How would a 17 year old purchase a car?

Question

The car is about $20000. What would be the steps you would take (insurance, loans, etc.)? Living with parents, part time job making 7.50/hour.

Answer 1

You should buy a cheaper car, say around $5000. That would make a lot more sense. A 20K car at 5% interest rate for 60 months (five years), would be $377/month. Insurance for a 17 year old, maybe $200? 7.50/hour 20 hours/week is about $625/month. You'd have about $50 bucks left to buy everything else you'd need to live on that your parents didn't provide for the next five years. Essentially you'd be working for your car, nothing else. Two choices: make more money or buy less car.

Answer 2

Since you're so young and probably have no credit it'd be hard to find a loan, if you wanna try go to credit unions. You'll probably end up financing through the dealership, which is not the best but they except everyone. The only thing you reallly need would be a cosigner. I don't know if you actually need one but most likely if you're under 18. Get your mom/dad or grandparents or someone you know with good credit to go with you to buy the car and have them cosign. I'm young too and have average credit and my interest rate through the dealer was going to be 20% w/out a cosigner, with it's like 9% so it makes a big difference on what you're paying. Also, if you don't already have car insurence, try calling places ahead of time to see what they can quote you. You may want to see if you could join on your parents, it's cheaper that way. But keep in mind insurence by yourself so young will be like $300/mo. and your car payments will be somewhere b/t like $350-500 depending on the total price after taxes n stuff. Maybe you should look at a cheaper car or a used one...It's a lot of time and money so be prepared for that. Make sure you have some sort of downpayment too, it'll help reduce the payments-say $200-400 would be alright. I just bought my car and before I did I did a lot of research on new or used, what year, what style... Try http://www.edmunds.com/ and look at Car Reviews and Tips and Advice, just look over everything here it'll help a lot trust me! Good Luck with everything!

Answer 3

That is a lot of money to spend on a car. I would strongly suggest looking at something much cheaper (say the $6,000-12,000 range). Don't think you can't get a nice car for that...a honda civic (2003 and under) goes for that. You can also get many other model cars before about 2004 for that price. Second, I would suggest talking to your parents about taking out a loan with their credit that you could pay back. Your age makes it illegal for you to do it personally. Thirdly, I would suggest asking your parents to add you to their car insurance (try an umbrella policy) as long as you live with them and then giving them some each month. This is cheaper all around. At your age, a car should not be what you save money for (instead think about higher education, a house of your own, etc). I suggest looking through the websites below for more information. Good luck.

Answer 4

First of all you can not buy a car until you reach the age of majority (usually 18). As a minor you cannot legally contract for anything other than food, clothing, or shelter.

You also have set your sights way too high in looking at cars. $20,000 cars are way out of your range, with your limited income! You would need to put over $15,000 down, just to get the payment to an area the you may be able to handle, and if you have that much free cash, you should be looking for something you do not need to finance!

Insurance is going to be very expensive also.

Consider getting an older vehicle that you can pay cash for, with money you have saved. Spend your time getting an education, and them you can get a good job and afford the things you want!!

Good luck!!!

Answer 5

check to see if it is possible first with your state. i am a sales manager for a dealership in California and it is illegal to have a person under 18 on any type of legal documents. if in your state it is ok to have a minor on a contract than your next concern will be to get financed. being a part time job and not legally being able to held accountable for credit until the age of 18 anyways, every bank will expect a parent or guardian to co sign the loan in order to get the financing. the 17 year old would not be able to qualify in any way on there own. as far as insurance that would be the easiest thing. being a minor living with family the minor does not have to have their name on the contract in order to get insurance. the insurance company would put who evers name on the contract and than the minors name as secondary. hope all this works for you. start with seeing if the 17 year old can even be on the contract legally cause if not than everything will have to be under a helpful and willing guardian/ parent

Answer 6

A dad speaking the following... been there achieved that with 17 year old drivers. i'd not in any respect placed a clean automobile contained in the fingers of a clean motive force. They make too many mistakes, and forget too many stuff, and performance a quite damned good chance of stacking their experience up. i'd not in any respect placed a short automobile contained in the fingers of a 17 year old motive force, a minimum of not on the line (see the "stacking up" remark above). i have had good luck with the GM A body automobiles - the Pontiac 6000, Buick Century, Olds Cutlass. they are undemanding to locate, and may want to be bought all day lengthy for $1000. The parts are very lower priced considering that GM outfitted a bazillion of them. each and every mechanic is conventional with a thanks to artwork on them. they are sluggish (i wouldn't anticipate them to ever hit ninety mph), deal with quite nicely, and are particularly lower priced to insure. And, they get 30 mph. If the 17 year old needs a clean Mustang (sporty automobile) then this automobile is a good iciness automobile.

Answer 7

You would have to pay cash. You are not considered an adult until you are 18 years old and you can't sign a contract because it is not binding. Good luck with insurance at your age also. It's not easy

Answer 8

20000 bucks would be outta reach. Buy something cheaper.....much cheaper, and then as you get the extra cash, you can put it into the car part by part. ie- stereo, paint etc...

Answer 9

job...it'll take a while though...if you can borrow money that's cool but i don't know if it's worth it just to get a car right now while becoming in debt