Anyone can own a car. But buying and registering a car can be challenging before you become an adult because contracts require adult signatories. In this guide, learn about the challenges young drivers face in buying and registering a car, and how to overcome them.
- Car ownership is complex when a minor is involved.
- It can be challenging to obtain financing and to register a car before you turn 18.
- Having a parent co-sign for your loan is one way to enhance your odds of being approved for a car loan if you are younger than 18.
At what age can a teen own a car?
In most cases, you must be 18 to register a car in your name. While it’s possible to title a vehicle in a teen’s name, it must be registered and insured to operate it on the street.
A motor vehicle title, also referred to as a “pink slip,” is a legal form that establishes the legal owner of a vehicle. A title shows who legally owns the car. Many states allow teens to own vehicles by listing their names on car titles.
Registration validates that your vehicle has been inspected and registered, deemed roadworthy and the taxes paid. Finally, the registration process verifies that the car is carrying the required amount of insurance, which is the part that can make registering a vehicle in a teen’s name problematic.
To legally sign an insurance policy or other contract, a person must be at the “age of majority,” the age when a child legally becomes an adult. The age of majority is at least 18, but it varies by state. Once a person reaches the age of majority, they can consent to medical treatment, sign a contract, vote and join the military.
Check out our detailed guide on the difference between title and registration.
How old must you be to have a car titled in your name?
State laws vary regarding the age at which someone can title a car in their name. The best way to determine the requirements is to contact your state’s Department of Motor Vehicles for details.
Here are a few state examples to highlight the legal differences:
Texas
Texas doesn’t have an age restriction for individuals wanting to be recorded on the title and registration as vehicle owners. However, insurance companies may impose age restrictions on insured drivers.
North Carolina
North Carolina is similar to Texas in that the state does not set a minimum age limit regarding vehicle ownership. A car can be titled in a minor’s name as long as the owner can sign their name on the title application.
However, a license plate cannot be issued without proof of liability insurance on the vehicle, and insurance companies rarely write policies for minors. This means that under most circumstances, you must have a parent or guardian sign your insurance contract if you are younger than 18.
Ohio
The Ohio Bureau of Motor Vehicles, or BMV, allows teens to title a car but their parents must sign a form before that happens. Suppose a driver younger than 18 wants to title a vehicle. In that case, their parent or legal guardian must complete a minor consent form and accompany the minor when they appear in front of the Clerk of Courts title office to have a vehicle titled in a minor’s name.
Check out our detailed guide to the best and cheapest cars for new drivers.
Can a teenager get an auto insurance policy?
When a teen drives a parent-owned car, adding a teen driver to the parent’s policy is easier and much cheaper. It’s more complicated if the teen owns the vehicle.
If your state allows a teenager to own and register a car in their name, the parent will need to check with their insurance carrier to see if they could place the teen’s vehicle on their policy. Technically, the parents would not have an insurable interest in the vehicle, so the insurance company may refuse to add the teen’s car to their policy.
This means the vehicle’s insurance must be in the teen’s name, which would pose a problem since minors cannot enter into contracts. Your best bet is to contact insurance companies regarding their guidelines regarding a minor obtaining their auto insurance policy.
How old do you have to be to own a car?
Technically, there is no minimum legal age for owning a car. Anyone of any age can own a vehicle.
However, to register a vehicle in most states, you must be 18 years old. If you are a minor, you also are likely to have trouble securing financing for a vehicle unless an parent or other adult cosigns the loan.
Emancipated minors can own cars in their names
As with most things, there is an exception to this rule. Emancipated minors can buy, register and insure a vehicle in their own name. Emancipation means that legally, a juvenile is freed from the control of their parents or guardian, and the parents are freed from the responsibility of the child.
There are several ways that a minor can be emancipated, but the most common methods are:
- Minor enlisted in the military: Enlisting as a minor requires parental consent.
- Getting married: In most states, this requires parental consent.
- A court order from a judge: This doesn’t require parental consent.
Once emancipated, a minor can legally enter into a contract, so age is no longer relevant. An emancipated minor can legally sign a purchase agreement for a car and an insurance policy. Emancipation laws vary by state.
Can a 16-year-old own a car?
Car ownership can be complex when a minor is involved. Minors can’t sign legal documents like car lease/liens and car insurance policies.
While many states have no issue with a 16-year-old owning a car and titling it in their name, insurance companies are often reluctant to enter into a contract (an insurance policy is a contract) with a minor, which means the teen cannot legally drive the car out on the street.
Check out expert recommendations on car insurance for a 16-year-old
Can a 16-year-old or 17-year-old buy a car?
While each state is different, a minor generally cannot enter into a contract, making it very difficult to be the sole owner of a motor vehicle. A minor typically cannot own property – their parents technically own that property until the child becomes an adult. In many states, a parent will have to cosign on a loan for a car, and a minor can buy a car, but their parent will be the legal owner.
Minors cannot enter into a contract, so while a minor can sign a contract legally, they have the right to honor the deal or void the contract before they reach the age of 18. This means that a minor can void a contract, which makes car dealers and insurance companies wary of doing business with someone younger than 18.
Because of contract law, a car dealer selling to a 17-year-old will typically request that a parent or guardian sign the bill of sale and other contractual paperwork, which binds the adult who signed the contract to the contract’s terms.
The same holds for car insurance companies. They don’t want to take the risk that a teen could decide to void their insurance contract (policy) with them, so they will request that a teen have a parent or guardian sign on the policy.
Can a 17-year-old buy a car from a private seller?
Purchasing a vehicle from a private party is the same as buying it from a dealer, so all the same rules apply. If your state allows a vehicle to be titled in a minor’s name, they can buy it from a private party.
The problem will arise when it is time to get on the road. To register the vehicle, you must provide proof of insurance. Most insurance companies will not write a policy for a minor unless a parent or guardian is also on the policy.
Check out our experts’ recommendations on car insurance for a 17-year-old.
FAQ: How old must you be to buy a car?
I am 16 years old and have a job. Can I buy a car with cash on my own?
You can purchase the car if your state permits minors to title vehicles. However, you will still need a parent or guardian in most states to secure vehicle registration and auto insurance.
Can a 17-year-old get a loan to purchase a car from a dealership?
This depends on the lender, but generally, you will not be able to get a loan as a minor. Even if you find a lender extending loans to minors, they will require an adult co-signer. The same laws will apply whether you purchase from a dealership or a private party.
Can I transfer a car title to my 17-year-old?
In most states, no. Title and registration must be done under the name of someone who is considered a legal adult. It is best to leave the vehicle in your name until your child reaches your state’s age of majority.
– Mark Vallet contributed to this story.
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