Instant approval: It is a known fact that students do not have good credit history in fact they have no credit built up. They cannot afford extravagant amount as upfront payment and they have to buy their car with a limited amount in hand. Lenders are aware of this fact and are lenient while offering these loans. Student auto financing with zero credit history are absolutely possible in today's scenario. Thanks to the recession and lenders are aggressively looking out to improve their business sales. Lenders offer instant approval on all student auto loans provided if they meet the minimum eligibility criteria defined by the lenders.
Low interest rates: There is yet another advantage in getting student car loans for no credit history. The rate of interest is relatively kept low and is affordable to most of the students. This reduces the monthly payments for the college students. Lenders might give additional benefits and flexibility to the student loans. Giving more flexibility helps them to gain more business.
Lower Down Payments: Sizeable down payment becomes a huge burden for the students. Lenders will be happy to see the parents supporting the loan process as it will give better credibility on students. If the loan is obtained with collateral security, there are more numbers of chances to reduce the down payment to a greater extent. However, it is highly recommended for the students to arrange for the initial funds which will differ from 15% to 20% of the total vehicle cost. If not, this amount will be added in the loan amount and the student might end up paying a huge amount as interest and will complicate the process.
Co-signer is not obligatory: A lender will usually demand a co-signer if the down payment is very less. However, the lenders are lenient for students and try to avoid this circumstance. This rule depends on the lenders and not all might compromise with this factor.
Online auto financing: Online auto financing are a better option for students. This will help them to obtain quotes from different venders and compare their features. As the competition is very high in the online market, they offer loans at reduced interest prices.
The above said factors will help the students to obtain no money down auto loans and fulfill their dream.