Loan for a used car?

[LuckyMommaToo]

This is for a friend of mine who's in a bind. Is it generally possible to get a bank loan for $5000 or less for a used car? She's not buying through a dealer so financing through them isn't a possibility.
thanks,
-e

[RollerCoasterMama]

Originally Posted by LuckyMommaToo

This is for a friend of mine who's in a bind. Is it generally possible to get a bank loan for $5000 or less for a used car? She's not buying through a dealer so financing through them isn't a possibility.
thanks,
-e

Yup. People do it. Generally, the process is to apply at the bank. You'll need to give them the make and mileage...maybe VIN to do an accident report check. I've done loans through my own credit union. They deposit the money in the bank account so that I could write the check to purchase the car. In my case it was at a dealership, but it would work with a private purchase too. Have your friend call her bank. Even better if she's got a credit union---they're a little more flexible in general.

[mamaofprincesses]

Yes! And different lenders have different criteria. One credit union locally had a rule that the car had to be 7 years old or newer - at another, their only rule was to have "value in the vehicle" (as in, not lending more than the car could reasonably expect to sell for). We did it, and paid it off as fast as possible.

[Hannah32]

I got a small car loan from a credit union in 2004, when we bought our first car.

[talia rose]

i got my first used car loan from my local credit union as a single mom working my way off welfare 17 years ago. it began a long and wonderful relationship that has spanned about 8 more loans - several for used cars and several for businesses. they know me and loan to me when no one else would - especially in this economy. highly recommend checking out your local credit union!

[LuckyMommaToo]

Thanks for the feedback -- I don't know if she belongs to a credit union, but if her bank turns her down, I'll tell her to check out a local CU as well.
-e