Can i finance a car at 17

An auto loan is a legally binding contract that lays out the financing details of a car purchase. Minors can sign contracts, but they can't be held to the terms of a contract until they reach the "age of majority"—which is 18 years old in almost every state.

As such, few lenders are willing to extend a loan to a minor, and the ones that do require a co-signer. A lender will want to see an established credit history as well, which also presents a roadblock for minors. A minor shouldn't even have a credit report unless they've been added as an authorized user on an account belonging to an adult. If you're an adult with a teen driver at home, one option is to take out the loan in your own name. Once you satisfy your payment plan, you'll be the vehicle's legal owner and can then transfer the title into your adult child's name when they come of age.

Your payment activity is reported to the credit bureaus, which means the loan will show up on your credit report. Car insurance is another detail to consider. The insurance policy is itself another type of contract, so it presents the same legal hurdle the loan does for minors. One workaround is to add your teen to your own car insurance policy. You can think about taking them off when they turn 18, but they may struggle to find affordable coverage on their own as teens are generally seen as riskier drivers.

A lack of credit history can also pose a problem since auto insurers in many states can consider your credit-based insurance score when deciding your premium. This is why many parents choose to keep their kids on their car insurance until they have more experience driving and are able to cover their own insurance payments.

Things aren't so cut and dried if your teen wants to buy a car in cash. For starters, most states will not allow someone under the age of 18 to have a car title in their name. There are some exceptions—Texas, for example, does allow minors to title a car. You can check with your state's motor vehicles department to clarify what the law says.

Beyond obtaining the title and registering the vehicle with your state, there's still the issue of your teen being able to legally drive the car on the road, which requires car insurance. The short answer is no.

However, there are alternatives to consider. Guarantor car finance Another way to secure car finance at 18 is to use a guarantor. Credit checks Beware credit checks when you apply for finance.

Affordability Make sure you can afford the payments, even if your circumstances change. Age 19 to 20 It does get easier to obtain car finance as you get older.

Can you get a car loan with a temporary job? Find out more. Can you get car finance if retired? Can car finance be in joint names? Yes, car finance agreements can be taken out in joint names. Can you have two car finance agreements? Can I take out car finance for my son? Can I get car finance on disability benefits? Am I eligible for car finance?

Teenage drivers often consider an auto loan — financing — as a way of getting the car they want. It might be no solution at all, especially for those under 18 years old. For those 18 or over, there may be a number of financing options. This is a bad way for a teenager to begin a lifetime of buying cars and managing money. It can easily result in loan defaults, repossessions, and credit problems that will haunt them for years to come. The most common method for teens under the age of 18 to get a car is to have their parents buy it for them, possibly with an informal family loan arrangement.

That's why we provide features like your Approval Odds and savings estimates. Of course, the offers on our platform don't represent all financial products out there, but our goal is to show you as many great options as we can. While some lenders consider people who have little or no credit history , beware that you may be charged a higher interest rate for your auto loan than someone with a long track record of making on-time payments.

Some lenders specialize in working with people who have little or no credit. So, be prepared to show that you have a reliable source of income.

There are lenders and auto manufacturers that have special programs for first-time car buyers and students.