Can a minor legally buy a car from a private seller?

A minor can pay for a car, but the contract is generally voidable, which means the minor can cancel it and ask for the money back. Many states also require a parent or guardian's signature before titling or registering a car to someone under 18.

How do I safely sell a car to a teenager?

Make the parent or guardian the buyer, or a co-buyer with the teen, on the bill of sale and the title. The adult signs, and the contract is with someone who cannot cancel it on the grounds of age.

Selling a car to a minor: why the contract is risky and how to do it right

Q: What happens if a minor cancels a car purchase?

The minor usually must return the car, and the seller usually must return the money. States differ on whether the seller can deduct for damage or use. That uncertainty is why sellers prefer an adult buyer on the paperwork.

Selling a car to a minor: why the contract is risky and how to do it right

A 17-year-old saved up for their first car and has the cash ready. Nothing stops you from taking it. The problem shows up later: in most states a minor can back out of a contract, and that can mean returning the money for a car that has been driven, dented, or wrecked.

Why a minor's contract is different

In nearly every state, a contract signed by a minor is voidable by the minor. The young buyer can usually cancel it, before turning adult age or within a reasonable time after, and ask for the money back. The adult seller can't cancel on the same grounds. There's a narrow exception for "necessaries" like food and shelter, and a car usually doesn't qualify.

Age of majority

In most states a person becomes an adult for contracts at 18. A few states set it higher: Alabama and Nebraska use 19, and Mississippi uses 21. A buyer who looks grown may still be a minor where you live, so check ID when the buyer is young.

Create a Vehicle Bill of Sale ($5) Can a Minor Sign a Bill of Sale?

What cancellation looks like

If a minor backs out, the usual result is that the car comes back and the money goes back. States differ on whether the seller can deduct for damage or use, and on what happens if the car was wrecked. A seller can end up refunding most of the price for a car worth much less. That's the risk you're taking on.

The title and registration problem

Many states won't title or register a car to a minor without a parent or guardian signing, and insurers often want a parent on the policy. Even when the sale goes smoothly, the teen may not be able to put the car in their name alone.

The safer setup

Parent as buyer. The parent signs the bill of sale and takes the title. The teen drives it.
Parent and teen as co-buyers. Both names on the bill of sale and the title, with the parent signing.
Either way, write the full legal names of everyone on the bill of sale. See what to include and two names on a title.

Sell as-is in writing, take secure payment, and file your release of liability. See selling as-is and the release of liability. For the signing question, see can a minor sign a bill of sale.

Create Your Vehicle Bill of Sale ($5) →