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Tips for Securing Your First Car Loan

Purchasing your first car can be a life-changing event, it is a major milestone and one that you should carefully consider. If this is the first time you are applying for an auto loan, chances are you have no credit history. If you are working part-time and studying, there are ways to secure a car loan from a variety of lenders. If you are young, you probably haven’t had time to gain a credit rating, but this shouldn’t stop you.

The Dreaded B Word

Before you rush in and secure a loan, it is important to make a budget. Lenders like nimble offers fast car loans to a variety of clients looking to receive funds for their first vehicle. Prior to getting any money from an online lender, bank, or credit union, you need to get your budget in order. Take a good look at your income and work out how much you can realistically afford to pay each month on your loan.  Ask yourself some of these useful questions:

  • How much do I have in savings?
  • What is a realistic figure?
  • Am I secure enough in my job to successfully make payments?
  • What is the gap between my savings and how much I need for the car?

Just because you can borrow a substantial amount, doesn’t mean you should. So, carefully consider your budget.

Paying for the Car

You’ve found a car that suits your needs, it looks good and isn’t over your budget. If you don’t have anyone behind you willing to cover the expense, you’ll need to take carefully consider your loan options. The only way you’re going to secure a vehicle is by discussing your options with a lending institution. Applying for a car loan using a traditional bank can sometimes be difficult, especially if you are a student or working part-time. If conventional lenders aren’t an option, you can always look at online lenders.

Eligibility

Before you apply for a loan, it makes sense to check if you are actually eligible. In Australia, students can apply for car loans if they are over the age of 18 and they are Australian citizens. This law is the same in most other countries around the world. The only way to find out is to contact the lenders and ask about their requirements. When buying a new car, it is important to take a number of factors into consideration.

Applying for a Loan

There are many ways to apply for a loan, if you are using a digital lender, it can all be conveniently done online. You are trying to prove you are trustworthy, so you’ll have to provide documents such as proof of residence, income, and identification.

If you are having trouble securing a car loan because of your age or credit history, you should try a variety of lending institutions and not just traditional organisations like banks and credit unions. A lot of students tend to use a guarantor or a co-borrower to help them secure a car loan. A joint personal loan is also another option.