How old do you have to be to own a car?

For many kids, owning their first car ranks as one of the most exciting parts of growing up. A car means more freedom than ever before, but it also comes with a lot of responsibility.

That responsibility makes a lot of people wonder, “How old do you have to be to buy a car?” Between school, jobs, extracurricular activities, and hanging out with friends, it’s easy to see why teens are anxious to get behind the wheel.

Unfortunately, it can be very difficult for a minor to purchase their own car. Not only do teens need help purchasing a car, they will also need assistance with either purchasing liability auto insurance, which is required in most states.

Because of the difficulty, most teens need to wait until they’re 18 before they can legally buy a car.

So, how old do you have to be to own a car? One of the vital components of owning a car is having a car insurance policy. If you’re ready for car ownership, enter your ZIP code into our free tool to see what insurance quotes might look like for you.

Can a minor own a car?

First, a distinction: buying and owning a car are two separate things.

Minors can own a car, but buying a car can be incredibly difficult. Of course, it depends on the state, but ownership of the car is little more than a name on the title. In some states, an infant can be listed as the owner of a vehicle.

This means that you can purchase a car for a teen as a gift and have the title in their name the second they’re ready to drive. However, there are age requirements for registering a car.

How old do you have to be to register a car?

When you register a car, you’re entering your vehicle into your state’s tax office. When your car is registered, it’s been verified as street safe.

Like the rules around owning a car, the age required to register a car depends on the state you live in. Most states allow you to register a car at age 18, though there are some exceptions. For example, Nebraska and Alabama have set the age at 19.

So, why can a minor be on the title of a car but not on the registration? Registering a car means you’ve paid your taxes on the vehicle and that you have your state’s minimum requirements for insurance.

Insurance is where teens run into trouble. Insurance is a legally binding contract between the driver and the company. Since minors can’t be held to a contract, most insurance companies won’t offer them a policy.

When a minor wants to own a car, a parent or guardian will likely need to get involved.

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How does a minor get insurance?

Minors can apply for insurance and have a policy on their own car, but since it’s a contract, it will require a parent or guardian’s signature to take effect.

While a minor can get a policy of their own with this signature, it will be much cheaper to join a parent or guardian’s policy. Teens are inexperienced drivers, which means that car insurance companies consider them high-risk drivers. Some of the highest rates for insurance apply to teens.

Teen insurance

As you can see, teens pay much higher prices than drivers with more experience.

How can teens save money on insurance?

Whether they are on their own policy or a parent’s, there are several ways a teen can save money on insurance.

Most insurance companies offer discounts for young people. If you’re unsure about what your insurance company offers, you should ask your agent.

Teen insurance discounts

To save money, it’s vital that you take advantage of as many discounts as you can. For example, the good student discount can save teens and parents up to 36% on their monthly bill.

Can a 16-year-old buy a car?

Once again, teens run into the problem of legal contracts when it comes to buying a car. Lenders won’t give a minor a loan for a car because that loan is a binding contract. Wondering, “Can you buy a car at 17?” the answer is still no.

Since a minor can’t be held legally accountable for the terms, a dealership would have no choice but to accept the vehicle back and return their money if a minor decided they no longer wanted the car.

All the risk of the loan is on the lender. That’s why you won’t find lenders that are willing to work with minors.

Even if you work a full-time job, you won’t be able to purchase a brand-new car until you’re 18. You can fund the purchase of your car, of course, but the loan will have to be in a parent’s name. Your parent or guardian can cosign a loan for you to mitigate the risk the lender has to take.

Can you buy a car at 16 with cash?

Yes — from either a private seller or a used car dealer, you can purchase a car if you’ve saved the money. You will still run into problems with registration and insurance, but you can technically buy the car.

So, at what age can you buy a car? As soon as you are legally an adult — 18 in most states — and you can be held legally accountable for any contract you sign, you’ll be ready to purchase your own car.

If you own a car, it’s essential that you get your state’s minimum coverage. While minimum coverage varies by state, any insurance company you contact will know exactly what you need.

Can emancipated minors buy a car?

Emancipated minors are minors that have legal guardianship of themselves. These are teens that have been granted adult responsibilities. Emancipation allows them to rent an apartment, choose medical care, and sign up for school.

As an emancipated minor, you still have to attend school. You also can’t get married without your parent or guardian’s permission, and you’ll go to juvenile detention if you break the law.

There are three common ways you can be emancipated:

• Marriage with your parent’s permission
• Enlisting in the military with your parent’s permission
• An order from a judge

As an emancipated minor, you can buy a car, register it, and purchase an insurance policy in your own name. You can be legally held to a contract, so a lender will be willing to work with you.

Find the best insurance for teen drivers

Getting your first car should be a time of excitement and joy, but you can quickly get bogged down in the technicalities of ownership. A parent or guardian can make the process of getting a teen behind the wheel of a car much easier by purchasing the car or cosigning a loan.

Now that you know how old you have to be to own a car, your next step is to find insurance. Enter your ZIP code into our free tool today when you’re ready to see what quotes might look like for you.

1. https://www.ncsl.org/transportation/vehicle-registration-fees-by-state

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Case Studies: Age Requirements for Car Ownership

Case Study 1: Minimum Driving Age

John is a teenager who just obtained his driver’s license at the age of 16. In his jurisdiction, the minimum age to hold a driver’s license and own a car is 16. John’s parents decide to gift him a used car as a birthday present, enabling him to have his own vehicle.

Case Study 2: Legal Age of Majority

Sarah recently turned 18 and reached the legal age of majority in her jurisdiction. At 18, individuals in her area are considered adults and can own a car in their own name. Sarah purchases a car using her own savings and registers it under her name, assuming full ownership and responsibility.

Case Study 3: Parental Consent for Minors

Mike is 15 years old and has a keen interest in cars. In his jurisdiction, individuals under 18 require parental consent to own a car. Mike’s parents recognize his enthusiasm and agree to co-own a vehicle with him until he reaches the legal age of ownership. They provide guidance and oversee the registration process until Mike turns 18.

Case Study 4: Age and Financing Options

Samantha is a young professional who recently graduated from college and secured a stable job. She decides to purchase her first car, but due to limited savings, she explores financing options. In her jurisdiction, the minimum age to enter into a legal contract, including car financing, is 18. Samantha qualifies for an auto loan and becomes the sole owner of the car.

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