"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
“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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Johnny Puckett
Answered on May 25, 2021
Johnny Puckett is a freelance writer and automotive expert. He has contributed content to a number of some of the largest online publications, aftermarket automotive manufacturers’ sites, and automotive informational sites. His experience in the automotive and information fields informs his writing at Jerry. His automotive interests bleed into his free time, where he enjoys modifying his favorite cars and woodworking.
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