Can you get a car loan at 18?

Can I get a car loan if I'm only 18 years old? I'm turning 18 next month and want to get a car. I'll need one when I go to college, but I can't afford a car without some help.

Answer
Finding a car loan at 18 can be tricky, but try not to worry! You should be able to get one without any issues if you find a cosigner with good credit.
Lenders use your credit score to determine whether or not you’re likely to pay off your debts. Unfortunately, this means that lenders view young people without credit histories as a high risk. A cosigner with a good credit score will assure lenders that they’ll still get their money if you can’t pay.
With a cosigner, banks and credit unions are a great place to look for loans. But if you can’t find a trusty cosigner, some lenders may work with students.
Before you sign a contract, consider the following:
  • APR: The annual percentage rate is what you’ll pay in interest each year. Try to make sure it’s low.
  • Term length: Longer loans can often lead to problems down the line. The shorter the term length, the better.
  • Prepayment penalties: Some contracts ensure the lender gets paid interest by penalizing you for paying off the loan early.
  • Down payment: In general, a larger down payment will get you better terms on your loan.
Remember, you’ll still need insurance before you drive your car off the lot. To make sure you’re getting the best rate on the coverage you need, try Jerry. A licensed broker, the Jerry app will help you find and compare quotes from over 50 top insurers for free. Users save nearly $900 a year on car insurance with Jerry—and it only takes a minute to sign up!
I hope you have a wonderful 18th birthday and enjoy your new car!
Lauren Smith
Answered on Oct 28, 2021
Lauren has written for World Nomads, the Matador Network, Korvia Consulting, and once upon a time Three Fates Games. She graduated from Columbia College of Chicago with a BFA in Creative Writing. After graduating, she moved overseas and lived in South Korea where she spent her free time traveling and going on road trips with friends. She misses the rest stop potatoes and is trying to figure out how to recreate them at home. She's now based outside of Chicago and when she's not writing she spends her free time reading, playing video games, and exploring whenever she can.
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.
Let Jerry’s experts help you find savings on your car insurance!
No long forms or spam · Get quotes from 40+ carriers
Find insurance savings (100% Free)
rating primary
4.7/5 Rating on App Store