Part-Time Employment Can Be Acceptable For Student Auto Loans
Some financial institutions offer car loans for college students who hold part-time jobs.
These organizations consider the student’s limitations when they review the student’s application. For example, a full-time student cannot be expected to work full-time hours. Therefore, the student’s income is likely based on part-time and temporary employment, but being a part-time employee does not disqualify the student from getting student car loans.
The key factor in qualifying for student car loans is having some job income on your application that supplies at least $1,500.00 per month. Auto loan lenders need to see a steady income from a reputable source such as part-time or full-time employment income.
Many college students that have never financed a car have an advantage over others who have financed a car with bad credit even tho their credit is subprime.
This is because credit bureaus have started taking past auto loan history into account and look more favorably on those who have never had a car loan compared to loans for college students with bad credit who have had bad car loan issues in the past.
Students May Qualify For Lower Interest Rates
Banks and auto finance companies that offer a specialized student auto loan for students, generally provide a break on the interest rates for students.
For example, a bank may grant a 0.5 percent interest rate decrease for as long as the student attends classes. If the student is also a customer of the bank, he may receive more rate discounts.
Extended Loan Terms For Student Auto Loans
Banks that offer specialized car loans for students may also extend the terms of the loan for lower payments.
For example, the financial institution may provide the college student auto loans with an extra six months to one year beyond the standard terms of the student car loan to lower payments.
Some Student Programs Reduce Fees
Cars for college students programs may waive origination and transaction fees on auto loans for college students, as well. To find the best car loans, research your bank and the options they offer for student auto loans. Note that many car finance lenders that offer student auto loans set a minimum amount for the car purchase amount. For instance, the total you borrow for your loan must be for $5,000 or more. Check with your financial institutions to find out if they offer such a program for students.
Some Auto Manufacturers Offer Cash Incentives
Auto manufacturers often provide financing options for auto loans for students with bad credit.
For example, the Ford College Purchase Program 1 offers students a $500 incentive, along with several financing options for the purchase of a Ford or Lincoln. Research the various auto manufacturers and explore the financing options offered to students.
To know the full benefits of factory incentives and rebates see our advice and the tools we provide in our new car buying guide. You will learn how to get the best deal on a new car, and you’ll be able to save yourself and your family a good bit of money on the car models you like.