Can you take out a car loan at 18?

I turned 18 a couple of weeks ago and have been saving up to get a car. I’m not quite there, but I heard I could get a car loan to cover the rest. I know I can’t rent a car until I’m 25, but can I get a loan?

Answer
You can get a car loan at age 18, but it may be difficult if you don’t have much of a credit history. Your chances of getting approved for a loan will be higher if:
  • You apply with a cosigner who has good credit
  • You can find a lender that works with students or people with short credit histories
  • You’re able to make a relatively big down payment on the car
Once you purchase your first car, you’ll also need car insurance. To find cheap car insurance fast, use the Jerry app. Jerry compares insurance quotes from over 50 providers and can help you get signed up for the policy of your choice.
Lauren Smith
Answered on Nov 17, 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.
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