Students can get different types of car finance options with bad credit, no credit history. Before applying for college student car loans then there are 10 important guidelines which you need to consider, which can helps you getting best car finance deal even if there is no credit history, below given are the few guidelines.
1. Go for used car purchase: One should consider used car purchase; this will help even if one has fewer amounts of cash available with him and other student auto loans are pending, then a used car purchase is a better alternative than a new car. One can even contact used car dealership or any private party owners who want to sale their vehicles.
2. Ask for discounts from the car manufacturers: Few automobiles makers give special rebate to the students along with additional benefits like interest free time periods, zero down payment, extended warranties etc. One should prefer student car loans which is much cheaper than any other loans and has special discounts.
3. Prefer Pre Approved car loans: By getting pre approved car loans for students, one can immediately buy a vehicle when he is a graduate and takes up a job. In addition he can negotiate with the dealer as a cash buyer and get the best rates. Pre approved auto loans also helps the student to stay in his budget.
4. Prefer good conditioned used car: One should always prefer a good conditioned used car to avoid the overall repair and maintenance costs. Used car loans for student should only be taken if the cars are well maintained. One can even do a research on the used cars as there are many websites available online.
5. Confirm the history of the used car: Its vital to confirm the history of the used car which one intends to purchase, this is to make sure that the VIN- Vehicle Identification Number is correct and there are no accidents or any serious damages to the car and even the car is not previously stolen.
6. Compare different student auto loan quotes from different lenders: To get low car loan rates, it’s vital to compare the quotes from the different lenders. The repayment terms should also be compared; this will help one to choose the best car loan deal.
7. Bad credit Student car loans: There is no need to worry if one is rejected by the lenders while trying for bad credit auto financing, because there are many lenders in the market who are willing to offer guaranteed approval for bad credit auto loans. One should remember that car loan is considered as secured finance, where the vehicle serves as collateral against the loan amount. So even if the borrower defaults on the monthly payments of his guaranteed bad credit auto loan, then a lender can only seize his car and recover the principal loan amount.
8. Choose a right vehicle: It’s a vital for one to prepare a list of cars which he can afford to choose a right vehicle. One should consider the person’s car insurance while choosing the vehicle or else the car cost can reach higher.
9. Limit the car purchase within $ 20,000: One should limit the car purchase within $ 20,000 to ensure that he can afford his monthly payment on his auto loan regularly.
10. Avail Zero percent car financing in future: One can buy expensive and posh cars in the future at zero percent auto financing but for that he needs to have a good credit rating. Thus, make sure not to miss single payment on the car loan.