Question:
can an 18 year old get a car loan?
Barbie
2009-08-02 20:15:21 UTC
Im 18, I work minimum wage and only about 10 hours a week,
i go to cosmetology school full time., i freelance hairdressing on the side.
and i was wondering how i get a car loan for $11,000?
i have a co signer but i dont feel like going to a autoplace and having the, explain, because they obv just want the sale.

so can someone explain this process to me?
how much do i have to put down?
how does the loan thing work?


thankyou!
Nine answers:
ixthus_km
2009-08-02 20:34:02 UTC
At your current working situation, on the 10hr per week job, you are only making $3800 per YEAR, before taxes. Unless you do A LOT of freelance cosmetology on the side, unfortunately you cannot affor an $11000 car.



The best thing to do, however, is to find a local, reputable credit union and joint it. They are usually very inexpensive to join, and will give the best rates on loans. They may not approve you for a loan with your above-the-table income, but possibly with a co-signer.



You will pay hundreds, possibly thousands less for your car however, if you make monthly payments to a savings account, and then buy a car outright. I don't mean any offense, but its true. Try this site:



http://www.bankrate.com/calculators/auto/auto-loan-calculator.aspx



By this calculation, you will pay $13382.40 for your $11000 car, if you are able to get an 8% interest rate, on a 5 year loan.



Good luck!
?
2016-09-26 11:57:12 UTC
1
Pearls Before Swine
2009-08-02 20:21:35 UTC
If you can get a loan, it'll probably be an expensive (high interest, high down payment) loan, because you're a credit risk (young, low income).



In your situation, I would consider whether I needed a car at all - could you use public transportation maybe? And if you really need a car, maybe you could get one that costs less than $11K. You can get a decent used car for a few thousand - like a Toyota or a Honda. It may not be pretty or cool, but it will be affordable and that's what counts until you're making more money.



Also remember that besides car payments, you will also be paying for insurance - that can vary a lot depending on where you live, but for sure it will cost more the more your car is worth, and the younger you are.
?
2009-08-02 20:29:15 UTC
Ten hours a week at minimum wage? That's $250 a month after taxes.



You can't afford an $11,000 car.

I'd be surprised if you could afford the payments on a $2,000 car.



The bank won't loan you the money unless you can find a fool (er, cosigner) who's willing to put their credit at risk to make your payments.



I suggest you read the Bible, specifically Proverbs 6:1-5

"1 My child, if you have put up security for a friend’s debt

or agreed to guarantee the debt of a stranger—

2 if you have trapped yourself by your agreement

and are caught by what you said—

3 follow my advice and save yourself,

for you have placed yourself at your friend’s mercy.

Now swallow your pride;

go and beg to have your name erased.

4 Don’t put it off; do it now!

Don’t rest until you do.

5 Save yourself like a gazelle escaping from a hunter,

like a bird fleeing from a net."



(Translation, have you ever seen a gazelle being chased by a cheetah? He's got total focus on only one goal: escape.

If someone's in debt, they should use that same kind of total focus to escape the trap of being in debt.)
ibu guru
2009-08-02 20:25:24 UTC
Your income does not qualify you to get a loan - any loan, no less $11,000. Your income is insufficient to pay the loan amount, so how can you pay gas, maintenance, insurance, etc?



You're just 18, have no credit established yet, no money, no real job, no income to speak of, and no way to pay the loan. Not even a cosigner will save you on this one. Forget it.
2009-08-02 20:46:07 UTC
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Keep using answers.yahoo.com
?
2009-08-03 10:08:43 UTC
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?
2009-08-03 05:52:41 UTC
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