Is it possible to get a car loan for $5,000?

I don't have a bunch of cash for a car loan and I'm looking at a car that costs $5,000. Can I get a car loan for this amount?

Answer
Getting a car loan for $5,000 is entirely dependent on the lender. While some may approve loans for such a small amount, others will not.
Most major banks have stipulations surrounding minimum loan amounts, as well as requirements with regard to the age and mileage of the car. Generally speaking, a vehicle can’t have more than 100,000 miles and can’t be over 10 years old.
However, you can try working with a local bank or credit union. They typically have more flexibility and may be willing to work with you, especially if you have a long-lasting relationship with them. You may also be able to work with a dealer that does in-house financing. They also tend to have more flexible lending policies.
Whichever avenue you pursue, remember that you’ll still need full coverage car insurance if you finance your vehicle purchase. This can be a costly undertaking—one that may not be worth it for a $5,000 car. So be sure to take that into consideration when budgeting for your car expenses.
To find the best deal on car insurance, use the Jerry app to compare rates from over 50 name-brand car insurance companies in minutes. The average Jerry user saves $879 a year on car insurance.
Eric Schad
Answered on Dec 03, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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