Can an 18 Year Old Get a Car Loan?

We start to dream at a very young age, and with time, we want to fulfill our dreams. One common aspiration of the young ones is cars.

 Many of us start to watch vehicles of different brands and models from a young age. Mainly from there, we set ourselves a goal that we need to own that car. 

As soon as we are 18, we try to own a vehicle for ourselves cause we have our own earning at that time and can pay the expenses of the car. 

Usually, someone at the age of 18 may not have the money to afford a car. Then the best way to afford the car is to get a loan. But the question is can an 18 year old get a car loan? We will have the answer by the end of the article.

Can I get a loan at 18?

can an 18 year old get a car loan
Can I get a loan at 18

Yes, you can get a loan at 18. According to the law, anyone under 18 is considered a minor and can’t have his financial statement. 

As soon as you’re 18, you longer a minor, and you can lend money from the bank.

Car loans are given based on what?

can an 18 year old get a car loan
Car loans are given based on what

Buying a car is very exciting, but meeting the requirements can be very stressful. Generally, the car loans are given based on the following criteria:

  • Borrower’s ability to repay the loan. It means that you need to have a job and a steady income.
  • Lender’s exposure on loan. The possibility of having to re-sell the vehicle with a significant down payment.
  • The most important thing is the credit history which the bank looks at first. How can you handle the debt, in general, is assessed by it?

What are the qualifications to get a car loan?

There are some factors which the institution is giving you a loan assessment as you are a first-time buyer, so that you may face some problems. The qualifications you need are:

  • Income: The lenders pay heavy importance to your income. For most subprime lenders, you would need a minimum monthly payment of 1500 to 2000 dollars. The lenders also watch your income history because they want to see if your income is steady or not.
  • Credit: As you are 18 so there are high chances that you don’t have any credit or a minimal amount of credit. This is where a problem may arise because the institutions want regular credit reports and put a lot of emphasis on it. For this reason, it is easier to get a loan from a subprime lender than from a traditional one.

How to get a car loan at 18?

There are some tricks you need to apply to get a car loan at 18. Although they may sound basic, you need to have them in your mind while trying to lend money.

  • I am finding a cosigner. Cosigners are adults who acknowledge that if you can’t or don’t pay off the money, then he/she will pay off the amount. Take responsibility and don’t let the cosigner down.
  • You have a steady income. You need to have a job to show the institution lending you money that you have an income. The bank will see if it’s collected or not, so be careful.
  • Make a sizeable down payment. Typically down payment is 10% of the original price, but if you increase the down payment to 30% or 50% then the lenders become more attracted to you and are more willing to lend you money. Large down payments make less risk for you.
  • You are looking for car dealerships with in-house financing. You’ll have to work with the dealer to determine what you can afford. They will assess your income, job, credit, and other things and calculate your loan amount. Then they will show you the cars that you can afford with that loan.

If you follow these steps correctly, you wouldn’t want problems getting a car loan, even if you’re 18.


Many times we see that the teens can’t control the craze of getting their car. Though it’s undoubtedly a good thing, the excitement could lead to problems too.

 So, before affording a car, you should patiently think about all the factors and then observe which car you can afford and which one will be better. 

You need to have a good credit history which is very important whatever you do, so always try to maintain it. I hope you have found the answer to the question whether an 18 year old get a car loan or not.

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