"How much of a car loan should I be looking for at age 18? "

"My local dealer has a low-mileage Altima for sale for $12,000. I have about $5,000 saved up.

I could definitely afford a $300-per-month car payment, but I only work a few days a week and that would be most of my monthly income. Could I get this car loan? Or do I have other options?"

Answer provided by
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Johnny Puckett
Answered on May 25, 2021
“Given your current situation, you unfortunately won’t qualify for a car loan without a cosigner.
Lenders will require you to have a stable income of more than $1,500 per month, and your car payment plus your insurance payment cannot be more than 20% of your monthly income.
As far as your other options go, it is completely possible that you could find a decent car for about $5,000. By buying a car outright with cash, you can avoid monthly payments and interest charges. “
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