Will I be able to get an auto loan as an 18-year-old with a 650 credit score?
I need a car to get to work and I found one I like for $20,000. I need a loan to buy it, but I'm worried about approval. Can I get a $20,000 car loan as an 18-year-old with a 650 credit score?
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Answered on May 05, 2021
“If you’re bringing in some income, maybe $1,500 to $2,000 a week, you can probably find a lender to approve you.
Note that the interest rate is going to be outrageous, and you may end up paying a huge amount in interest over the life of the loan.
To compound matters, you’re also going to need full-coverage insurance, so don’t forget about this. At your age, you can realistically expect to pay $3,000 to $4,000 a year for auto insurance, which is something many young buyers forget about.
So see what you can get approved for and add in the cost of insurance. You might decide that a $2,000 car will be a better option than a $20,000 one.”
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