Loan for Down
Payment on a Car

Need Money Down for an Auto Loan

Question:

Where can I find a loan for down payment on a car? I finally got approved with one of the local dealerships and they have a car that works for my credit and the negative equity from my trade in, but the dealer says I need money down for an auto loan.

I have $1500 down, but need another $1000 in order for the deal to work. My credit isn't the best and my score is 586. The car I am trading is a piece of junk and I'm scared it will break down if I'm not able to trade out of it. Any suggestions?

Thanks,
Nick

Answer:

Hi Nick,

I'm very familiar with the situation you are in and it's become quite a bit more common to need down payment for an auto loan these days...Especially with negative equity.

Based on your credit score and the fact that you say your credit is not the best you are probably not going to get the greatest terms for your personal loan for down payment, but in this case (and you're not borrowing a whole lot) it may be worth it.

One of the better online sources I've found is 100DayLoans.com. They seem to offer much better terms than the traditional "payday" loans you'll find online. They also give you up to 100 days to pay it back without any penalties.

You could also try a local credit union, but realistically with a 586 credit score you are more than likely not going to get approved. Most traditional lenders only give personal loans to customers with excellent credit, because they have no collateral to secure the loan.

Please don't hesitate to contact me if you have more questions about your personal loan or any other car buying questions.

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