Things You Need to Consider Before Buying Your First Car
The first big choice you'll make is whether to buy a used or a new car. Of course, a used car may be easier on your budget at first. It may also require additional repairs and maintenance later.
A new car will have a warranty for mechanical failure, which saves you from having to handle large repair bills during your first few years of ownership. The downside to driving a new car is that you'll pay the high rate of depreciation during those first few years, as well.
One nice compromise is a used car that's certified by the manufacturer. These vehicles go through a thorough inspection and have a warranty that covers major repairs. An auto specialist makes sure that everything on the car is in working order before the manufacturer will certify it. You can find out more about this option at any local dealership that sells new vehicles.
When you think about how much money you can spend on a car payment each month, consider other expenses as well. If you commute to school, you'll pay more for gasoline and require more frequent oil changes. Research the estimated gas mileage of the type of vehicle you want so you can better understand the cost of driving.
Before you make your purchase, check into car insurance rates. Students living in a community far from home are often surprised to find out that car insurance rates vary widely from one area of the country to the next. Insurance companies that specialize in working with students may offer discounts for good grades or for paying your entire premium up front as opposed to making monthly payments. Be sure to compare rates before choosing a car insurance company.
Use an online auto loan calculator to find out how various loan terms and interest rates affect your monthly payment. For example, if you know you can spend $300 each month on a car payment, and the vehicle you want is $12,500, you'll need to find financing with an interest rate of 6.5% or lower for 48 months.
While many car dealerships offer in-house financing, even as a college student you have other options. Companies that specialize in auto financing for college students may offer better terms and lower interest rates.
You need an affordable loan designed to meet the specialized needs of college students. Boro looks beyond your credit history so you can get the best possible interest rate on your car loan. Unlike other lenders, Boro understands that college students may not always have a credit history. They also may not have a co-signer available to help them get a loan.
No matter where you get your auto financing, you deserve flexible terms and great rates. Shopping around won't hurt your credit score since credit inquiries about loans for major purchases like a mortgage or auto financing made within a 30-day window are grouped together to minimize damage to your FICO score.
You can get approved online and have your funds within 24 hours with many online lenders, but Boro is the lender that works with college students to find the best possible terms.
The financing you choose for your first car should work in your favor. As a student, you'll benefit from flexible terms and lower fees. Consider working with a company that understands your needs as well as your unique situation.