topic Re: Personal Loan for Down payment in Auto Loans

Personal Loan for Down payment

Anonymous — Mon, 13 Jul 2020 21:35:14 GMT

How feasable is it to use a Personal loan for a down payment? Every finance app I submit wants about $2500 down which I just don't have rn. Could I have my parent co sign on a PL for me and then use some of that for a down payment on a car? Is the personal loan just a cash deposit into your account? I would have the ability to fully pay off the personal loan within two months I just don't have that much cash on hand immiediately and my car broke down.

Re: Personal Loan for Down payment

KLEXH25 — Tue, 14 Jul 2020 00:24:55 GMT

I mean, I *guess* you can do that, but I really wouldn't recommend it. If you can pay that off in 2 months, can't you just borrow that amount from one of your parents (instead of co-signing a loan)?

Re: Personal Loan for Down payment

ccquest — Tue, 14 Jul 2020 01:10:14 GMT

Another idea (could be stupid), what sort of coverage do you have on your insurance and might they pay anything for the broken down car? Could be totaled and they might give you some kind of fair market value to replace it which you could use towards the down payment.

Otherwise, yes you probably could get a personal loan but make sure to pay it back quickly because you don't want things ballooning after you take a loan to get a loan for a car.

What sort of cars are you looking at and what sort of profile do you have that they are requiring $2500 down? That's more than I've put down on the last two cars I've bought and those were with dealer financing. Right now should be even better with deferred payments and other promos running.

Re: Personal Loan for Down payment

Anonymous — Tue, 14 Jul 2020 01:40:58 GMT

Can you open a 0% intro credit card and put it on that?

Re: Personal Loan for Down payment

Brian_Earl_Spilner — Tue, 14 Jul 2020 02:49:38 GMT

The dealer can allow you to spread your down payment over time, if they want to. When I was younger, I was in a similar position. They allowed me to put what I had down and take the car. I then had to come back the next 2 paydays and pay the remainder, so spread out over a month.

Re: Personal Loan for Down payment

Anonymous — Tue, 14 Jul 2020 03:07:50 GMT

I have a 615 credit score, about 611 now after the hard pulls. No baddies on my credit over about 4 years. One card that is almost maxed out (1600/$1800) one card that is half full but its only a $400 card and one fully paid off $800 card. Two auto loans in the past. I'm 21. They're actually asking for $2900 down. My car just broke down at a really inoppurtune time and I recently paid for school so I'm strapped for cash. I make about $2500 a month though. I might try what one other poster suggested and see if the dealership could spread my down payment out over the course of a few weeks. I'm not sure if that would work though bc the financing is through a subprime bank(or might be capital one) not the dealership itself.

Re: Personal Loan for Down payment

Gladius — Tue, 14 Jul 2020 13:06:34 GMT

@Anonymous wrote:
I have a 615 credit score, about 611 now after the hard pulls. No baddies on my credit over about 4 years. One card that is almost maxed out (1600/$1800) one card that is half full but its only a $400 card and one fully paid off $800 card. Two auto loans in the past. I'm 21. They're actually asking for $2900 down. My car just broke down at a really inoppurtune time and I recently paid for school so I'm strapped for cash. I make about $2500 a month though. I might try what one other poster suggested and see if the dealership could spread my down payment out over the course of a few weeks. I'm not sure if that would work though bc the financing is through a subprime bank(or might be capital one) not the dealership itself.

Just like another poster, I did this a couple of times back in the day with car purchases. They made me write out 2 signed post dated checks.

Re: Personal Loan for Down payment

Anonymous — Sat, 18 Jul 2020 14:55:24 GMT

I would recommend against borrowing money to use as a down payment for a vehicle, maybe look into getting a personal loan to buy a cheap car off facebook to get you by in the meantime? In addition, the dealer agreements that dealer's have in place with their lender's typically don't allow for this. Most lender's a dealer will use will have language in their dealer agreement prohibiting the use of borrowed funds for a down payment, as well as requiring any down payment to be made in full at the time of purchase. Sure there may be lender's who don't have those stipulation's, but most of them do- although it ultimately comes down to wether the dealer is willing to do that or not.