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Can You Get a Car Loan Straight Out of College?

Yes, you can get a car loan right out of college if you have some positive credit, a work history, and a down payment. Most of the major automakers offer an incentive program of some sort for recent college grads that usually include looser lending requirements. In addition to these programs there are many online auto financing options available when you are fresh out of school.

Car Loan Recommendations for Recent Graduates

Before you go shopping for any type of car after graduation, you need to keep your down payment in your mind. You should have at least twenty percent of the vehicle’s purchase price down. This will improve your chances of being approved for a loan and lower your monthly payments. That means that you will have to be reasonable about the car you buy. A used car, something around five years old, with good fuel economy and very few, if any, recall notices will work best. Often these are small, base model vehicles. Kia and Hyundai offer a variety of models that fit this description, but, if you shop around, you can find many options from Ford, Chevrolet, Honda, and Toyota, as well.

Also, when deciding how much of a payment you can afford, be sure to consider all of the other financial aspects of owning a car. Fuel, maintenance, repairs, and insurance premiums can wreck a budget if not properly anticipated. No one wants to own a car that they cannot afford to drive.

About the Author

The author has many years of experience in automotive finance and insurance. However, each consumer's situation is unique. It is best to contact a finance specialist for further assistance.
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