Writing assignments, completing projects, managing a job and between all this using the highly unreliable public transport leaves little time for you. In today's student's life, it is extremely essential to get to places on time and so necessary to own car.

Buying a car is every student's dream. But making it a reality is fairly easy if you buy a car with a loan.

Now in the times of credit crunch, it is difficult for an individual with absolutely no credit score (often called a zero credit score) to get a car loan. Lenders check your credit history and score and then decide whether you are fit for lending money. But when it comes to students, it becomes very difficult to obtain loans as they absolutely have no credit score or any financial history.

The best way of obtaining auto loans for students is by asking someone to co-sign your loan. In this case, your liability is shared by the co-signer. So the lender is assured that even if you are not able to repay the loan, then the co-signer will pay for it.

But this does not necessarily mean that you get license to miss your payment, a co-signer will only sign the loan when you assure of him of timely payments. In case you miss out on any payment due to unavoidable circumstances, then it is your duty to inform your co-signer at the earliest. You can ask anyone from your family to sign your loan; in case you have a family with bad credit history then you also have an option of going for No Co-Signer Loans.

When it comes to obtaining auto loans, it is essential that you decide before hand the kind of car you want. You can either go for new car or older/used cars. Both the types have their positives and negatives.

If you purchase a new car then its price is high but as its resale value is higher, you can obtain loan at a lesser interest rate. But remember that as a student you won't be able to dedicate too much to care for your new car. So it is generally seen that individuals in their student years buy used cars so that they do not have to worry about any damage.

No matter what type of car you decide to buy, don't forget to consider future expenses also. Knowing which car you are going to purchase will be helpful for you to understand how much loan you will require. When you know what amount of loan you will require then you can also avail a pre-approved loan. If you are able to get hold of it, then you can negotiate in a better way with the dealer.

If you are able to make a large down payment of 20 % or more, then it will be helpful to you as the lender will now have to pay lesser amount as loan. This will enable you to lessen your interest rates.

As a student, buying your own car is the first step towards assuming responsibility and when you acquire a loan for the first time it is like forming your own credit worthiness. It is essential that you do it properly. The tips will surely help you in procuring finance at a lower rate and making your dream come true.

Wishing you luck for purchasing your dream car.

Hope you find the best!