If you are a college student, you may be on a tight budget already. Therefore, purchasing a car may not be affordable for you. The good news is that Handy shares some car buying tips for college students like you. By following these simple tips, you will be able to purchase your first car as a college student. Read on to find out more.
Go for a Used Car
First of all, you don’t have to purchase a high-end car that comes with the most advanced features. The price of a used car is lower than the price of the latest models. Apart from saving money on the price tag, you can also save money on sales tax and insurance premiums.
Just because you are going to purchase a pre-owned car does not mean you cannot benefit from the latest technologies. Even used cars come with tons of innovative features along with enhanced comfort, performance, and safety. So, there is no harm in opting for a used vehicle.
Start Saving Early
If you want to afford a car as a college student, make sure you put away some money to make a down payment. You can save plenty of money by eating out less often and making your own coffee and favorite dish at home.
It is better that you have a budget in place to save for your car. For example, you can put aside 25% of your monthly income for this purchase. If you start early, you can turn your dream into reality much faster.
Improve Your Credit rating
You must have a higher credit rating if you want to purchase your desired car in college. Ideally, your credit score must be at least 700 or higher. And this will increase the likelihood of your application approval. Plus, it can help you lower your monthly payments, which will make it easier for you to purchase your car.
If you want to build your credit rating, we suggest that you apply for credit less often, repair your credit file, and make payments on time.
Get a Steady stream of Income
If you have a steady stream of monthly income, most lenders may happily approve your application. After all, they want to make sure you have a steady stream of income to pay back your loan.
As a college student, you can look for a part-time or full-time job opportunity. For instance, you can apply for a campus position in different departments, such as teaching and IT. Besides, you can look for a paid internship to gain some real-world experience and earn money on the job.
Look for a Cosigner
If you want to get approved with poor or no credit history, you can get a consigner. They can help you choose from many loan options, help you get the best car, and improve your credit score, to name a few. But you have to make your money payments on time. Failure to make payments on time will affect the credit score of both you and your consigner.
In short, if you follow these 5 tips given by Handy, you will be able to purchase your desired car as a college student. The idea is to make it easier for you to make this purchase easier if you have zero or poor credit ratings.