The latest vehicles on the market may have advanced tech and features, but if you’re a college student looking to save, it’s best to buy used. Typically, pre-owned vehicles cost less and have lower monthly payments than newer models available.
Should a college student buy a new car?
For students attending college in rural areas or who must work part-time jobs, having their own car is reasonable and often necessary. While getting a really old, super cheap car may seem economical, in the long run, getting a newer car with better fuel efficiency and safety features is a better choice.
Is it bad to have a car payment in college?
Do NOT Use Student Loans to Buy a Car
As a final word of advice, it is generally not advisable to purchase a car with student loans. Not only is it potentially illegal to do so, especially if your student loans are federal, but also it is really bad financially.
What kind of car should a college student buy?
Top Affordable Cars for College Students
- Ford Fiesta.
- Chevrolet Sonic.
- Jeep Wrangler.
- Toyota Yaris.
- Honda Fit.
How much should I spend on a car as a college student?
All told, expert sources such as Consumer Reports and Quicken indicate that total transportation costs—monthly payments, insurance, gas, parking—should be no more than 8%–10% of your budget. That may be well worth it to you if you need your vehicle to work, class, and back home again.
Is it better for a college student to buy or lease a car?
The short-term cost of leasing is always cheaper than buying, by about 30%. This is because your lease payments are usually lower than your loan payments if you have a loan. Also, depreciation of a car is always the most in the first year. In the medium-term, 2-4 years, leasing and buying costs are about the same.
Can you buy a car with fafsa money?
You cannot use student loans to buy a car. … You also can’t pay for the purchase of a car with financial aid funds. In particular, a qualified education loan is used solely to pay for qualified higher education expenses, which are limited to the cost of attendance as determined by the college or university.
Is it smart to have a car payment in college?
That’s why car loans for students are the answer for many college-goers, even if they have no credit history to speak of. … And if approved, not only can you buy the wheels to make college life so much easier, you’ll be able to spread the cost of your purchase over time, too.
Is it smart to get a car loan in college?
It’s possible to get a car loan as a student if you have a good credit history and reliable income. If not, you may have trouble getting approved. Fortunately, there are steps you can take — such as adding a co-signer and saving for a down payment — that can help improve your chances of qualifying.
What type of car should a college student get?
Top Cars for College Students
|2019 Vehicle model IIHS safety ratings||Safety features|
|Hyundai Elantra||Hyundai Elantra safety features|
|Mazda CX-5||Mazda CX-5 safety features|
|Subaru Impreza||Subaru Impreza safety features|
|Toyota Camry||Toyota Camry safety features|
What is a good price for a car for a college student?
Generally speaking, new compact and subcompact cars with minimal add-on features cost anywhere from $10,000 to $25,000 (MSRP). Midsize cars typically cost anywhere from $20,000 to $35,000, and sometimes more.
How much should a college student spend on a car?
But to answer your question, $2500-$5000 is reasonable for a student needing a vehicle to get around town. In reality, you should spend as little as you can to get a reliable-ish vehicle that meets your needs.
What is a reasonable car payment?
Many financial experts recommend keeping total car costs below 15% to 20% of your take-home pay. … For example, if your monthly paycheck is $3,000, your car payment would be about $300 and you’d plan on spending another $150 on automotive expenses.
Can I get approved for a 30000 car loan?
In general, though, the higher your credit score, the better your chances of scoring a low interest rate and less restrictive loan terms. For example, if you have a good credit score, you may be able to finance $30,000 for a new vehicle with a 3.99% APR over 60 months.
Can a college student with no credit get a car loan?
Students often lack credit, the most important asset when getting a loan. That’s why a cosigner is needed to get a student auto loan—no credit history is required, except by the cosigner. … Lenders usually require a cosigner if a student has no credit, or bad credit, because it makes lending the money less of a risk.