Teen Auto Loans
Help them start strong behind the wheel
Help them start their financial journey
A first vehicle can mean greater independence. It can also create an opportunity to learn about budgeting, monthly payments, and responsible borrowing.
Heritage South’s Teen Auto Loan Program allows eligible teens age 16 and older to apply for an auto loan in their own name with a creditworthy parent or guardian as co-signer. Making payments on time may help the teen begin establishing a positive credit history.
Our Program Details
Available beginning at age 16
Eligible teens can begin applying for the Teen Auto Loan Program once they reach age 16.
The loan is in the teen’s name
The teen is listed as the primary borrower, allowing the loan and payment history to become part of their credit record.
A parent or guardian co-signs
A creditworthy parent or guardian is required to participate as co-signer.
Build credit through responsible payments
Consistent, on-time payments may help the teen establish credit that could support future applications for another vehicle loan, a credit card, or a mortgage.
Our Program at a Glance
-
Minimum age
Minimum age
-
Primary borrower
Primary borrower
-
Co-signer required
Co-signer required
-
Loan purpose
Loan purpose
-
Best if you want
Best if you want
-
How to get started
How to get started
Teen Auto Loan
-
Minimum age
16
-
Primary borrower
Teen
-
Co-signer required
Creditworthy parent or guardian
-
Loan purpose
Purchase an eligible vehicle
-
Best if you want
To help your teen finance a first vehicle while learning responsible borrowing and beginning to establish credit
-
How to get started
Contact a Heritage South lender or visit a branch
Teen Auto Loan Rates at a Glance
|
Term Options |
Annual Percentage Rate (APR) as low as* |
|---|---|
|
* Annual Percentage Rate of these secured Auto Loans depends on the borrower’s credit score, loan term, and age of the vehicle being used as collateral. All loans are subject to credit approval. Maximum financing up to 100% of sticker price or NADA retail value, plus taxes and tags. Application Fee: $50.00 Filing Fees: You will be charged a lien filing fee at the time of an advance if the credit union takes a security interest in your collateral. The amount will be based upon the amount of fee required by state law or for the credit union to secure a lien on your property. Late Payment Fee: A late charge of 5% of your scheduled payment with a minimum of $5.00 will be collected if your payment is received 20 or more days past the due date. |
|
|
Term Options 24 Month, 36 Month, 48 Month, and 60 Month Terms Available |
Annual Percentage Rate (APR) as low as* 8.5% |
Helpful Tips for Teen Drivers
Prepare for more than the monthly payment
Before choosing a vehicle, build a budget that accounts for:
- Auto insurance
- Fuel or charging costs
- Registration and taxes
- Routine maintenance
- Unexpected repairs
- The monthly loan payment
Choosing a dependable vehicle with an affordable total cost can make it easier to keep up with payments and other responsibilities.
Frequently Asked Questions
The Teen Auto Loan Program is available beginning at age 16.
The loan is placed in the teen’s name, with a creditworthy parent or guardian participating as co-signer.
A young borrower is likely to not have enough income or credit history to qualify independently. The co-signer adds their financial and credit information to the application and agrees to repay the loan if the primary borrower does not.
Making the required payments on time may help the teen establish a positive payment history. Late or missed payments may also be reported and could negatively affect both the teen’s and co-signer’s credit.
Not finding what you’re looking for? See all FAQs
Help your teen take the wheel responsibly
Talk with a Heritage South lender about financing their first vehicle and beginning their credit journey.
