Student’s Special: Own Your Dream Car

By: apurva | Posted: 10th January 2008

Car is indispensable for everyone, more so to students. They have to commute to libraries, classes, for reference in other places, and to socialize. Student car loans are a boon for a college or university students who need a car, but do not have the necessary financial resources for buying one. Cheaper car loans can be obtained from banks, traditional credit unions, online lenders and other lending institutions. Students can choose the loan program that would suit them the most, depending upon their individual situations. To make the car loan application process easy and comfortable for students, the online car loan application form is also available.
There are many concessions in student car loan schemes, such as:

  • Improving Credit History - Even if a student has a bad credit history, on obtaining this loan, the credit history improves.
  • Surety - With a co-signer, the student can obtain car loans, irrespective of his/her credit history. But the co-signer should have a good credit history and will be held responsible incase of default. But such defaults are rare in the US.
  • No Collateral - Collateral is not possible for a student, hence, a surety can help the student avail a low interest rate. The car bought and the co-signer will be the security till the loan is paid off. Even though certain lenders offer loans despite bad credit history, they may not have a low interest rate car loan. Hence, the prices and interest rates offered by different lenders should be compared before buying.
  • Extended Repayment Period- The repayment duration depends on the loan taken; shorter duration for smaller loans. Normally, the repayment period is 5 years to 7 years. Bulk settlement or easy monthly installments (EMI) can be made. These loans are extended till the student gets employed. These loans are available only for US residents, enrolled in a college or university.

    Precautions

  • Students should be cautious while choosing lenders. They should choose only those who offer comparative terms and price.
  • Terms and conditions are to be thoroughly studied before going in for a loan.
  • Overhead charges, hidden costs (if any), maintenance and fuel costs are also to be taken into account, along with the price of the car.

    Prior planning such as, wiping out credit shortfalls and other loans, saving for overheads and surprise charges are necessary. Spotting a good dealer and car type and the compatible loan are equally important. Armed with such information, students can enjoy driving a desired car, clubbed with a manageable pay back.

    Student car loans facilitate acquiring a dream car at new car loan rates and with easy pay back schemes. There are many concessions in this scheme, such as no collateral, low cost finance, extended repayment period, etc. Prior knowledge is required to find a good dealer at maneuverable terms for auto loan financing.

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    Tags: lending institutions, loan program, bad credit history, installments, car loans, repayment period, application process, incase, credit unions, boon, co signer, concessions, loan schemes, improving credit, university students, surety, student car, car loan application