Is it smart to get a car loan at 19?

It’s very possible for a 19-year-old to get a car loan without a cosigner, but they need to have good credit, a steady job that earns them enough income to qualify, and possibly a substantial down payment. Not every 19-year-old has all three, especially if they’re a first-time buyer.

Should a 20 year old finance a car?

Typically, a bank won’t finance any vehicle older than 10 years, even if you have good credit. If you don’t have great credit, you may find it difficult to finance through a bank, even for a new car. But, banks are far from the last option when it comes to auto lending.

How much income do you need to finance a car?

Whether you’re paying cash or financing, the purchase price of your car should be no more than 35\% of your annual income. If you’re financing a car, the total monthly amount you spend on transportation – your car payment, gas, car insurance, and maintenance – should be no more than 10\% of your gross monthly income.

Do you have to be 21 to finance a car?

Generally, you need to be at least 18 years old to obtain an auto loan, and things aren’t much easier for minors hoping to pay in cash.

Is it hard for a 21 year old to get a car loan?

You can get a car loan in your 20s. It’s not like there’s some unwritten rule or secretly imposed age limit. Whether an applicant is 25 or 45 years old, a lender is going to assess the same financial criteria.

Can you finance a car at 21?

Depends on the mileage but finding a reputable lender that will give you a secured loan on a 21 year old car is the real question. That said if you buy it from a dealer who owns the loan (buy here… pay here) it’s possible.

How hard is it for an 18 year old to get a car loan?

Turning 18 means you are old enough to apply for a car loan; however, it doesn’t mean you will get one. If you take a look at an auto finance companies list, you’ll find they generally want you to have two years of built-up credit in good standing before they are willing to take a risk on a car loan.