It’s that time of year again. Tens of thousands of students are getting ready to graduate from either high school or college. If you’re the proud parent or grandparent of a soon-to-be graduate, you might be contemplating whether you should help your loved one get the financing he or she needs to buy a vehicle by cosigning a car loan.
Many recent high school and college graduates struggle to get car loans on their own, mostly because they haven’t had the chance to establish a credit history. While some lenders might be willing to extend a loan to someone with bad or no credit, the borrower will normally have to pay an interest rate that is much higher than it would be if the person had a track record of paying off secured and unsecured loans in a timely manner.
Whether your child or grandchild is interested in buying a 2015 Dodge Challenger, a 2016 Chrysler 200, or something else, you may want to consider cosigning a car loan to make purchasing any vehicle at least a possibility for your relative. When someone’s application for financing is rejected, a lender might reconsider its decision if someone with a good credit score is willing to cosign for the loan.
In addition to making it possible for your loved one to buy a vehicle, cosigning for a car loan will help your child or grandchild establish a credit history. This gives your relative the chance to open new credit accounts in the future as long as he or she continues to make payments on the auto loan on time.
If you’re going to cosign for an auto loan, the finance experts at our Chrysler dealership near Longwood, FL can make the process easy for you. Contact or visit Fields Chrysler Jeep® Dodge RAM today to learn more about the financing options we have for recent graduates and first-time car buyers today.