Student Car Loans without a Cosigner

At, we’ve long espoused the benefits of getting your auto loan cosigned. Maximized acceptance rate and minimized interest rate are the two most commonly-stated advantages. That said, many students find it difficult to get their auto loan cosigned.

Can I Get a Student Auto Loan with No Cosigner?

Yes, you can. But your odds will be much improved if you can show certain items on your application. These include:

  1. A Strong Amount of Money Down: more than 1/10 of the sticker price at minimum. The more the better.
  2. A Vehicle Trade-in: again, the more the vehicle is worth, the better.
  3. A Decent-Paying Job: this is virtually mandatory to get approved as a student without a cosigner.

Items 1 and 2 are interchangeable. Basically, you want to be able to create a greater margin between the price of the vehicle you finance and the amount of money you need in your loan. That way, if you the lender ever has to repossess the vehicle in question, they won’t have such a hard time regaining the outstanding debt through a vehicle auction. For instance, if the vehicle originally cost $12,000 and they only had to loan you $10,000 because you put $2000 down, then they can sell the vehicle for that much less and still break even.

Even if you can’t fulfill all of these items, or any of them, we encourage you to apply for your no cosigner student auto loan via our online application system.  It’s quick to do, hassle-free, and you might just find the lender you need in our vast network of lenders who specialize in student auto financing.

Why Do Lenders Prefer a Cosigner?

If, like many students, you have little to no credit, occupational history, or steady stream of income, then lenders are left to wonder how you will make your payments month in and month out. And, if you were to unable to keep making payments, how would they obtain the outstanding debt since, as a student, you probably have quite minimal assets or wealth?

If this sounds at all harsh on the part of lenders, remember that their jobs depend on making accurate risk assessments, because if they extend credit or loan money to the wrong consumers, then they might not get all of it back, and all too often lost money for the company leads to lost jobs.

A cosigner, however, represents a financial backer, someone who will vouch for your financial tenability by agreeing to take responsibility in your stead. This, in layman’s terms, helps to set a loan officer’s mind at ease and lighten the weight of that approval stamp.

For most students, parents, an older sibling, or a trusted relative with established credit are usually the best prospects as cosigners. For many students, however, finding a cosigner is not an easy task. No surprise with 25% of the US population already suffering from bad credit, many students have parents and loved unable to co-sign due to issues with their own finances or credit history, bankruptcies, and/or other factors.

Click Here to Apply for a Student Auto Loan Without a Cosigner