Can someone under 18 get a car loan?

I'm turning 17 soon and I have my driver's permit. Can I get a loan?

Answer
The answer is no. Minors can’t sign legal contracts, and a car loan agreement is a legal contract.
If someone wants to buy a car and needs a loan to do it, they will need to wait until they turn 18. Because their credit history is limited, this loan is likely to need a cosigner in order to be approved.
If a minor needs a car, a parent can buy it for them as a gift or they can set up an informal agreement within the family for the minor to pay them back. A caveat, though: In some states a minor cannot be listed on a car title as the owner, so the vehicle would need to be owned by the parent.
avatar
Jim Donaher
Answered on Mar 12, 2021
Jim Donaher is a freelance writer and manager with over 35 years' experience in the insurance, banking, and investment management businesses. He provides expertise on a range of topics and is able to explain complex industry information in layman's terms. Jim is the author of two books, including Call Him, He's Home: A Guide to Prayer for Regular People and Then Larry Smiled, a novel about life, death, accountability, and salvation. Taormina, Sicily is his happy place!
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.

Read advice from car experts at Jerry

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings — it's 100% free