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I'm looking to buy a new car and have found one that I really like. It is priced at $4500 (with taxes). I currently have $2700 in my savings account. I would like to get a loan for $2000 (leaving me with a little over $200 in my account).
I have talked with my bank about getting a loan and they said they usually don't make loans for under $7000. Where can I get a loan for $2000?
Also I would like to get a loan that doesn't penalize for early payoff.
Check with other banks or credit unions in the area. You should be able to find one who will accomodate your needs.
Try opening a line of credit instead. Then, when it's paid off, you still have it available for other large purchases (your refrigerator breaks, or something, and you need to buy a new one).
As a last resort, take the $7,000 loan from your bank, buy the car, and immediately pay $5,000 against the principal of the loan. They might have early payment penalties, though, so check their fees before you decide on doing this.
When we bought our car, I applied for a Capital One Auto Loan. Once I was approved, Capital One sent me a blank check. When we bought the car, I filled out the dollar amount and signed on the dotted line. When the check was cashed, I had an auto loan.
Edit: Just wanted to mention that there were not any penalties when I paid the loan off early.
You can try Prosper.com or LendingClub.com.
What about getting an unsecured loan at your bank? The interest rate will be higher but you can probably get it for the amount you need.
Don't even know if this is a possibility but what about putting the balance on a credit card?
for better or worse, I've had great luck with pentagon federal credit union - its open to anyone who's i the military or related to someone in the military OR someone who makes a one-time donation for the national military association - see #7 here
They have the best rates I've ever seen on auto loans - I refinanced a used auto loan I had at 6% interest rate down to 4% interest rate. Now thats a damn good deal.
They have no prepayment penalty that I'm aware of, but I dont know their minimum loan amount. One option you have is - as long as you find a place that'll accept a $4,000 minimum loan but has no prepayment penalty, take out a $4k loan and just pay off $2k immediately. That'll work well for you.
Have you considered asking the car dealer? They are likely to be eager to help you in any way they can to sell the car and might be willing to finance the loan through their credit department.
