Michael,Popular 365 Question

What if the car is cheaper than the allowed auto loan? The bank approved me for 20,000 but the car I want is only 14,000?

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3 months ago 7

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  1. John

    You were approved for a loan Up to 20,000....YOU AND THE Dealer have 20 K approved to work with.....You're only going to use 14,000 of it, so you're in good shape

  2. AlCapone

    You'll only get the $14,000, assuming the lender's book value for the car is at least $14,000. If his book value is only $10,000, you'll only get $10,000, or possibly a little more if you have good credit. You would have to make up any difference with cash.

  3. efflandt

    You may have been approved for up to $20,000, but if the vehicle you are buying is $14,000, you would only get a loan for that "minus" required down payment. Note that if your down payment is too small, you may end up at some point being "upside down" on your loan due to depreciation (still owing more than your vehicle is worth).

  4. TheReal

    Your loan is for an amount UP TO $20,000. If the car you're buying is $14,000, then you'll get a check for $14,000 plus tax, title, and license. That's it, and not a penny more.

  5. Never

    You still only get the amount you spend. Maybe a little more for sales tax & title.

    Spending less than you were approved for is a good thing.

  6. Windowphobe

    Nobody says you have to borrow the whole twenty grand. (When I bought this house, I was approved for some absurd sum; I bought something $17,000 cheaper, because it seemed sensible.)

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