If you’re 17 and thinking about financing a car, you’re facing some legal and logistical hurdles. Don’t worry, though; financing a vehicle is possible with the right support system in place.

Why can’t you finance a car at 17?

Auto financing is a legal contract, and financial institutions require borrowers to be legal adults (typically 18 or older). A credit history, consistent income, and legal accountability are other factors that financing providers consider. But even if you have a job or good saving habits, you won’t qualify for auto financing on your own because you aren’t considered legally responsible.

How a co-signer can help you get approved

The most common way for you to finance a car is by applying with a co-signer, usually a parent or guardian. In this case, the adult co-signer agrees to take legal and financial responsibility if payments aren’t made. The financing institution evaluates the co-signer’s creditworthiness and income as the basis for approval, rather than yours.

Here’s how it usually works:

• You and your co-signer apply for financing together

• There’s a review of the co-signer's credit history and income

• Both names may appear on the financing documents, but your co-signer holds the legal accountability

If you’re able to find a co-signer, you may still run into legal limitations. In many states, minors cannot legally register or insure a car on their own, even if they paid for it. You’ll likely need the help of a parent or guardian there, too.

What happens when you turn 18?

Once you reach adulthood, you can take over full ownership and responsibility. That means:

• Transferring the title into your name solely

• Applying for auto financing independently (assuming you meet credit and income requirements)

• Securing an insurance policy in your name

The first steps for you and your co-signer

The 15,000 dealerships in Credit Acceptance’s dealer network have experience getting qualified people behind the wheel. If you and your co-signer would like an idea of what you might be able to finance, we have an online pre-qualification tool you can use.