How To Buying A Car While Still In College?

Owning a car in college can be a great asset, allowing for increased independence and convenience. However, as a student, it can be challenging to afford the cost of a car and the expenses that come with it. 

This year, the average price you have to pay for a family car in the US is $48,978. Since the last 3 years, the car rices have been at a record high. In the previous few months of the year, the US sees a month-long sale of cars. After that, the car prices rise exceptionally.  

Wait, that’s not the only problem you will face. As a student, I’d expect your credit account hasn’t opened yet unless there is a student loan against your name.  

Here Are Five Prime Steps To Buying A Car While Still In College

In this article, we will explore how a college student can own a car while still being financially responsible and making the most of their limited budget. Whether you’re commuting to class or hitting the road for a weekend getaway, we’ll show you how to make car ownership a reality while still being a successful student.

1. Take Out a Car Loan

Taking a car loan can be a great way to finance the purchase of a vehicle, but it’s important to understand the process and consider all factors before applying.

Be sure to compare interest rates, loan terms, and any additional fees or charges before making a decision. We suggest you click here and browse reliable online resources which can guide you as you contemplate a car loan, to finance your first car.

Carefully read the terms and conditions of the loan and make sure you understand all the fees, charges, and other costs before signing the loan agreement. There are more than 500 car insurance companies in the USA, with the average premium for car insurance hovering at $1529, as per Zebra.com’s latest report. There are plenty of options for providers of car insurance.

2. Budgeting

Budgeting in college is essential to save money for a car loan. Create a budget and stick to it. Keep track of all your expenses, including tuition, housing, food, and entertainment.

You can do this using trending budgeting apps that help you plan your expenses, like Pocketguard, Mint, and others, as recommended by Forbes. The list has been curated after taking into account 18 different factors, with the app store rating having the highest weightage of 35%.

Prioritize your expenses by determining what is essential and what can be cut back. For example, you may need to cut back on eating out or entertainment to save money for a car loan.

By budgeting and being mindful of expenses, you can save money while in college and put it towards a car loan. Remember to prioritize expenses, look for ways to earn extra money, and avoid unnecessary expenses.

3. Monthly Saving Plan

Saving money while in college can be challenging, but it is possible to put away money for a car with a bit of planning and discipline. Establish a savings goal of how much you plan to pay as car loan installments and start saving the required amount every month.

Many businesses offer student discounts and take advantage of them to save money. Shop for deals or buy used items.

Credit card debt can add up quickly and make it harder to save money for a car. Avoid using credit cards unless you can pay off the balance in full each month. Set up an automatic saving plan to transfer a set amount of money from your checking account to a savings account each month.

4. Have a Part-time Job

Working part-time jobs or internships while in college can be a great way to earn extra money and save for a car loan.

By setting a savings goal, creating a budget, and being mindful of expenses, you can save money while in college and finance a car. Remember to prioritize expenses, look for ways to earn extra money, and avoid unnecessary expenses.

Which car is right for me?  

You don’t need to fulfill your dreams of buying a luxury car now. Think about the car’s purpose and how much you can afford. Also, remember, the first car might not be your dream car. So, here is a list of things you must consider when comparing models: 

1. If you use the car daily, choose a model with high fuel efficiency and low mileage. But you won’t need to consider these factors if you drive occasionally.  

2. Buying a car with proper safety features is always better if you drive on rugged terrains.  

3. Before you buy, check the cost of that model’s spare parts and repairs online.  

4. Lastly, check what friends and family say about your choice. Most importantly, listen to their negative reviews when you evaluate your options.  

Should I Buy New or Used Models? 

Decided which model you want to buy? Now, it’s time to determine whether you want a new or used model. Firstly, new cars are expensive. But you may get used cars at a much lower price.  

Search local sources and the internet for used cars that haven’t run more than 5000 miles. Meanwhile, it is better not to buy cars over 5 years old.  

Secondly, check out the mileage and condition of the car. The higher the mileage and wear of the vehicle, the higher the chance that it will need repairs. And repairs mean extra costs.  

So, I would suggest buying a used car in good condition. You can hire a mechanic to test the car’s condition before buying it. That way, you may enjoy your car but won’t have to pay the price of a new model.  

Conclusion 

You need careful planning for buying a car. But I feel buying a luxury or new car while in college is way too ambitious.  

But do get one if it solves the purpose of transit. If not, build your future and buy the car of your dreams later. 

Read Also:

• 5 Tips for First-Time Car Buyers
• How to Buy Car Insurance: A Quick Guide
• Seven Ways Businesses Can Save Time And Money On Shipments