PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
Is it possible to use a student loan to purchase a used car?
I want to get a car when I go to college, but I don't have any money to do so. Can I use part of my student loan to buy a car?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Is it possible to use student loans to buy a car? Sure. Is it a smart move? No.
Once you obtain the money for your student loan, you’re not legally bound to spend it in a particular way. However, using this money to purchase a car isn’t a financially savvy thing to do because:
- You’re purchasing an instantly depreciating asset
- Student loans have higher interest rates than normal car loans
- You’ll be making payments on the car for longer than you’ll want to keep it
Therefore, you should avoid buying a car with a student loan. Instead, look for a good value on a
used car
and buy it with cash. It’s best to use your student loan money for its intended purpose: furthering your education.However you obtain your car, remember that it’s illegal to drive without
car insurance
. Use Jerry
to compare dozens of competitive quotes and find the best savings for your desired coverage level.View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies