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Can I use student loans to buy a Jeep Wrangler?
I've been on the fence about going to college for a while, but my parents are forcing me to go. Loan money for my tuition just hit my account, but I'm thinking of buying a car instead. Can I use the student loan to get a Jeep Wrangler?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
A Jeep Wrangler is an awesome piece of American engineering. That’s not debatable. However, using student loans to purchase this car isn’t a great idea.
It’s true that student loans go straight into your bank account and no governing body can tell you how to spend the money (unless your lender paid the school directly). But there are a few reasons you should not spend your student loan money on non-educational expenses:
- Interest rates are typically high on student loans, meaning you should focus on paying them off quickly
- A car is a depreciating asset, unlike your education
- You might have to pay for the Jeep for 10+ years, long after you’ve gotten rid of it
Instead of using your student loans to purchase a Wrangler, find a used one that you can pay cash for. This will help you avoid financial hardship in the future, and you’ll still have a set of wheels to get around campus.
If you decide to buy a used Wrangler, make sure you protect it with a good car insurance policy. Hop on the
Jerry
app to compare quotes from up to 50 top insurers and find the best rate for your coverage needs. Don’t forget to apply for a good student discount
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- Gregory R.
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