<prompt> Human: Hi, I just finished my sophomore year and am completing my undergraduate studies on a full 4-year scholarship. I pay basic living expenses during the school year, such as food and rent, by working and using a college fund set up for me by my grandfather. I plan on attending graduate school immediately after undergraduate, but should be able to complete that without taking out student loans by teaching undergraduate classes, working, and utilizing the college fund. I am currently back at home for the summer working a job to earn money for a car, which I plan on purchasing at the end of the summer. Accounting for the money I have already saved and my predicted earnings, I should have about 7000 by the end of the summer to buy the car with, including tax, title, registration, etc. I figure I could get an alright car with about 100k miles on it with that, which I am okay with.However, I was wondering about the advantages and disadvantages of taking out a car loan at the end of the summer to buy a pretty good used car with, one with less than 50k on it and that will for sure last me past graduate school. This could result in lower maintenance costs and would build my credit, as I currently have none no loans nor credit cards.Please tell me what you would do and your thoughts on my situation.  <response>: Do not take out a loan to build credit. Get a student credit card and pay it in full every month. If you have nolittle credit history youd probably get a horrible interest rate as well.Do you need a car? 