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Buy a car w student loan?

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Old 01-21-2010, 12:43 PM
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Buy a car w student loan?

I'm in college and trying to buy a new truck. My current vehicle is pretty beat and I've been looking at getting a newer rig for a few years now. I have a little saved but would need to a loan for most of it. I can afford to make payments but was wondering if it's possible to take out a student loan(through a private company/bank, not government) for say 5-10k and use that to buy a truck. That way there's no interest and if I get in a bind I don't need to make payments every months while in school.
 
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Old 01-21-2010, 12:57 PM
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Student loans are for paying for school, car loans are for paying for cars. Good luck trying to switch them, my guess is that you won't get very far.
 
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Old 01-21-2010, 01:09 PM
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You would be foolish to try and use a student loan to pay for a vehicle. Why are you trying to use a student loan as opposed to a traditional car loan? If you cannot afford to make payments on the vehicle year round then you are financing too much.
 
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Old 01-21-2010, 01:21 PM
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Even Sallie Mae charges interest for student loans. I'm sure the interest from a private bank would be even higher. You are going to pay a high interest rate for an unsecured loan. No collateral, no lein on the vehicle you want to buy. Best bet is an auto loan.
 
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Old 01-21-2010, 01:30 PM
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I can afford to make payments. I just thought if I took out a student loan and used that I could pay it back before I got out of school, meaning I'd end up paying no interest.
Just trying to check out all my options before I pull the trigger.
 
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Old 01-21-2010, 09:31 PM
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I think it would work, I knew lots of kids who "lived" on their student loans while in college
 
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Old 01-22-2010, 05:57 AM
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This is just a WAG, but, I think that the lender would get pretty upset (and may call for immediate repayment) if you ask for money for one purpose (especially education) and wind up using the monies to buy a truck, or something else.


Borrow money for education???? Get an education.
 
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Old 01-22-2010, 06:17 AM
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You could always tell them you are studying cars.
 
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Old 01-22-2010, 07:59 AM
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Originally Posted by jake00 View Post
I think it would work, I knew lots of kids who "lived" on their student loans while in college
As did I. They took the extra money from financial aid and loans that is dispersed by the school.
 
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Old 01-22-2010, 08:00 AM
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Originally Posted by F250racer View Post
I can afford to make payments. I just thought if I took out a student loan and used that I could pay it back before I got out of school, meaning I'd end up paying no interest.
Just trying to check out all my options before I pull the trigger.
Be careful with that. I believe that if you start repayment on a loan you have to continue paying it or something like that.
 
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Old 01-22-2010, 08:46 AM
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The best thing is to buy a car that cost as much as the cash you have or less. We own a 97 Blazer 4x4 when bought had 87,000 miles now 131,000 miles for $5000 cash. We bought a Jeep Grand Cherokee Limited 5.9 last year for $3300 with 120,000 miles. So for $8300 we have two perfectly good 4x4s. So if you can't buy a car for a few thousand dollars PM me I'll see if I can't find you one. Screw payments. Buy within your means & that is the amount of money you have in cash. Why people work so hard to put money in the dealers, & banks pockets & make them rich is beyond me. The purpose of working is to put as much money in MY pocket NOT someone else.
Craig
 
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Old 01-22-2010, 08:54 AM
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There is nothing wrong with having a car payment. With my Explorer recently totaled I am looking for a new vehicle and am certainly willing to take out a loan on it. I have my budget laid out and know what I am willing and able to pay for the vehicle. Of course it will be a used truck as opposed to new.

That being said, having a car loan in college sucks. I bought my Mustang when I was a senior in high school and worked my tail off in high school and in college until I paid off the loan.
 
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Old 01-22-2010, 09:28 AM
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I also think that if your a student, just get a cheaper vehicle for now, and dont worry about the loans. Now a days you can find some pretty good deals out there.
When your done school then go out and treat yourself to a new truck or something!
 
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Old 01-22-2010, 01:57 PM
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Originally Posted by jake00 View Post
I think it would work, I knew lots of kids who "lived" on their student loans while in college
Yeah, my brother did that while he was in college and in law school. I don't know how but he always got a couple extra thousand on his loans which he lived off of and used to buy motorcycles and cars and other things.

Of course now he's got $100K+ in school debt and he's got huge monthly payments...*shrug*
 
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Old 01-22-2010, 02:52 PM
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I was still in kolidge when I bought my first car but I was also working full time.

I either had no car (lived on campus) or used one of my parents "other" cars every now and then.
My first vehicle I got when in college was a 83 F250 4x4 for $1300 (in '99). I was able to pay cash and was working 1/2 time and going to school 1/2 time.

Knowing what I know now I would have bought a car or a smaller truck.
Recently (Oct '09) I picked up a '02 Focus Wagon with 148K for $1600 cash and I use it more than my Ranger. Other than physical weight the wagon holds just as much as the Ranger and the stuff stays dry. I put some dedicated snows on it and it handles just as well on snowy pavement as any 4x4

Also from my limited knowledge student loans are 6-7% and auto loans can be found for 5-8%. Student loans are not interest free. Some loans start right away with interest and others do not start until you are no longer a full time student but there is still interest. Some student loans allow you to pay the monthly interest while going to school.

Good luck on what ever you do.
 
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