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Home >> Lending >> Vehicle Loans
Seventeen: Wants Car, No Money
I am seventeen and I am trying to buy my first car, but I do not have that much money saved, so I need a loan. The thing is, my parents are in bankruptcy. Is there any chance that I can get a loan from a bank or credit union even though I am only seventeen? Are there any alternatives I can pursue?
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 Unless there are some special legal circumstances, you are a minor at seventeen, and are not of the age where you are able to enter into a legally binding contract. The best thing you could do would be to get/have a job and save money. With your parents current situation, they shouldn't and may well be prohibited from entering into any new debt without the bankruptcy court's permission, and credible lenders wouldn't allow them to cosign for you anyway.
Save money for a down payment or better yet, for the entire purchase price of a used car or motorcycle. This would help you so that when you turn eighteen, you will have been employed for a period of time and would be a better risk for a loan should you decide to borrow. The amount of your down payment (more is better) will also reassure the lender that you have a real vested interest in the collateral you purchase, and will show that you have demonstrated the ability to save and now repay a loan.
Remember that with a vehicle loan comes insurance. Your lender will want full coverage, so you also need to factor that cost into what you can afford.
Published on BankingQuestions.com 10/30/08
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