As we’ve previously discussed, having a job will make lenders much more likely to extend you credit. Simply put, it shows them you can afford to pay off your loan. Typically they look for a duration of employment of 6 months or more.
Car Loans for Students without a Job
Due to all kinds of factors, from GPA priorities to a desire to enjoy the college experience, about 50% of college students are not employed (according to 2004 Census Data). So how can you get a car loan if you don’t have a job? The answer is that you’ll almost surely need to find someone to cosign your loan — usually a parent — and of course you’ll need some kind of income to make your payments.
Basically, if you can’t show steady income from independent wealth, inheritance, or investments, your auto lender will see you as too high-risk a borrower. If, on the other hand, a parent or other creditable person is willing to cosign for you and give you the money to make your financing payments month in and month out, you may well be able to qualify for car loans for students without a job.
Be wary of any dealer or finance company who tells you that you don’t need either a job or a cosigner — a deal like that sounds too good to be true, and probably is.
