Is it likely that a 19-year-old who has no real credit but works part time and lives with parents will be approved for financing a car?

Answer 1

It is most likely that you will have to have a co-signer for the car. From my experience, I worked part-time, lived with my parents, had no real credit. My parents co-signed for the car. I bought my car when I was 18, almost 19. I had just moved out on my own, but didn't own a house, so I already had a rent payment. I hadn't established good long-term credit, but I had a few credit cards I had kept in good standing for almost a year (I got them right when I turned 18), and I kept them at a balance of less than 50% of my credit limit. I got approved without a co-signer. My car was about $11,000. The one I traded in I only got $500 for. I put down $500, and then post-dated a check for $500 (so $1,000 down total). However, at the time I was working a lot. I wasn't in school and had two jobs, so a good source of income. I was denied by Bank of America, but I did end up getting a loan at a 6.2% interest rate with $250 a month payemnts. So yes, it is possible! Even more so if what credit you have established thus far shows no late payments, etc. The only warning I'd give you is to double check the insurance rates for the you are interested in, which I failed to do beforehand. Somehow my insurance ended up being another $250 a month for bare minimum coverage. I almost died. Woops, that was my post above. I don't know what I was thinking. I WAS in school, high school, so my two jobs didn't quite make me full-time eployed. But if you opt for a cheaper car than I did, have a good down payment, and good, steady job you should be good! A dealership will do everything they can to get you qualified!!