Most college students will want to have a car when they take off for college, and there are many pluses to owning one. If you are purchasing, it�s great for raising your credit rating, which comes in handy later buying a house. At some schools it may even be downright miserable to try and go without one. Consider that some suburban schools or the necessity for some students to have an off-campus job. The Independent Agents of America (IIAA) surveyed and showed that nearly seventy percent of students have a car. With all that in mind, here are some things to think about before making the investment.

Most students or parents of students will be tempted, sometimes financially, to purchase an older model used car. Remember that buying older may be cheaper right now, but could sink you in maintenance costs down the road. The converse is true with a new car, which costs more right away but will save some money in long term maintenance. From a credit standpoint, keep in mind that student loans can sometimes get you classified as high risk, leading to a higher interest rate. Make sure that, like any large purchase, you shop around for a good rate. Often automakers will offer special discounts for new buyers or recent graduates.

The best option here is usually staying with your parent�s policy. However, once you own the car, expect to have to move the insurance into your name, and don�t be surprised when the premiums rise. Several factors will determine just how much your rates will go up. Contributing factors are the type of car, your previous driving record, the area you drive in, and your age. Men under the age of twenty-five get hit the hardest. They pay more in premiums than any age group of driver except those older than seventy. The reason for this is the statistical likeliness of this age group having an accident or committing a moving violation. Be careful on the road. Causing an accident or getting a ticket will cause premiums to jump. Another survey by the IIAA showed that one in every ten college students causes an auto accident and one in four is ticketed. While tempting, owning a sports car near a large city will greatly increase insurance premiums, so they should probably be avoided.

There is some good news, though. Taking a driver�s education course can lower your premiums. Good grades are another way to drop the cost. Plus, on your twenty-fifth birthday the insurance company will most likely cut your premium costs by ten to twenty percent. Tying the knot will drop your rates a little, too.

This is where the financial commitment of having a car can blindside people. Regular tune-ups and check-ups, gas, oil changes, annual license plate renewal, and parking fees can add up quickly. Parking especially can hit hard for students who have to pay hundreds every year for a parking pass, and some colleges do not even allow first-year students to have cars. In larger cities parking can be hard to find and expensive even off-campus.

Do not forget about the relationship between the have and the have-nots. Being the kid with the car is a sure way to get asked for favors from the students who don�t have one. This can even result in becoming the dreaded designated driver, which usually leads to making sure that everyone gets back to their homes safely. There is a price to pay for being everybody�s best friend.