"How much money should I ask for when applying for a loan for a $25,000 car? "

"The kind of car I am looking to buy is in the $25,000 range. I haven’t found the exact car I want to buy yet, but I do want to get a loan before going to the dealership. How do I know how much to apply for?

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Answer
“You should talk with your lender and see how much they will pre-approve you for based on factors like your income and credit score. Once you know that number, you can go to a dealership and shop for cars in that price range.
But whatever you do, do not tell the dealership how much you are pre-approved for or how much you are planning on spending.
After finding the right car for your budget and negotiating the best final asking price, you can contact your lender and finalize the loan that you were pre-approved for. “
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Johnny Puckett
Answered on May 25, 2021
Johnny Puckett is a freelance writer and automotive expert. He has contributed content to a number of some of the largest online publications, aftermarket automotive manufacturers’ sites, and automotive informational sites. His experience in the automotive and information fields informs his writing at Jerry. His automotive interests bleed into his free time, where he enjoys modifying his favorite cars and woodworking.
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