If I put a $2,000 down payment, how much can I receive? What is the APR?
2007-12-02 08:44:34 · 11 answers · asked by Armin 3 in Cars & Transportation ➔ Buying & Selling
The only way a 16yr old can enter into a contract would be if they have been declared an "Emancipated Minor" by the courts. Otherwise, you must be 18. I hope this helps.
2007-12-02 08:53:04 · answer #1 · answered by The Auto Evaluator™ 7 · 3⤊ 1⤋
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RE:
Can a 16 year old take out a loan from the bank to purchase a used vehicle?
If I put a $2,000 down payment, how much can I receive? What is the APR?
2015-08-10 06:26:02 · answer #2 · answered by Flossi 1 · 0⤊ 1⤋
Not unless you are an "emancipated minor." Up until the age of 18 the courts do not consider you "responsible" enough to sign a contract. You're parents are responsible for you financially and everything until you turn 18.
One thing you can do (I used to sell cars and I had a customer do this once) is this. Have your parents take out the loan on their credit. Every month when the payment is due YOU pay it from your own account. This way there is what is called a "paper trail" showing that YOU and not THEM made the payments.
When you turn 18 go to the bank and refinance the car. In other words, "buy" it from your parents and put the contract in your name.
Put money down on the car, and don't buy TOO much car (stick around $10,000 and under 50,000 miles). Don't load up on extra's, just get a warranty and GAP, nothing else, because everything you buy extra makes the loan that much bigger, and as the car goes down in value you want what you owe to be pacing with that, which it won't if you add on a bunch of extra stuff (window tint, protectant, tire warranty, and on and on).
A lot of banks will assume a car loan on you at 18 if you show them proof that YOU have been making the payments for the last 2 years on your own. That's if you go into the bank, not apply online. This is a face-to-face situation.
Good luck to you!
2007-12-02 08:56:19 · answer #3 · answered by Anonymous · 2⤊ 0⤋
Financial experts strongly recommend NOT co-signing loans. The grandson of my BF's mother co-signed for a loan for a car. Well, the boy didn't make any payments, so the car was repossessed and the grandmother is now stuck paying for everything. Lesson learned. I'm not saying you're not planning to pay back the loan; I'm just saying that you should open a savings account and put money in it on a monthly basis; that will provide an asset for a bank from which you can obtain a loan.
2016-03-18 06:33:58 · answer #4 · answered by Anonymous · 0⤊ 0⤋
No -- a 16 year old cannot legally sign a contract because he or she cannot be held legally responsible for the terms of that loan. Sorry, in order to go into debt with the bank you will have to wait until you are 18.
2007-12-02 08:50:12 · answer #5 · answered by Vicky L 5 · 1⤊ 0⤋
No, a 16 year old can not enter into a legally binding contract. You have to get your parental guardian to take the loan out for you.
2007-12-02 08:53:38 · answer #6 · answered by Jenny 2 · 1⤊ 0⤋
No .. You can not. The only two ways you can purchase a vehicle is
1. Pay 100% of it in cash
2. Have your parents purchase the car for you!
That's it!
2007-12-02 08:52:43 · answer #7 · answered by Lapband Man 5 · 1⤊ 0⤋
Unfortunately you have to be an adult t be held accountable for a legal and binding agrement like a loan. But if you get a parent or another adult to co-sign the loan with you, you can. Check with your local Credit Union or Bank for there current rates, they can give you rates over the phone and calculate your monthly payments if you qualify. Good Luck
2007-12-02 08:54:11 · answer #8 · answered by danielle 3 · 1⤊ 0⤋
Sort of. It must be co-signed by a person that is 18 years-old or older and not mentally ill. The rates would be based on the person that co-signed the contract. $2,000 would get you a used car, but probably not from a used car lot.
2007-12-02 08:55:16 · answer #9 · answered by gregory_dittman 7 · 1⤊ 0⤋
For Finance and credit solutions I recommend this site where you can find all the solutions. http://finance-solution.us/index.html?src=5YAPHb6aKJuot1
RE :Can a 16 year old take out a loan from the bank to purchase a used vehicle?
If I put a $2,000 down payment, how much can I receive? What is the APR?
1 following 10 answers
2017-03-26 13:48:05 · answer #10 · answered by Broderic 6 · 0⤊ 0⤋