The shift to the digital platform of studies has changed the entire landscape of education for students. The world of online classes has reduced mobility and the need for transportation for students. However, schools and colleges may soon re-open due to the introduction of the coronavirus vaccine. The new normal of a post-pandemic world may seem closer than we think. Therefore, reconsider purchasing a car for your college kid as it has more benefits than one.
College Students and Car Buying Decision: Three Reasons to Buy a Car
1. Build Your Credit Score from Scratch
A credit score can make or break your auto financing deal. The more attention you pay to your credit score, the better it will become in the future. Car buying can help you with the opportunity to build your credit score from scratch. You can create a consistently good credit report with regular payments towards your auto loan. Strong credit history is the foundation of a robust financial future. Therefore, make sure to grab that opportunity to positively impact your credit score as you purchase your car for college.
2. Personal Vehicle over Public Transportation
The government has started the vaccination drive for Novel Coronavirus. However, the existence of COVID-19 is not a thing of the past. You can eliminate the risk of using public transportation with the help of a personal vehicle. Using subways, sharing cabs, and taking buses are things that you should avoid. The primary reason to purchase a car is to stay away from the general public and maintain social distance. Buying a vehicle is also a convenient way to travel and enjoy road trips, errands, and work.
3. Improve your Creditworthiness
The debt-to-income ratio displays the debt you owe against the income that you earn. As a student, you may not have a job. And, having a car loan against no income can increase your debt-to-income ratio. However, a job and steady income can help you to manage the debt-to-income/DTI ratio efficiently. Many colleges offer work-study programs that can be helpful to you. Also, a co-signer can positively impact your auto loan and your DTI ratio. So, do not lose sleep over your auto loan but work on improving creditworthiness through a steady income source.
Students! Say Yes to Car Buying.
The year of 2020 has left everyone with a feeling of uncertainty. The education of students changed due to the shift to online classes. However, the re-opening of schools and colleges will happen sooner than expected. Therefore, say yes to car buying for the college student in your family.
Do you want to buy a car? Apply for student auto loans to enjoy affordable monthly payments on your new car. EZ Auto Finance offers first car loans to help young car buyers make the purchase. Get approved with/without a cosigner to support your application form.
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