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One of the most common misconceptions about financing a car as a college student is that it’s simply not an affordable option for younger drivers. Indy Car Financing is dispelling this rumor, and our experts have developed this helpful guide for college students interested in financing a new vehicle. The following tips will help make financing a car as a college student an attainable goal.
Make a Budget and Understand Your Finances
The first thing to do when financing a car as a college student is to come up with a realistic budget that accounts for your current financial situation. When vehicle shopping, make sure that you finance a car that has payments you can afford. Don’t forget to include the cost of taxes, maintenance, fuel, and car insurance in your budget, too. With these expenses in mind, you should be able to come up with a budget that will allow you to purchase a vehicle while making the proper payments on time.
Check Your Credit Score and Build Your Credit
If you’re a college student that doesn’t use credit or isn’t sure of their current credit score, you need to learn about your credit history before financing a car. Since loan interest rates are largely affected by your credit score, the lower your credit rating is, the higher your monthly payments will be. To improve your credit score, request your annual free credit reports and review them for errors. You may also need to build up your score to ensure a solid rate. Once you’re confident in your credit score, you can start shopping for loans.
Shop for Student Deals and the Best Rates
To get the best rate you can when financing a car as a college student, make sure to shop around for special deals that include college discounts. It might take some hunting, but there are auto manufacturers that do offer factory-direct financing options for drivers who are enrolled at a university, recently graduated, or who are returning to school. The goal is to find the lowest financing rate possible to help save you money in the long run.
Once You Secure Auto Financing, Stay Current on Payments
Now that you’ve found the right loan, make sure to pay your monthly bill on a regular basis. Not only will this keep you out of debt, but making your monthly payments on time should also improve your credit rating, making you a more financially responsible customer, which is more appealing to lenders.
Armed with this knowledge, financing a car as a college student should be a less stressful endeavor. If you do have any additional questions, make sure to contact Indy Car Financing at 855-468-6215.