Car loans for college students with bad credit

Car loans for students: fast approval

Even students don’t want to do without a car to be mobile. As a rule, students do not take a new car and are very satisfied with a used one. Nevertheless, the vehicle must be financed so that a student car loan with fast approval times can be taken out.

Students have a low income, which is not attachable. In addition to German state funding, many have a part-time job to be able to pay the most necessary costs. Financing for a car is often not possible with the money. In most cases, banks require a regular income when lending, which must be sufficient as collateral. Since students cannot provide this security, others must be presented to the bank in order for a student car loan to be granted.

Often there is no attachable life insurance, so the only solution is a guarantee. If the student has a guarantor, he is also granted a student car loan. The guarantor enters the contract as the second borrower so that he is jointly responsible for ensuring that the installments are paid on time each month. Parents or grandparents who have a fixed income can step in as guarantors.

Car loan for students from the car bank

If you cannot guarantee a student as a student, you should try a car bank that works directly with a dealer. The student should ideally have a down payment of around 30 percent for a used vehicle so that a loan is granted to students at the car bank. The car bank sees the down payment as a security. In addition, the vehicle registration document remains with the car bank until the student car loan has been paid in full.

So the bank takes no risk if the installments of the loan are no longer paid and the vehicle then remains in the possession of the bank. The rates should not be chosen too high, because a car itself costs a lot of money. In addition to the fuel costs, the student may also incur repair costs. In addition, the comprehensive and liability insurance for the vehicle must be paid. If you include these costs and still have money to pay for a car loan for students, you can conclude a contract without hesitation.

In order not to make the cost of the loan too high, the student should visit different car dealerships and obtain information there. With this, he can compare the car banks with each other and thus finds the best offer, which turns out to be cheap and good. The loan amount should be kept as low as possible so that the student does not become excessively indebted at a young age.

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