Can an 18-year-old get approved for a small car loan?

"I just turned 18 and I want to get a car to go to school and my job. I want to spend about $6,000, and I have $2,000 for a down payment. Can I get approved for a car loan?"

Answer
“You might be able to get a car loan, but chances are you’ll need a cosigner. Since you have a limited credit history, you probably won’t get approved on your own.
In addition, you already have $2,000 cash. Why not just take that money, purchase a cheaper car with it, and build your credit up so you can get a car loan later? That’s a more financially savvy move, and one that you should consider.
If you decide to go along with the loan and get someone to cosign, like a parent, don’t forget that you’re also going to need full-coverage car insurance, including comprehensive and collision coverage. At your age, this might cost $300 or $400 a month, so make sure to shop with Jerry to get the best rate.”
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Eric Schad
Answered on Jul 27, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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