When you’re a student, and you’ve just got your driver’s license, you only dream of one thing: having your own car! This is essential not only to go to the university, but also to his job, or just for the many outings that we make between friends at that age…
But a difficulty, and not least, remains: how to afford the car of his dreams when you are still a student and you have no income? There are however solutions according to your personal situation… here are some of them.
The financial contribution of the parents
The majority of students are fortunate to have the support of their parents when they are studying. In addition to the moral support that is very important during these crucial years, many receive a significant enough financial contribution that allows them to invest in a car (new or used).
Sometimes it is simply a “gift” from parents, others offer their children to repay when they can, usually at the beginning of their working lives (a very advantageous Zero Rate Loan). in a way…).
But if some students have the opportunity to get more or less financial support from their parents, this is unfortunately not the case for everyone! They must then turn to another solution: auto credit.
The student auto loan
Auto credit itself does not exist for students, because the conditions for obtaining such a loan are very strict and do not adapt at all to the particular status of the student. In fact, a car loan requires a stable job, regular income, an irreproachable banking situation, an ability to save, and so on.
What the majority of students do not have. But banks and credit organizations want to offer them many other very advantageous loans, because the young people who start in life are future economic actors and thus potential potential customers : the professional, social and family perspectives of a student who will become a future employee, buyer and father, please the banks!
They will therefore be much less reluctant to lend money to a student than to an individual whose professional and financial situation is completely chaotic for example.
On the other hand, the conditions of these student loans are very specific. First of all, the young person must prove his student status (thanks to the student card or a registration certificate). Then, the age is very important : it is absolutely necessary to be major (since the application for credit is made in the name of the student), and to be under 30 years old (25 or 28 for some lending institutions).
The third essential condition is the mandatory presence of a guarantor : usually the parents if they are solvent, but it may very well be another person if the latter agrees and is also solvent. It should be noted that if the student does not find any guarantor for his loan application, the State may, in certain cases, offer this guarantee. Finally, students and guarantors will have a very specific list of documents to provide, such as identification, account statements, family booklet, parents’ pay slips, etc.
Once all these conditions are met, the student loan application can be made. It will then be an unallocated credit (it can be used to finance the purchase of a car or anything else such as the payment of tuition fees for example), and in some banks, it is without a limited amount. (the average being 45 000 € allowed).
On the other hand, the duration of the credit should not exceed 12 years (9 or 10 years in some credit organizations). The rate is very often more attractive than for other types of loan (from 0.90% to 4%), and in most cases, the application fee is offered. Everything is done so that the student feels confident and can buy the car of his dreams in the best conditions!