Frequent question: Should you buy a car as a college student?

Is it bad to buy a car in college?

In addition to not being allowed to use your federal loan to buy a car, it is really a bad idea to buy a car using your student loan. The fact that you only start paying off your student loan after your studies might make this an appealing option as opposed to taking out an auto loan.

How much should I spend on a car as a college student?

In general, the pricier your car and the closer you live to a major city, the higher your TTTF costs. If you’re just looking for a rough estimate, plug in $350 if you’re buying a car that costs less than $5,000, $750 if the car costs under $10,000 and $1,500 if the car costs less than $20,000. Boys, you’ll pay more.

Should a college student buy a new or used car?

Buy a Used Car

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.

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Does the average college student have a car?

In fact, 48% of students have a car on campus, according to a 2016 survey from U.S. News & World Report. And at 14 of the 215 schools surveyed, at least 90% of students have a car.

Can a college student get a car loan with no job?

College students can sometimes have trouble working a full-time job and attending classes – it can be a big workload. But if you don’t have any income at all, you’re not going to be eligible for a car loan. … If you have 1099 income (or self-employment), many auto lenders require two or three years of tax returns.

What kind of car can I afford making 50k?

Rather than looking at monthly transportation costs, Dave recommends buying cars that cost no more than 50% of your annual income. So if you make $50,000 a year, you should not spend more than $25,000 for a car(s).

What car can I afford with my salary?

Whether you’re paying cash or financing, the purchase price of your car should be no more than 35% of your annual income. If you’re financing a car, the total monthly amount you spend on transportation – your car payment, gas, car insurance, and maintenance – should be no more than 10% of your gross monthly income.

Can a college student afford a car?

Can a college student get a car loan without a job? Yes, but not easily. Lenders hesitate to lend to degree-seekers without full-time jobs. However, they can opt for a buy-here-pay-here lot, which come with high interest rates.

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Is it smart to finance a car 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.