Two Disadvantages of Taking out Student Car Loans

Let us discuss two drawbacks associated with applying for student car loans.

• Risk of dealing with loan sharks. First-time car buyers run the risk of taking out student car loans from loans sharks who might take advantage of their inexperience and naivete. To succeed in their ultimate goal of ripping off credit consumers, loan sharks normally employ the following tactics:
  (a) charging exorbitant interest rates, fees and charges (b) pressuring and, to some extent, harrassing students to sign up for credit programs, even without fully-understanding the rates and terms imposed on their car loans; and (c) stealing the identities of credit consumers, for their personal gain. To protect yourself from such schemes, we suggest that you deal only with credible and legitimate credit organizations.
• An additional financial obligation. Adding a new financial obligation can make it harder for you to manage your personal expenses, especially if you will sign up for a car loan without examining first your financial capability. To avoid such disadvantage, we encourage college students, like you to carefully examine their income and expenses very carefully so that they can determine whether or not they can afford to take out credit accounts to purchase their own vehicles.