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? asked in Business & FinancePersonal Finance · 9 years ago

How to get a car loan when I'm 18?

I'm going to be 18 next month, thus I won't have any established credit. I need a loan for a car, anywhere from $3000 - $6000, whatever I can get in between that range.

The things is, the only people who can cosign for me (because I lack credit) are my parents and they've had bad credit since we foreclosed on our house a year ago (parents lost a lot of their income due to the economy). I don't have anyone else at the time so that's out of the question.

I have a part time job that pays $7.69/hour and I work roughly 17-20 hours a week.

I've been looking into this and I'm just searching for a rough estimate (so no screaming at me because you can't determine based off the given information, etc.), but would any bank be willing to give me a loan based on these factors?

I've also been looking into credit unions and I was wondering if I signed up for one, would I instantly be able to take out a loan or do I need to develop any kind of credit/relationship with them for that too?

I appreciate all answers. Thank you!

Update:

Also, I have had a checking & savings account with Chase for about 2 years now. I'm linked to my mom's account because I'm still a minor. If that means anything in terms of acquiring a loan.

4 Answers

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  • Alex
    Lv 7
    9 years ago
    Favorite Answer

    I'm sorry, but I don't think a loan is in your near future. Start saving every penny you can toward buying a car in cash.

    The best idea before taking out a car loan is to take a trial run by estimating the monthly costs of having the car (loan, insurance, gasoline, regular maintenance, annual stickers, etc.) and putting that amount in savings for a few months before buying a car. This lets you know if you can afford the car and builds up a down payment. There are lots of loan calculators online and many insurance sites offer free quotes online. General rule of thumb (the 20/4/10 rule) is that you should have a down payment of 20% and the loan should be 4 years or less and your monthly loan payment shouldn't be more than 10% of your income.

    You don't make a lot of money and you don't have credit, so I doubt you'll be approved for a loan. So run that monthly calculation without the loan payment and start putting at least that much in savings every month. It may take a while, but you will save up enough to buy the car in cash.

  • ?
    5 years ago

    1

    Source(s): Super Fast Car Loans - http://carloan.trustdd.com/?uZkh
  • ?
    Lv 7
    9 years ago

    You won't be able to get a loan beacuse you are a minor. You have to be 21 to be able to enter into any kind of a contract. This includes loans. You also have no credit history Even if you were 21, if you have no credit history, no one will give you a loan. If your parents have poor credit, they won't be able to help you either.Also, you don't even make enough money to be able to get a loan for that much. In order to work towards getting a good credit history, you have to start out by like getting a credit card from your bank. Then, over time, you can build your credit by being responsible credit card holder.

  • !
    Lv 7
    9 years ago

    You won't get one at 18 for that amount/purpose when you earn so little and have no credit history.

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