Can I get a car loan at 18 years old?

I just graduated from high school and I’m taking a year off to work before I go to college. I want to buy a car to get to work, but I don’t have any money saved up to buy one with cash. Can I get approved for a car loan if I’m 18?

Answer
Congratulations on graduating from high school! That’s a big milestone and one that sets you off into adulthood. Now that you’re an adult, you might be pleased to know that you can get a car loan as an 18-year-old.
However, your odds of getting approved for a loan hinge on your income level and credit score. Because you’re only 18, you likely don’t have much credit built up. Furthermore, you stated you don’t have cash for a car, so you probably don’t have a steady income either—at least not yet.
Therefore, your best chance to get a car loan is by finding a cosigner. A cosigner is another person who takes on the responsibility of paying the loan if you fail to pay. That said, a family member—and preferably one with good credit—is the ideal choice for a cosigner.
Having a cosigner not only increases your chance of approval, but it can also snag you a lower interest rate, meaning you’ll pay less interest over the life of the loan. Just make sure to shop around to get the best interest rate available before signing on the dotted line.
If you manage to find a cosigner and gain approval for a loan, remember that you’ll also need full coverage car insurance per the stipulations of your car loan. Shop around to find the best rate possible.
The Jerry app will find and compare quotes from over 50 top providers. Once you pick a great rate, Jerry can help you buy your new coverage and even cancel your old policy. The average Jerry customer saves a whopping $879 per year!
Eric Schad
Answered on Dec 01, 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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