While you can’t do it alone at age 16, you could get a car loan with a co-signer such as a parent. Alternatives include getting a private loan from your family or settling for a car you can afford without needing a loan.
Can a 15 year old get a car loan with a cosigner?
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.
When do you need a co signer for a car loan?
Lenders may ask you to find a co-signer if you seek a car loan but have a poor credit rating, inadequate income, or too little time on the job. Adding the co-signer’s good credit to your loan application can often help you to get the deal, but there can be situations where even a great co-signer isn’t enough.
What happens to my credit if I cosign a car?
Once you sign the loan documents, your name is added to the loan and it gets listed on your credit reports. As a cosigner, you don’t own the vehicle, but you’re still responsible if the primary borrower fails to make a payment. In other words, if the primary borrower misses a payment or defaults, the lender is going to come after you for them.
Can You co sign a car loan if you have perfect credit?
They are in desperate need of someone to co-sign their auto loan and, given that you are gainfully employed and possess a perfect credit score, they have, of course, come directly to you. They assure you that it’s only a formality and promise never to get behind on the payments.
Can a person with no credit get a car loan?
If you have no credit score and a financially-able close relative, you both may benefit from a co-signing arrangement. In a case described by one of the major U.S. credit reporting bureaus, a lucky person with no credit—not bad credit—was able to find an auto loan for 0% interest.
