The reasoning behind this, however, is sound. If the car is $4,000, such as in your situation, it likely has lots of miles or is an older vehicle. With extra miles and years on the vehicle comes higher risk. If something happens to the car or it breaks down, the collateral (the car) becomes essentially worthless. Because of this risk and little upside/profit to the loan, most lenders won’t touch it.
If you need a loan for a car in this price range, your best bet is to find a personal loan, also known as a signature loan. These loans will come with much higher interest rates, but at least you can get the financing you need to purchase the car. Paying more money toward this loan each month can offset the higher interest rate, and paying it off as fast as possible is highly recommended to avoid substantial interest charges.
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