Hi guys, I'm new to this site. I really like it. I was hoping someone could help me.

I'm 16 years old. I work full-time. I want to purchase a new 2004 Superduty. I make sufficent money to qualify for a loan for the truck I want. I'm just not sure if I am old enough to get a loan. Does anyone know the age requirements for auto loans??

If I'm too young, can I get a loan with a co-signer?? I really appreciate the help. I dont want to walk into a dealership and not be able to get financed. Thanks in advance.

 

Hey 6.0.
I not sure but i think you need to be 18 to get a bank to do a loan contract. Talk with your parents, or guardian. I am sure you will need a adult co-signer. It would not be a bad thing to talk with a dealer, so that you can have the informtion at hand to present to the folks at the right time. This would show them you have done some leg work for onething, and it might get you a better price on the truck if you talk with several dealerships. Some dealerships used to have a first time new car buyer program with special interest and down payment options. Good luck let us know what happens.

 

Thanks for the reply. I talked with my parents. The reason I was hoping I could get financed is there credit is not that great. Going through them I will likely be paying a 19 or 20 percent interest rate.

I've researched this truck for many months now. I figure I can get the truck I want for around $32,000. I have $8500 to put as a down payment. SO that is not a problem. REally, I would like to have a payment under $700.

IF anyone knows for sure how old you need to be to get financed, I would appreciate it if you could let me know. Thanks.

 

What about insurance? A 16 yr. old with a $32,000 truck? They are gonna bleed you dry with insurance payments. I think its great you are trying to buy your own truck, but do you really need one that expensive? Maybe you could use the $8,500 and get something less expensive? Again, not trying to discourge you, but is your job secure enough that you could afford a $700 mo. payment for the next 3-5 yrs? Just some things to consider, good luck and let us know what happens.

 

Triton, I appreciate your response. I already considered insurance and other expenses. Yes, I can afford that $700 payment. I know that its probably hard for you or most other people to believe that I can actually afford this truck. But, I CAN afford it and I am going to buy it. I just hope I can get financed.

TO tell you the truth in about 8-10 months I will have the cash and be able to fully pay off the $25000. The reason I need to finance instead of wait till i get the cash is I want to order a new 2004. I dont want to purchase a 2005 due to the changes that Ford made to the truck. So, I only have till May 14th to order my truck.

So, if anyone knows the age requirements for getting an auto loan, please let me know. All responses are sincerely appreicated. Thanks

 

You have to be 18, and even at 18 you don't have the credit to buy that kind of truck. I have great credit for a 19 year old and I couldn't get a 8k dollar loan for a snowmobile, even though I had the cash to pay it off (I wanted the credit). You'll need a co-sign and even that might be tough if you're parents have so-so credit. I also think you shouldn't be looking at a $32,000 truck. The depreciation on that thing...wooo man. I don't care what anyone else says, you're going to get in an accident with that truck. Take it from someone a couple years older than you, who used to make 1000 a week, ALWAYS expect the unexpected. Are you going to be able to afford that vehicle if you loose your job? You're credit will be ruined for a long time if you run into that, it is very difficult to re-build bad credit. Save your money, buy a good 10-15k dollar truck. My first truck (red one in my gallery) was crashed 3 times and finally totalled. Not my fault, but, crap happens. Statistics show that people our age get in accidents, it's almost guaranteed. You're going to loose several thousand dollars buyin that new truck off depreciation alone. Good luck in whatever you choose.

 

Buy something alot cheaper.

 

I am quoting business law - "Minors do not always have the maturity, experience, or sophistication needed to enter into contracts with adults. The most prevelant age of majority is 18 years of age for both males and females. Any age below the staturtory age of majority is called the period of minority. To protect minors, the law recognizes the infancy doctrine which gives minors the right to disaffirm (or cancel) most contracts they have entered into with adults."

In other words, without an adult co-signer the bank has no legal recourse to go after you should you default in payment.

 

The question you need to think hard on is not if you can afford the truck, but rather is it the best use of the money. The answer is that it is probably not.

