It is not necessary that you need to be an employee or self-employed to buy a car. Many students look forward to purchasing a car to make the commute from home to university and vice-versa easier and more comfortable.
Riding public transport can be more expensive than owning your vehicle. It is challenging when you have to stay back at your university to do some experiments, research after tuition hours and when you have to go to your part-time job after classes.
It can be stressful a lot to travel by public transport depending on where you live, study and work. You can make your travel comfortable owning a car.
Well, if you are looking to buy a car, you cannot use student loans to finance it. This money mainly aims at meeting your tuition fees and other education-related expenses, and you must have a UK driving licence.
However, there are other lots of factors you need to be careful about to get an affordable car deal.
Look over your credit report
Note that the first thing a lender will take into account to decide on signing off on your application is your credit score. If you do not have a credit rating or have a bad credit score, you will highly likely be turned down.
A few lenders may approve your application, but they will charge high-interest rates. This is why it is suggested that you should add one of your parents to your application who has an impressive credit rating. This will not only improve the chances of being accepted, but you will get a deal with lower interest rates.
Since car finance for bad credit in Ireland is available, most of the people do not bother to build credit rating. Note that if you have no credit history at all, you will be considered a subprime borrower. This is why it is recommended to build a credit history before financing a car.
Buy something with a credit card and pay it within the grace period or you can take out a small loan to be paid in fixed monthly instalments. If you successfully pay off the debt on time, you will have a good credit score.
Do not ignore budgeting
Buying a car is not a joke. Even though you are earning a fair amount through your part-time job, you will have to take stock of all of your expenses. If you sign the agreement, you will have to pay down a small portion of the debt as an instalment.
This will be an added expense every month until you settle all of your dues. This is why it is crucial to figure out if you will be able to pay off along with other recurring expenses. Here comes the role of budgeting. Calculate your total costs and leave some room in case variable expenses go up and then deduct the estimated figure from your total income to know how much you will be left with.
Do not forget to set aside some money for an emergency cushion because that will help you tide over when an unexpected expenditure pops up. Online calculators can help you get an estimated idea of how much it will set you back. Note that this is just estimation. The real cost will likely be higher than it. If you find that your budget does not allow you to meet car repayments, you should immediately put off the idea of buying a car.
Have alternatives with you
You can finance your car with several options, and the most popular one are hire purchase and personal contract purchase. Just because other people are choosing one of these methods does not mean you will follow them.
Everyone has different financial circumstances, so make sure that you choose the option that fits your budget. If you have a large deposit, you can prefer to take out personal loans. One of the significant benefits of these loans is you do not have to put your car as security. Before you fill-up, the application, make sure that you have considered all alternatives and choosing the one that fits your budget.
You can finance a car easily even if you are a student and you will have all financing options like any other borrowers. If you have the UK driving licence and good income source, you can easily qualify for an auto loan.