Can i get a car with 500 down

As 21st century consumers, our minds have somehow become accustomed to asking “what’s the catch” every time we see a lucrative offer. Especially, when the deal involves a substantial investment like used cars in Greenville, SC, we remain skeptical. Thus, it is not unnatural for you to ask why certain used car dealerships accept just $500 as down payment to sell a car. Compared to the average price of used cars, isn’t that laughable?

However, if you dig deeper, the business model of used car lots that take $500 down payment will seem sound. If you analyze their market, you will not have any room for skepticism. Top dealers have the $500 down offer ultimately to help you and the result, in turn, helps them as well.

The win-win situation of $500 down payment

Stating simply, you need a used car and a dealership wants to sell a used car. The major hurdle that exists between the two parties is finances. You will want an auto loan to finance a used car and this is where the whole credit system comes in that eliminates a lot of prospects. With a $500 down payment option, combined with buy here pay here financing, reputed dealers in Greenville help these customers to cross the financial hurdle. You get an auto loan despite your poor credit score, pay just $500 down without losing much savings, and drive home a quality car. Everyone wins in this scenario.

Making $500 down possible

Used car dealerships with 500 down offer can afford to do the same because vehicles come at varying prices in the used car market. If you can currently afford just $500 as down payment, a reputed dealer can show you used cars around the $10,000 price bracket. Put that offer in the new car market and the concept becomes impossible. No lender can take the risk of such a lowdown payment when the prices of new vehicles hover around $36,000.

Additionally, lending to car buyers is another revenue-generating stream for buy here pay here used car dealerships. Facilitating your financing, they earn in interest rates, simultaneously selling a car. Modern BHPH used car dealers are car sellers plus lenders and hence, you see such offers being extended in Berea, South Carolina.

The competition in the market

The used car market has taken off in the last few years. Its popularity has soared owing to quality vehicles and cheaper prices. Dealers who can afford the same are coming up with such offers to capture the market and help willing customers to buy used cars by taking away the financial hurdle. In all, car lots that take $500 down payment are legit businesses. They are a product of a free American market. So, remove your apprehensions, pick a top dealer like Family Auto, and enjoy the benefits of $500 down payment.

Disclaimer

This is personal blog for Family Auto of Berea. All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The owner is not be liable for any errors or omissions in this information nor for the availability of this information. The owner is not liable for any losses, injuries, or damages from the display or use of this information. Reader’s discretion is advised.

March 27, 2019

It’s very possible to get an auto loan with a 550 credit score and $500 down. The key is to find the right dealership, work with the right lender, and pick the right vehicle, and we can help you do that.

Dealerships That Offer $500 Down for 550 Credit Score

Instead, you likely need to find a local special finance dealership that’s signed up with subprime lenders. Subprime lenders specialize in financing credit-challenged car buyers, but they have additional requirements you need to meet in order to get approved.

Subprime lenders have rules as to the least amount they can extend for financing, with the minimum typically set at $5,000. In addition, subprime lenders typically require a down payment. You can expect to be asked for the lower amount between $1,000 or 10 percent of the vehicle's selling price, although this varies by lender.

This means that if you want to finance a car worth $5,000, you would only need $500 to meet the down payment requirement. While it's okay to settle for the minimum down payment, a larger down payment makes your auto loan more affordable.

Qualifying for a $500 Down Car Loan

These numbers sound great, but how exactly do you qualify for a $500 down car loan? Subprime lenders check your credit score and history, but consider outside factors to determine approval. When you go to a special finance dealership, they’re going to ask you to provide documents such as:

1. Proof of income – Although the minimum amount required varies by lender, most like to see a minimum income of $1,500 to $2,000 a month before taxes from a single source. Bring in a recent computer-generated pay stub that shows your year-to-date earnings.
2. Proof of residency – Lenders want to make sure the address listed on the application matches where you live. Bring in a copy of a recent utility bill in your name with the address listed on the application.
3. Proof of a working phone – Subprime lenders need to know they can contact you, so they require you to have a working phone. Bring in a recent phone bill from a national carrier in your name to prove you do. It can be a contract cell phone or a landline.

On top of the required documents and a down payment, the lender may ask for a cosigner. Not all of them do, but if your credit score is in the 500s, a cosigner could really help your chances of getting approved, as well as potentially make the overall cost more affordable by helping you qualify for a lower interest rate.

Ready to Find Auto Financing?

Here at The Car Connection, we help bad credit car buyers by connecting them to local special finance dealerships that are signed up with subprime lenders. That’s not all we can do, though. With our new and used car sections, you can see what vehicles are for sale near you, and compare different cars to narrow down exactly what you need.

To get connected to a dealership near you, simply fill out our easy and free auto loan request form, and we’ll get right to work for you.

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