Due to the fact that you have limited credit exposure, and probably have a low credit score, and due to the fact that many students have student loan debt weighing their credit score down even lower, you are likely going to need a co signer, proof of income and employment, and a means to show you can make the monthly payments on the loan. So, as long as you have a parent who will co sign, or someone who is willing to co sign with a higher than average credit score, there are many lenders who would be more than willing to loan students the money to buy a new car.

Another factor to consider when applying is whether you have to show proof of income. If you do work, and have a co signer, this is likely the best way to get the approval. If, on the other hand, you do not have a steady source of income, and are taking out student loans, your co signer is going to have to have an exceptionally high credit score and rating in order for you to get the approval you seek out when buying. So, keeping this in mind is also something to consider.

Lastly, if you do not have a co signer, you will find there are various lenders who do approve those with no or bad credit for loans. Although you are going to pay a higher interest rate on the loan, it is possible for a borrower to get the loan, and to get the funds they are in need of when trying to purchase a new car from a dealership, even if they are a student, and do not have established credit records.

Generally the answer is simple, your bank or credit union. Banks and Credit Unions are lending direct to you so there is no middle man where as if you were to use a car finance company you will often pay more (for the same money the bank is giving you). Car Finance brokers make money from adding on a few percent, on average you may pay an extra $1,000 when all is said and done just by using a car finance broker. With a car dealer, this extra amount can be even greater, but car dealers have a great advantage, often you may find yourself at the dealership, you have fallen in love with your next new car and a dealer can arrange finance for you right there, on the spot and you can drive your new car home. You may not mind paying an extra few dollars per week for the privilege.

It’s important to shop car finance brokers and banks around. Banks and Credit Unions would account for around 45% of all car finance loans written, car dealers around 30% and car finance brokers around 25%.

Shop around to give you the confidence that you know you are getting the best car finance interest rate.

Balance transfer credit cards can cut your repayments down to nothing. A credit card comparison site can be a great way to review your options. Car loans are secured against your car.