 TITLE: How Old Do You Have to Be to Buy a Car? CONTENT: How Old Do You Have to Be to Get an Auto Loan?\n----------------------------------------------\nAn auto loan is a legally binding contract that lays out the financing details of a car purchase. Minors can sign contracts, but they can't be held to the terms of a contract until they reach the \"age of majority\"—which is 18 years old in almost every state. As such, few lenders are willing to extend a loan to a minor, and the ones that do require a co-signer.\nA lender will want to see an established credit history as well, which also presents a roadblock for minors. A minor shouldn't even have a credit report unless they've been added as an authorized user on an account belonging to an adult.\nIf you're an adult with a teen driver at home, one option is to take out the loan in your own name. Once you satisfy your payment plan, you'll be the vehicle's legal owner and can then transfer the title into your adult child's name when they come of age. Your payment activity is reported to the credit bureaus, which means the loan will show up on your credit report.\nCar insurance is another detail to consider. The insurance policy is itself another type of contract, so it presents the same legal hurdle the loan does for minors. One workaround is to add your teen to your own car insurance policy. You can think about taking them off when they turn 18, but they may struggle to find affordable coverage on their own as teens are generally seen as riskier drivers.\nA lack of credit history can also pose a problem since auto insurers in many states can consider your credit-based insurance score when deciding your premium. This is why many parents choose to keep their kids on their car insurance until they have more experience driving and are able to cover their own insurance payments. END