Having a car of your own while you are still a student isn’t something that previous generations could aspire to, unless they had exceedingly rich parents, of course.
While the rich parent factor is as prevalent today as it was previously, it is now possible for students to enjoy the independence of driving their own car, even if they do not necessarily have millionaire parents!
Before you get that student car loan though, you need to make sure that you don’t end up making any of the common mistakes which students often make.
You Need to Start Earning on Your Free Time
If you want to be able to afford a car’s instalments, general maintenance and repairs, you need to hold a job on the side to be able to do so.
This is particularly hard when you are in college. Sure, side jobs are going to be there, but unless you have a steady income, both securing a loan and paying the instalments on time can become a daunting responsibility.
Instead of changing jobs frequently like students usually do, find a good one and stick to that job for as long as you are still in university.
Save Up for the Down Payment
The younger you get started, the better really, but as long as you hold a side job, saving up for a decent down payment on that car loan should not be too hard.
If you can pay anything between 5% – 10% of the total price, there are multiple advantages to be had here, which can be listed as follows.
- The rate of interest is reduced
- The total amount of extra money you need to pay in interest to the lender is also reduced
- The instalments become much more manageable
- Lenders prefer students who are capable of making a good down payment
Go for a Lease Instead of Buying
It is quite likely that the car you choose as a student won’t exactly be of premium variety. Once you get out of college and find a job, the same car might already be too old or it could be completely unsuited for the post you will be taking up in your new office.
This is why leasing cars is a much better option for students than buying them because they can simply change over to a better model once they get a job, without ever having to go through the hoops of selling it at a loss.
Vantage Leasing has car leasing special offers going on at their site right now and if you have a decent side income, dare we say that even some of the mid- to high-end models like the Skoda Octavia or the Mazda 6 might not be entirely out of the question!
As for an economic choice, the Smart Forfour Hatch Passion or the Vauxhall Corsa Hatch will do just fine when you are a student looking to get your first car. The special offers at Vantage Leasing make leasing any of these cheaper models an even more lucrative option for students than it generally is, so do check them out first before making your decision.
If you are having trouble securing a loan as a student, you will need a co-signer with a steady income and a decent credit score who can take responsibility for the loan on your behalf. Leases, on the other hand, do not usually have such requirements!