Can someone my age (20) finance a car without a cosigner?

Question

I'm 20 years old. I probably don't have much of a credit history. Do I have any chance of being approved to finance a car up to, say, $10-15k?

Answer 1

Honestly, the only thing you can do is try. Banks and loan companies have varying underwriting standards which are based on MANY factors...your debt-to-income ratio (generally should be under 33%), your credit score, your length of credit history and job, any delinquincies that show up negatively, etc. Also, the amount of your down payment sometimes comes into the equation. You can try to get a loan and then if they ask for a co-signer you can ask them what you can do to AVOID this.

When I went to buy my first car I flat out told the dealer I do NOT want a co-signer. I had to go from looking at new cars to used cars and put a down payment...but all of this was acceptable.

You may want to try e-Loan or Lending Tree or another reputable online loan company who tend to be less stringent than GMAC or other car lending institutions.

Good luck!! If the answer isn't what you want...ask a different question.

Answer 2

If you dont have much of a credit histroy, You will more than likely be required to have a co-signer. Your credit report will be reviewed by the financing institution and from that information it will be determined if you need a co-signer or not, even if you have enough income to make the payments. Showing the bank that you have enough income alone will not satisify them. For that amount of $10 - 15k, they will probably want a co-signer to back up the loan in case something happens and you cant make the payments. requirements for a co-signer is entirely based on the information from your credit report, and your debt - to - income ratio, (depending on the lending company) and the length of time you have been on your job. Now another note, If you are approved without a co-signer, your interest rate will possibily be astronomical, thus, higher monthly payments. It would porbably be in your best interest to have a co - signer. A bit of advice to pass along to you, stay away from the small owned dealers that say they can finance for you on the spot, what they dont tell you is the blistering interest rate that you will paying. Also stay away from online lenders, some of them may not be licensed to do business in your state. A long distance loan on a car is not a very wise way to do business. Stay local on your financial institution. Good luck to you and I hope you are able to get the car that you want.

Answer 3

of course you can. the real question is do you have a steady job making enough money to finance a car for 15 grand. that is what the bank will be asking themselves. it might be easier to buy a newer car. meaning no more than a few years old. the easiest way is to just go to a dealer and find out or contact your bank. with little credit history make sure you are expecting the interest rate to be a little high.

Answer 4

I believe you can as long as you can show enough income to satisfy the bank. And they will only loan so much on a car, depending on the book value. Talk to your banker or your parents banker.