The amount of money you can spend on your car depends solely on different situations as every circumstance are different. In this article, we would be discussing getting a car loan under $10,000.
We would be looking at what you need to have that would qualify you in getting such a loan. Most lenders make use of various attributes they consider credit scores that allow them to determine what qualifies a user for a particular loan or not.
It is said that customers with credit scores less than 600 are generally considered to have bad credit. Below show the standard qualifications for a car loan of under $10,000.
- Must have at least $5000 in liquidity
- A down payment of 10% is required
- The vehicle should be less than 5 years old
- The vehicle is typically required to have a clean title
Must have at least $5000 in liquidity
Having at least $5000 in liquidity improves your chances of getting a loan. This shows that you are serious about getting a loan. It also gives the lender a sense of security knowing you have a sort of collateral that they can use.
A down payment of 10% is required
Making a 10% down payment is usually required when applying for a car loan. It shows your level of commitment to getting such a loan.
The vehicle should be less than 5 years old
When a car is less than 5 years old, it gives the lender a sense of investment, knowing that granting such a car loan to you would make a good investment for you.
The vehicle is typically required to have a clean title
The Car must have a clean title and must be in good condition. It must also have very low mileage.
How to apply for a car loan of under $10,000
Most car loan companies would require you to get approved first before choosing your car, but subprime loan companies, are signed up with special finance dealerships.
This means once you apply, your application is submitted to the assistance of a special finance manager on-site at the dealership, who then sends it to his leading partner.
Once you are approved, you are then told the maximum amount of car payment you qualified for. From there, you choose a car that fits your current situation.
Bottom line is to get approved, you need to meet certain requirements to show the lender that you are dependable, stable, and willing to take your finances seriously.
For more information on knowing the best car for you, check out our article right here.