student car loans are one of the used car loans that are a very popular subject on the internet. It’s followed closely by guaranteed auto loans. The only issue most internet users should be aware of is that both of these car loans are very hard to get and when gotten can be very expensive. Student car loans are by definition not very attractive to most lenders. Why? Most students don’t have a job or a steady income and this flies in the face of what a lender is looking for in being able to predict an ongoing stream of payments in the future.
guaranteed auto loans are very similar in that it’s “guaranteed’ once the lender is satisfied the borrower has a steady job and will get a regular pay check into the foreseeable future. That is what in fact “guarantees” the guaranteed auto loans. If the income is not enough or if the job doesn’t look stable enough, then the lender will require the person to put up a down payment or may require a cosigner. It’s all about being sure that the borrower will have an ongoing income as long as the loan is outstanding.
In both cases, student car loans and guaranteed low rate auto loan, the lender is looking to the car to serve as partial collateral for the loan. They recognize that the car is going to depreciate and actually isn’t worth what’s being paid for it at the time of sale. It’s the “gap” between the true value of the car and the loan that the lender is addressing in looking at the income. A down payment of a cosigner makes this requirement easier to handle. My advice for someone seeking student car loans or guaranteed car loans is too know someone who is credit worthy that you can call on as a cosigner if needed. If you aren’t successful in getting the loan on your own, you can get the cosigner to step up and make the transaction happen. That way you can negotiate hard with the lender but if you don’t succeed, you still have a way to get your car loan.
