How to Finance a Car as a College Student

finance student car

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  • If you’re a college student who wants to buy a car, you’re likely concerned over how you’ll afford to make your payments.

    Due to the costs of car ownership and the rising costs of tuition, many students are opting for public transportation and carpooling to get around.

    However, this is problematic for those who need to commute to work or don’t have many public transportation options in their area. Thankfully, there are ways to make car ownership more affordable. Here are some of the best tips for financing a car as a college student.

    Buy the Display Model

    Some dealerships offer vehicles that are being displayed in their showrooms at lower prices. Display cars are often taken on test drives by potential buyers who’ve also tried out many of the other vehicle features. This means that the display vehicle is technically considered to be near-new or used instead of brand-new, and this classification usually comes with a discount.

    Because they are the vehicles taken on test drives, they are generally also well-maintained to peak conditions by the company, so despite the discount, you’ll be getting the best-maintained model in the dealership if you can get the display model.

    Get the Basic Insurance Coverage

    Most states require people by law to have at least liability insurance coverage. It’s nice to have other coverage features on your insurance plan, but you may end up paying more for certain types of coverage that aren’t practical. By not paying for coverage add-ons such as paint protection or rental car insurance, you’ll be charged lower monthly premiums.

    However, you may want to consider adding on roadside assistance coverage so that you’ll be better protected if your car ever breaks down or gets involved in an accident. LA Insurance or another provider in your area can put together a plan that includes the right amount of coverage at the lowest rate possible.

    Inquire About Student Financing Options

    Some financial institutions offer car loans that are specifically for college students. These loans have been designed for people like you who may not have much of a credit history or a particularly large budget. It’s important to choose a loan that has a low interest rate so that you’ll have an easier time paying back the lender.

    Another way that you might be able to secure a lower interest rate is to have someone co-sign on the loan to give the lender additional security in the loan. This is best done by a parent that has a strong credit history themselves. You can also typically find several specialized student loans designed to be used as car loans for students.

    other valuable tips:

    Buy an Older Model

    There are many older vehicle models that are still considered new because they haven’t been sold yet. By snagging one of these older models, you’ll be able to save money while still having a vehicle that’s reliable. You can find especially good deals on older models during vehicle sales seasons, which often run from October through December. This is when dealers are desperate to move their older product out to make room for the coming brand-new models, which makes negotiating for lower rates much easier for you, as well.

    It’s possible to afford both a car and college if you invest your money wisely. Take your time to consider several dealers and their particular sales and promotions that you can take advantage of. Doing your research ahead of time can save you thousands of dollars and make car ownership affordable for even a college student.

    Image Credit: Pixabay

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