available conventional auto loan
In case you have a good credit history, ignore attractive ads and go to your bank, credit union or a local car dealership. They will offer you competitive, lower rate loans on proof of income and ability to afford payments.
2. Consider a co-signer
Cosigner with good credit history shares the responsibilities to qualify for cheaper loans. Be sure you can handle the expenses without damaging your relationship.
3. Save for a cheaper car
Do not try to overreach yourself. Showing off is not for everyone. Getting by within your current budget is possible with student car loan no cosigner. After all you need to go from point A to point B with convenience.
4. Consider car sharing
Millennials are realizing the practicality of hiring instead of owning outright. This is keeping your operating costs down for daily life. Ride sharing apps are popular to call up a ride easy.
However, do the math of ride sharing costs vs monthly car payments and then choose accordingly.