Many factors have to be considered before getting yourself a car if you are still a student. Youngsters who are still at school may want a new car for personal use but they may have a lot of difficulties in getting their loan approved. In order to avoid yourself stressed out, it is better to have all the necessary information before applying for your car finance loan.
The first factor to be considered is your credit history. If you have a good credit history and it is registered at your current address, then you are in the right position for your request to be approved. Students with a bad credit history do not really stand a chance of their loan being approved because lenders actually want to be sure that you can pay them back. But this can be tricky as well because not all banks offer this kind of option, so you need to find out which banks actually offer student car loan.
Most commonly students who opt for a used vehicle are more prone to get approval for their student’s loan, so you need to decide whether a used car will be fine by you or if you really need a new car. This does not mean that you cannot buy a new car, but if you really need one and you cannot afford your approval to be rejected, then most probably the best way for you is to get yourself a used car.
For your car finance loan you need to be having at least a part time job, and earning over £600 per month and having proof of your statement. For those who do not have a proper job or do not earn the amount required, basically the best option is to get a guarantor or have the car financed in one of your parents name.
You need to be having at least a 10 percent’ deposit and a full UK driving licence, and you are ready to go. But before taking such a decision, you should consider how much you are ready to spend on your car. Apart from paying back the loan, you will also need capital for your car insurance, fuel and car maintenance.