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That said, a teen car loan can be a powerful way to begin building good credit history at an early age, especially if all of the payments are made on time, every time. Auto loans for teens 3 tips the approval tips for car loans for teens are similar in many ways to car loans for people with no credit. If you want to get behind the wheel of your own car but you cant qualify for an auto loan or youre under 18, here are a few alternatives to consider. But you could work until you save up enough money to pay cash for your vehicle. When you turn 18, transportation suddenly becomes much more important than it ever has been. Going to work or college requires a dependable set of wheels.   the car must be in the parents name, as must the registration, title, tags, and insurance. When the child becomes 18, the parents can sell the car to himher to change ownership. If financing is involved, the teen could get a conventional car loan from a bank or credit union, although without a credit history, parents would have to co.   car loans are a big responsibility and in addition to making regular payments on a car loan, your teen will also be responsible for maintaining the vehicle in working order and paying for insurance. Make sure you have an honest discussion with your teen before they apply for a car loan.   if you need to get a loan for the car, and your teen is under 18, youll be legally responsible for the payments, since a minor cant sign a binding contract. At 18, they may be eligible for a loan but could have trouble getting one with favorable terms if they have little to no credit history.   generally, car loan lenders qualify borrowers using their credit history and score. Since your 18 years old and still starting to build your credit, you may have trouble meeting their requirements.   when searching for a car loan for a teenager, there are important decisions to make. Considering the depreciation value of new vehicles, it is best to have a new teen driver purchase a used vehicle. The next essential step in finding a loan for a teen driver is to identify a cosigner for the auto loan. If your teenager is buying the car in his or her name, chances are they do not have established credit. This is the single biggest hurdle to being approved for a teen auto loan. The young applicant will have to show that he or she has steady income and can make the payments.

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