My sixteen year old son has a job and is interested in getting a car. Do banks make car loans to minors?
In some states, a loan to a minor for the purchase of a vehicle is an enforceable contract because the law specifically creates an exception to the usual rule that a minor can't be bound to a contract. In those states, a lender may be willing to make a loan to a 16-year old. In many such cases, however, the lender will require a co-signer with established credit, because motor vehicles are notorious for losing value quickly, leaving a vehicle loan at least partly unsecured.
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In some states, a loan to a minor for the purchase of a vehicle is an enforceable contract because the law specifically creates an exception to the usual rule that a minor can't be bound to a contract. In those states, a lender may be willing to make a loan to a 16-year old. In many such cases, however, the lender will require a co-signer with established credit, because motor vehicles are notorious for losing value quickly, leaving a vehicle loan at least partly unsecured.
