How prudent is it...

NYSpeed Automotive NYSpeed Off Topic
1

to use a student loan on a car? There seem to be several advantages, namely that I can pay back at any rate i wish (i.e. $1500/mo in the summer and $150/mo when im in school and working much less). Also, from the research ive done, I’d end up paying much less in interest. Basically the main advantage I see is not having a set monthly payment. Ill be borrowing about $15k-$20k. Im just curious to see if anyone can offer any insight into any disadvantages of this…

edit: I should also add that I dont forsee that I will be needing a loan for the remainder of my education (3yrs)

Thanks

2

i know a few people who have used student loans for cars. Seemed to work alright for them.

3

The problem is if you pay it bak like that, you’ll be upside down on the loan VERY quickly, so you’ll still be paying for it when the car isn’t worth anything.

4

yeah, good point, i guess as long as he is responsible with the payments and doesn’t make 150 dollar payments all the time he will be fine…

if he were to make 350 dollar payments all the time, then fell into a brief spell of shortage of funds, he would be ok… but you are right, if he rolled on 150 dollar payments… after 2 or 3 years, he’d be screwed…

5

Well the idea is to have about $10k paid off by the end of summer, and the whole thing paid off well before I graduate…

6

ALSO student loan on a car wont require “full coverage” insurance… cuz they dont know that you used it to purchase a “liability”

7

Not having full coverage is totally retarded, especially on a $30k car…

The idea of a student loan looks pretty good right now, ill see what happens by the end of the week…

8

didnt know it was that expensive of a car… i dont run full on my bike cuz it costs about 10x as much as liability… actually more than 10x… 3k a year for a 9k bike isnt worth it to me… what car are you lookin at now?

9

That makes sense on a bike

10

yea… def… so what are you gonna buy?

11

idk, something lame probably

12

Who are you going to for the student loan?
I need one to pay for next semester and the sooner the better.
suggestions?
I looked into them once and it seemed like i would need a co-signer

13

Well im still kind of shopping around. But I too will need a co-signer, good ol dad is gonna help me out with that…

14

for some reason i feel as though there was a story once where someone used a school loan on a car, and then they found out, and wanted the money paid back in full within a month…am i wrong there?

15

:bsflag:

:snky:

16

if you really are responsible and can knock it out, i think its a good way to go. for me its credit union FTW, but in your case i think you are best off doing it your way AS LONG AS you pay it off quick quick quick as possible.