Car loan as a student?
Hello,
Information about me: I am currently a working student and earn €1,150 net per month plus a €260 orphan's pension. I have no fixed expenses other than monthly tuition fees of €370.
In other words, I have around €850 available per month.
This is about me applying for a car loan of between 10000-13000€ (200-300€ monthly | That is, 60-72 months)
My mother would act as guarantor. However, she is a pensioner herself and earns €650 in pension plus €1,050 in rental income.
Can this loan be applied for?
Another option that I would prefer, but am not sure if it is even possible, is the following:
I've been considering applying for a KfW student loan for these €10,000-13,000. The loan will then be paid out over approximately 20 months (€650 per month).
However, the question is, am I allowed to finance a car this way? In other words, can I finance cars at car dealerships on a monthly basis without taking out a loan? I could then "pay off" the car in two years. I would pay off this amount after I graduate.
(1 rating, 1 votes, rated)You need to be a registered member to rate this.
Loading...
First of all: You should never buy a consumer item like a car on credit. What if someone crashes into you and the car is wrecked? That happened to me with a 3-month-old small car. I was innocent; the car was a total write-off. The car lost about 20% of its original price in those 3 months.
If you buy the car on credit, you continue to pay the loan for a car that you no longer have and you also need another loan for a new car.
In terms of salary, I don't even know if you're above the garnishment limit – because I'm not sure whether child benefit and orphan's pension are counted as earnings or not.
I would never have asked my mother to do that, and I wouldn't do it for my daughter either, unless it's absolutely necessary or an emergency. Do you really need a car? Don't you take public transportation to university (even if it means a longer commute)? And why does it have to be such an expensive car? With a bit of searching and luck, you can find "pensioner cars." They're old, have few miles on them, and are usually well-maintained—and still not particularly expensive. Or I'm currently selling my 14-year-old Mazda 2. It's in top mechanical condition, has never had any major repairs. Drives extremely reliable—BUT I can't get much for it anymore because it has a few cosmetic flaws. Someone scratched my car the entire way with their key twice, and since it was always parked outside, the paint has faded considerably.
Then your mother will hardly be accepted as a guarantor. The rental income certainly won't be counted as 100% income. And if it's only counted as 50%, it's below the seizure limit.
then just save for another year and then buy a cheaper car without a loan
What about leasing? Do car dealerships offer leaseable cars for students? If I were to lease a car for 2-3 years for around €200-300, for example,
Check with some car dealerships about a lease agreement without a down payment.
You would have to compare the rates for a loan plus interest with a leasing rate.
You will not get the loan because you do not have any income that can be seized.
Regardless of the fact that I think it's disgusting of you to let your mother act as guarantor and stupid of her to even consider it, the bank will not accept your mother because she also has hardly any income that can be seized.