Student: how to buy your first car?

Taking into account public transport, the distance, the frequency of your trips, you decide to buy a car to facilitate your study trips. Whether desired or sudden, buying a car is quite expensive because it includes not only the purchase price, but also insurance, taxes and operating costs.

In the absence of sufficient savings, you can always opt for an auto loan. But even if you have the required amounts, a consumer loan can be a more economical option. In any case, to get a cheap loan at the right rate, you must meet the conditions required by your creditor. In addition, the type of car to take (new or old vehicle, diesel or gasoline) is important to define the amount of the credit.

The conditions for a first car loan

Students wishing to obtain an auto loan must prove their student status and be of legal age. This is also the case for loan insurance, a motorcycle / scooter loan or others.

Loan formalities are easy, but getting a car loan as a student is complicated if not impossible if you don't have a regular income. Lenders only accept final contracts. Temporary student jobs are not considered. The borrower must, in the absence of fixed income, resort to the surety of a person or a third entity able to provide a guarantee for his commitments.

However, due to the stiff competition in the credit market, many credit institutions are on the lookout for student clients. They are ready to invest in a future economic player that they hope to keep as a client when he has significant income.

The documents to provide to obtain the student car loan

To sign the first auto loan contract, one must provide an identity document. The guarantors must bring their last three payslips as well as the bank statements attesting to the payments. The last tax return may be an alternative.

If the purchase concerns a new vehicle, an order form is requested. In the event of the acquisition of a used car, the lender must provide a document attesting to the purchase, the vehicle registration document and a registration certificate. When the credit contracted is a personal car loan, the borrower is released from these latter conditions.

How much to borrow?

Credit organizations can get you from $ 1000 over one to five years. To have a first car loan at the right rate, compare the different offers available online according to the conditions of granting and the annual percentage rate of charge (APR). If you have a personal contribution or savings, you will have more credibility to negotiate a better loan.

Which car to choose for a first purchase?

The choice of the first automobile must be made according to its price and its future use.

Gasoline cars are more expensive to buy than diesels, but they consume less fuel. Gasoline is preferred for short distances.

New cars cost less in insurance and overhaul, but their purchase price remains high. In lack of sufficient resources, opt for a used model. A first-hand used automobile can be a good choice if it has broad insurance coverage and low mileage. Check the vehicle papers to find out.

Mileage is a critical factor in assessing the condition of a used car. For a gasoline car, it should not exceed 120,000 km. A diesel must have a maximum of 150,000 km on its odometer. Beyond these figures there is a risk of an increase in the cost of repairs.

Buying a first car often goes for a student with a car loan. Even if you will be asked for solid guarantees to guarantee your credit, be aware that there are many lenders who want to have you as a client. So let the competition play!

en