If you’re a young adult, having a vehicle of your own is cool. If you’re a parent, getting your kid a car can help you save the time of picking up and dropping them off every time! However, how old do you have to be to actually buy a car? Here’s a quick lowdown.
If you’re someone who’s always on the move – either for work or study – cars are an essential possession to have. This is true, especially between the years of 15-22, when young adults are zipping across town for school, college, extracurriculars, or jobs! Having your own vehicle can help you reach everywhere in a jiffy – but can you own a car if you’re a minor?
Long story short: You need to be above 18 years in most states to be able to buy a car on your own. However, some states allow minors to buy cars with a co-signer. Others won’t let minors buy cars but will let them title the car in their name.
What is the legal age to own a car?
In all 50 states of America, you have to be over the age of 18 to legally buy a car and apply for an auto loan. The reason is that buying a vehicle involves several contracts and documents that are legally binding only if you are above the ‘age of majority’ – which is 18 or above in most states.
While 47 states have 18 years as the age of majority, two states (Alabama and Nebraska) have set it as 19, and 1 state (Mississippi) has it set at 21.
At what age can you buy a car from a dealership?
You can only buy a car from a dealership if you are older than 18 years.
Purchasing any vehicle requires you to sign a lot of paperwork, most of which are contracts that need to be enforceable in a court of law. Since most states do not recognize people below 18 as adults, you will have trouble finding an auto loan lender, getting auto insurance, and other things needed for a car.
However, once you turn 18, you can buy a car from a dealership – even if you don’t have a credit history. You can either buy it using cash or get an auto loan with a parent as your co-signer.
Can a 17-year-old buy a car from a private seller?
Even if you find a private seller or plan to buy a used car as a 17-year-old, you will face several hurdles when purchasing the vehicle.
- Lenders will not be willing to finance your purchase unless you turn 18; otherwise, they face the risk of the contract being null and void.
- Even if you want to buy a used car from a private party using cash, you will still have to register the vehicle and title it in your name. Very few states allow minors to own property or vehicles, so you will have to first register it in an adult’s name until you turn 18.
Can a 16-year-old own a car?
Technically, a 16-year-old cannot own a car. This is because you cannot get an auto loan unless you are 18 or older at the time of application.
If they have enough cash with them, they can buy a car from a private seller – but very few states allow minors to register and title the car in their name. They will have to register the vehicle in an adult’s name and then transfer it to themselves once they turn 18. However, some states, like Florida, Arizona, Texas, and California, allow minors to register car titles in their names.
Can a teenager get their own car insurance policy?
A car insurance policy is a legal contract, which means you need to be 18 or above for it to be enforceable. However, some states and lenders allow 16-year-olds to purchase their own car insurance policies for a higher premium.
A safer option would be to add the teenager to their parents’ or legal guardians’ car insurance policy. This will be cheaper than paying for a separate policy until they turn 18.
There are certain exceptions to this rule – emancipated minors can typically be considered as adults even before they reach the age of 18. They are individuals who are legally responsible for themselves even before they turn 18. This includes:
- Persons enlisted in the military
- Married individuals
- Minors who have been emancipated by a court order
Renée Martin is a travel and car expert who focuses on road and air travel in the U.S. For the past 6 years, she’s been helping make driving and trip planning easier and budget-friendly for everyday travelers.
