If you are a university, college, or tech school student, you may need a car but don’t have the money to buy one from a private seller. If so, financing a car may be your only real option. That means getting a car loan. You can apply to a wide range of lending institutions, from your local bank, to a credit union can join, to dealers themselves.
When it comes to auto loans for students, it’s essential not to overspend. Given the debt from student loans, which now exceeds credit card debt in the US, you don’t want to dig yourself into a deeper financial hole. For this reason, it’s good to get a parent or other trusted relative to cosign your loan. That way, you can qualify for significantly lower interest rates, especially if your cosigner has excellent credit. Lower interest rates translate to less money you have to pay over the principal amount, and that means less debt in the long run.