What's the easiest way to get a car loan at age 16?

I'm 16 and I've been saving my whole life to get a car. The only problem is that I'm about $6,000 short of what I need to get the Mustang I want. Can I get a car loan?

Answer
Saving up your entire life to buy a Mustang is amazing for a 16-year-old. You’re certainly a motivated individual.
Here’s the bad news: you can’t legally get a car loan until you reach the age of 18. Since you’re 16, you’re still technically a minor, which means you can’t sign any legally binding contracts such as loans.
However, you may have some alternatives. If you can wait two years, you can get a car loan. Judging by your savings rate, however, you might even have enough money to pay cash for the car by then.
Alternatively, you can buy a used Mustang for cash. If you buy from a dealer, the dealership guarantees the mechanical integrity of the car through a warranty, which might be a better option than buying from a private seller who offers no promises or warranty.
Whatever you choose, just remember that car insurance payments for younger drivers are expensive—especially for a sports car like a Mustang. To save some money, you should definitely use Jerry to shop around for car insurance rates. Jerry will let you compare rates from up to 50 providers in just minutes!
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.
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