Have you just turned 17, recently got your licence and are looking to buy a car? For most people, the only way that you can buy a car is by getting a loan from a lender. But at 17, can you do that?
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Shop for Cars has put together a quick guide on buying a car at age 17, your options and if you can get a car loan to buy a car under the age of 18.
Can I get a Car Loan at 17?
The short answer is no. It is illegal for any lender to loan money to someone under the age of 18. This includes car dealerships, personal lenders, and banks.
I know what you are thinking, you are old enough to be able to drive but not olde enough to get a loan. But don’t panic there are ways for 17-year-olds to get their hands on their dream vehicle without having to wait.
Here are a few alternative ways you can buy a car at 17 years of age.
1. Family Loan
Whilst the bank is unable to lend to someone aged 17 years, they can lend to your family members. When it comes to buying a car at aged 17 many people turn to their families to buy the vehicle on their behalf and paying off the debt as you usually would if the debt was under your name.
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This doesn’t even need to be an official loan from a bank or lender, if a parent buys the car for you, depending on your individual situation, you may be able to pay it off weekly and direct to your parents as you would if a lender gave you a loan.
If you are planning to buy a car right as you turn 17, it is important that you discuss with your family beforehand to find out your best options.
2. Buy the Car In Cash
Depending on how much the car you are looking for is, you may be able to pay for the car in cash and not require any loan. This point is not for everyone and is all dependent upon your own individual circumstances.
If you are looking to pay for a car in full it is important that you know beforehand how much you are looking to spend and save that amount prior. By far, the biggest benefit of paying for a car outright is you avoid having to pay interest on any loan amount.
3. Trade in your current vehicle
Most of us learn in the family car or are gifted a hand me down car initially. Another option you can use to buy a car without needing a loan is to trade your current vehicle in for something better!
Take your vehicle to a couple of dealerships and find out how much they will give you for it. The benefit of trading your vehicle in is you will get cash for the trade in which along with some savings may help you purchase your next vehicle outright without needing of a loan.
4. Lease a Car
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An option that is becoming more and more popular in Australia is vehicle leasing. As a 17 year old you do have the option to lease a car for a certain amount of time. As you don’t need a loan to lease a car, all you will need to do is provide your details and be able to pay the weekly/ monthly rental price and you can be on your way.
Leasing a vehicle may be a good option for a limited time until you can get your hands on a loan once you turn 18.
Final Word,
Unfortunately, as a 17-year-old, you do have to wait a year to get a loan to buy a car. In saying that you can still buy a car at age 17 without needing a car loan. The 4 tips mentioned above are a few ways you can buy a car at age 17 in Australia without the need of a car loan.
We hope you enjoyed reading this article. To read more articles like this, please visit the Shop for Cars latest news page here.
About Shop for Cars,
Shop for Cars is Australia’s first car dealership-only online classified. Shop for Cars brings you the best quality new and used vehicles from trusted motor dealers Australia wide. Shop for Cars currently has over 12,500 cars listed for sale all from licensed Motor Vehicle Dealers ONLY.
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DISCLAIMER: This is all based on opinion please research and consult with all relevant parties to make the best buying decision.
Source: https://tholansonnha.com
Category: Finance
