Should I finance a car that's only $3,500?

I want to buy a car from my neighbor, but I don't have more than $100 to give him right now. The price is $3,500. Should I get a loan to buy this car?

Answer
“Unfortunately, lenders typically won’t consider an auto loan for this amount. It’s too high risk and too little money to be made off the deal.
If you want the cash for the vehicle, you might be able to get a signature loan for that amount at a credit union, but your interest rate will be in the double digits.
Your best plan of action is to borrow the money from a relative and pay them back. Or you could ask the neighbor if he’ll accept installments each month.
Hopefully, one of these works out for your needs. Good luck!
Don’t forget that when you buy a new (to you) vehicle, you will need to pay for car insurance, too. While it is an extra expense, it doesn’t have to be super expensive. Use the free Jerry app to help you find the best deal. Jerry compares rates from the top 50 companies in under a minute, delivering the best deals to your phone.”
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Eric Schad
Answered on Aug 02, 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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