Here's how they could improve their chances:
* Co-signer: The most likely path to success is finding a co-signer with established credit and a stable income. A parent or other responsible adult with good credit could significantly increase the chances of approval. The co-signer accepts responsibility for the loan if the student defaults.
* Longer Work History: Even a few more months of consistent employment would significantly strengthen the application. Demonstrating stable income is crucial.
* Savings: While they have a 10k down payment, showing additional savings demonstrates financial responsibility and reduces lender risk.
* Shop Around: Different lenders have different criteria. Credit unions often have more lenient requirements than large banks. Comparing rates and terms from multiple lenders is vital.
* Smaller Loan Amount: Considering a less expensive car to reduce the loan amount needed will make it significantly easier to qualify. A $10,000 loan with a $10,000 down payment is far more achievable.
* Proof of other income: If the student receives any financial assistance, such as scholarships or support from family, providing documentation of this might be helpful.
Why it's difficult:
* Short work history: Lenders want to see a consistent income stream for at least a year, ideally longer.
* Age: While 21 is an adult, lenders may view younger borrowers as higher risk due to less established financial history.
In short, while getting a $20,000 car loan is a long shot with the current circumstances, adding a co-signer or reducing the loan amount significantly increases the likelihood of approval. Focusing on improving the work history and demonstrating financial responsibility will also help in the future.