Having a car can make your uni life far more convenient. The problem is, as a student, finding the money to pay for a car isn’t always easy. A student car loan can help you get access to funds that can help you buy a new or used car.
Before you take out a loan, make sure you look into:
Find out below if you would be eligible for a car loan as a student, and what you should look out for when buying a car on a tight budget.
A car loan is a sum of money that you borrow from a lender in order to finance a new or used vehicle. After borrowing money to cover all or some of the costs of purchasing the car, you will then have to repay the loan over your chosen period. Car loan terms usually range from two to seven years.
On top of your car loan repayments, you will also be charged interest on the loan. Car loans typically have a fixed interest rate meaning the interest figure will not change over the term of your loan.
When taking out a car loan, most lenders will require you to secure your loan with the car you are purchasing. This is referred to as a secured loan. Lenders use this as a type of insurance if you’re unable to repay the loan. If you’re unable to afford the repayments on the loan for whatever reason, your lender has the option to repossess your vehicle. However, this is generally only done as a last resort.
There may be restrictions on what can be used as security on a car loan. Your lender may not offer secured loans for second-hand or older cars. Make sure you check what the lenders’ limit is in terms of car age. Some lenders have a cutoff of 2 years, while others go up to around 10 years. The age of the car is usually calculated at the time of settlement.
Unsecured loans, on the other hand, refer to a particular loan in which you won’t have to attach an asset to secure your loan. These loans are typically for smaller amounts because it’s less risky for the lender. Most car loans are unsecured loans. In some cases, you may be able to secure your loan with the car you’re purchasing.
All car loan lenders will require you to meet certain eligibility criteria. To apply with for car loans with Jacaranda Finance you must:
Keep in mind that other lenders may have additional lending criteria that you should look out for. If you’re unsure whether you’ll be approved, you’re welcome to apply and let us take a look. It can be hard to gauge eligibility over the phone without having a proper look at what you earn and how you spend.
Unfortunately, you will most likely not be eligible for a student car loan with Jacaranda Finance as an international or exchange student in Australia. The majority of lenders in Australia will require their applicants, regardless of whether they’re a student or not, to be either an Australian citizen or Permanent Resident. If you’re a student who’s studying in Australia via a study visa or any other type of visa, then it is highly unlikely that you’ll be eligible for a car loan. However, before applying, it’s always worth discussing your visa status with lenders directly to see if they have any products or options that you could consider.
Here are a few things that you should keep in mind when you’re comparing student car loans:
If you’re a university student, you might have a part-time or casual job, meaning you could have a low income and limited credit history. Because of these factors, it could make taking out a student car loan difficult. However, there are a few ways you could improve your chances. Use the following tips to increase your chances of getting approved for a student car loan:
After finding the right car for you, do some comparisons to find the car loan that best suits your needs. It’s vital to compare and understand all loan options and eligibility criteria.
Jacaranda Finance provides car loans ranging from $5,000 to $35,000 with a repayment period of 2 and 5 years (depending on how much you apply for). We will always give you a fair go when assessing your application. It’s our opinion that your credit history is exactly that – history. We can look past a less than perfect credit score if we see that you’ve been responsible with money recently.
Don’t hesitate, scroll up and apply today. You won’t be charged a processing fee if your application is unsuccessful.
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Jacaranda is 100% online. So, we do not accept applications over-the-phone. However, our friendly team is more than happy to answer any questions you may have.