How do car loans work - Knowledge Base: Car Loans

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How do car loans work?

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September 23, 2008 - I'm a junior in college and I use my dad's car to get to and from school during breaks or holidays. I'm paying for school through students loans, so I will be in debt after school. So I was wondering how car loans work because I need a something big like a jeep or something, and I'm wondering if there is a such thing such as a student car loan. Something I can pay back after I graduate from college. I hope that don't sound dumb but I don't know anything about car loans. responding to j s, being a junior in college and not knowing about car loans doesn't means I'm not ready for the real world. You might of had many people in your life while you were young to help you understand a lot things such as car loans, unfortunately I don't have that in my life. So I must learn somewhere in learn, but thanks for the info. God Bless

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Sorry, no such luck. As a matter of fact, student loans don't even count as real credit when you apply for a car loan. You will probably need a co-signer or a large sum of money down.
No, sorry. There is no such thing on a car loan. They do offer students special interest rates to make payments more affordable. But that is about all. Every once in a while GM or Ford etc. will do specials tlike no interest or payments for one year but that also is very rare.
Set your sights on that Jeep once you get that job! Earning is a privilege! Self-satisfaction. Motorcycles are easy on the gas and maintenance. Get a double seater for your dates.
If you don't have a job or bunch of money to put down, you can't get a loan for a car. Your best bet is to scrape together as much money as possible and buy a old used car(a beater) to drive around, till you start earning enough to afford something nice. Your already going to be buried in debt, no need to make it worse by buying a new car.
Pay after you graduate? Yeah... don't you wish!
I have never heard of anything like that. Buying a car, you don't have the option to pay after you graduate. Some dealerships may have the option to begin delayed payments for a few months, but thats is about it. Your principal (price of the car) is charged interest over the term of the loan of a car. So your payment is part for the car, and part for the interets of buying the car. And if you miss one payment, the auto dealership (leaglly) has the right to come get the car and you lose all that you paid, plus the car. Most don't do this, and allow for a slow pay senario. But if you buy a car, besure you are on time. Honestly, being a junior in college, you should know this stuff. When I was a junior in college I had my own business. Soon your college days will be over, and it doesn't sound like your ready for the real world.
Nowadays, almost anyone can qualify for a car loan. You may be subject to higher interest rates, but its really easy to get a loan. But, the main thing that you need is income. If you had a part-time job, you could probably get one.
A "student car loan" doesn't make sense-- car loans are backed in part by the value of the car being purchased. This is why typically the longest car loan you see is 60 months (sometimes 72 and even 84 months, but those are usually just to entice the financially undereducated into signing a loan offering a low payment, ie $200/mo for 84 months for an $11,000 car, not realizing that they will be spending $16,800 for it.) A student car loan is a risk for lenders, as the car will have a much lower value by the time your payments are due, and therefore if you default on the loan it'll be harder for them to get their money out of it. A properly used student loan (to pay for books, fees, and tuition) is an investment. Going into excessive debt, on the other hand, is a bad thing. Don't buy your first new or nearly-new car while you are still in school.

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