Can I get a new car loan if I'm only 19?

I want to buy a new car, but I don't want to drop $20,000 at once. Can I get a car loan even if I'm only 19 years old?

Answer
Anyone 18 and older is legally eligible to take on debt, such as a credit card or a car loan. So as a 19-year-old, you can certainly apply for a car loan.
However, the main problem with getting a car loan at 19 is finding a lender that will accept you. Even if you have steady income, you may not have enough established credit history to get approval.
That said, you can always have a parent become your cosigner, which can significantly improve your chances of getting a car loan.
Before you apply for a loan, follow these steps:
  • Check out your credit report to know your score
  • Look at lenders to see what the best car loan rates are
  • Try to get preapproval so you can budget and you know how much your interest rate might be
  • Save up about 10-20% of the car’s value to use for a down payment
Doing all of these things will put you in the best position to secure a loan. However, you should also budget for your car insurance, as the average price of full coverage car insurance (which your lender will require) is about $366 a month.
Want to find the best rate for your car insurance? Download the Jerry app to compare rates from over 50 top insurance companies hassle-free.
Eric Schad
Answered on Nov 15, 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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