Alesha's Finance Advice

University students have a higher risk of buying used cars that is not a good deal. These students are bombarded with ads that show very nice used vehicles at low prices with low financing rates. What young adult wouldn’t want a nice car to drive to school?

It’s not that university students are not smart, it’s just that they may not be familiar with the terms that are commonly used to describe used cars. For example, a salvaged car was in an accident. If you have no automobile buying experience, you may completely ignore the term. It’s not like a dealer wasn’t being honest, but if you don’t know about auto salvage, you won’t know what you are getting into.

Financing is another tricky area for university students. The low advertised terms are usually reserved for those buyers with near perfect credit, not a university student with little or no credit. Buying a pre-owned financed vehicle requires that a person be knowledgeable about how credit works. Getting a poor deal on credit can mean the vehicle’s price has now tripled.

University students are better off going to a reliable dealer who has numerous previously-owned automobiles to chose from. Take a relative who has already made several vehicle purchases for assistance for help in evaluating the vehicle and dealing with financing terms. There are good deals out there, just ignore the hype and focus on finding a reliable car rather than a flashy car.