How do I get a car loan if I'm 18?

I want to get a car loan, but I'm 18 and I have no credit history. Can I still get a loan?

Answer
At 18-years-old, you can enter into legally binding contracts such as a car loan, so from a legal standpoint, this is no obstacle.
The true problem lies in the fact that you have no credit history. Since you have no credit history, you’re going to have a hard time finding a lender to approve you for a car loan—even if you have a steady income. Therefore, you need a few alternatives:
  • Get a credit card and build your credit for a year or more
  • Buy a used car with cash
  • Get a cosigner or co-borrower for your car loan
The latter is the most direct way to get a car loan, so if you can find a family member or a parent willing to be a cosigner, that’s a bonus for you. Simply apply for the loan with your cosigner, and you should be able to get a fair rate if your cosigner has a good income and a solid credit score. Just know that your cosigner will be on the hook if you can’t make a payment.
Keep in mind that you will also have to pay for full coverage car insurance for the duration of your loan, which can get mighty expensive for a teenage driver. To cut your costs, use the Jerry app. Download the app, sign up in minutes, and you can browse rates from over 45 different insurers.
Eric Schad
Answered on Nov 03, 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.
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