Quote: "TO tell you the truth in about 8-10 months I will have the cash and be able to fully pay off the $25000. The reason I need to finance instead of wait till i get the cash is I want to order a new 2004. I dont want to purchase a 2005 due to the changes that Ford made to the truck. So, I only have till May 14th to order my truck."
If you are determined to get this truck, why not wait until the '05's are out, that '04 will be cheaper then?
Dono

 

Justin, the reason they wouldnt give you an $8k loan for a snowmachine is because to credit companies its classified a "toy" and not a need. The diffrence is that people need cars, financing a motorcycle, atv, dirtbike, snowmachine, etc..is much diffrent from a car heres why. Say you want to buy a $8k snowmachine and come to my finance company, i look at it like this if you sink it in a lake or wreck it i cannot get even a fraction of my investment out of the collateral. Same with cycles they are too easily totalled and then the bank loses $$ on the deal. A car on the other hand isnt used for jumping sand dunes or frozen lake crossing or trying to impress your friends doing a saran wrap / superman seat grab combo. the car is used to go to and from work and to get you around town. plus if repoed it will bring more $$ at auction, or be sold at "repo sales" held by the bank. You do however have a good point when you say you dont have the credit at 18...thats true they look at your history to see if you can pay, your debt to income (DTI) ratio to see if you can afford to pay. Just a heads up for all new credit seekers get yourself a credit card, buy 1-2 things a month and pay it off over a 3 month time period...that will make you look good....also if you get a car make extra payments IE: $20/mo extra....anything extra makes you look good...it shows the bank that you are making an extra effort to pay...they will lend to you more easily then...hope this helps someone out.

-james

 

What do you reckon that truck will be worth in say...Thirty years? You're sixteen years old for crying out loud what do you need with a $32,000 truck? Go talk to someone to help you invest the $8500 you've got now. When you're my age you'll have some real cash on hand to buy a house with. Go talk to some older folks. The way you spend your money now dictates how you will live the rest of your life. Save your money.

 

I hate to tell anyone what to do with their money, but if I had $8500 now and would have another $25k before long, a vehicle is NOT on the shopping list. Not a new one anyway....buy some land or a house, save it, invest it, something that keeps it working for you. If you need a car to get around, buy a cheap one. Insurance is cheaper, tags, taxes are cheaper, and your wallet won't hurt nearly as bad the first time you go to Wal-Mart, come back out and see a shopping cart embedded in the driver's side door (probably not unintentional, either....people do that crap out of spite more than by accident). You're 16, that money can do a LOT more for you later on than a new truck now. Just my opinion....YMMV.

 

I agree with you. At 16, that investment now can mean a lot for a person when they are 30. Spending money on a brand new vehicle at 16 for me was really dumb. (I did it) After my 25th car somewhere around 24 I decided to buy a house. If I had invested my money on rental property early on I could have bought 10 F350's with cash. without the advice, do what you want to do with your money, but know that it is not probably the smartest investment you will make. I use mine as a tow vehicle and have a 1999 Ford Ranger with 196,000 on it that I drive as an every day car.

 

6.0,

Though all the suggestions here about not buying the truck are valid, I understand about having the money and wanting to buy it.

Here is my suggestion.

If you are sure you will have the money in a few months, then go to the dealer with your parents, put a non-refundable $1,000 deposit down on the order, and order what you want. By the time the truck arrives, you will have the money or at least most of it. At the worse with $8500 your parents should qualify for 12% even with the worse credit in the world. Have them preapproved.

I use to order vehicles for people all the time (1980s) with a $100 non-refundable deposit, as long as it was not an oddball vehicle. Most people just wanted a nice loaded vehicle, so it was never a problem. Any dealer that will not order a vehicle with a $1000 non-refundable deposit would be a fool.

Hope that helps.

 

6.0Diesel hasn't replied in over a month. Either he got what he wanted or took the advise of most of use. It would be nice to know how it turned out.....