Can I Get a Car for $500 Down?
The Bottom Line
- There are many used vehicles available for $500 down
- Buy here, pay here dealerships can make it easier to access low-down-payment vehicles
- $500 down can make vehicles more accessible, but may also come with cons like higher interest rates
Can You Really Buy a Car for $500 Down?
Saving up for a down payment is one of the biggest hurdles to buying a car. A $500 down payment at Hawthorne Auto can allow you to purchase a vehicle without the traditional 20% down payment that’s required by many dealerships. We’ll explore the pros and cons of buying a car for $500 down to help you find the best used vehicle for your needs and budget.
What Credit Score Do You Need to Buy a Car for $500 Down?
Generally, you’ll need to have a credit score of 670 or above to qualify for a $500 down payment car. Financing is always at the lender’s discretion, but in most cases, this credit score will allow you to be considered for low-down-payment used cars.
Is $500 Down Enough for a Used Car?
In many cases, $500 down can be enough to buy a used car. You’ll have to meet your bank’s lending conditions or go to a dealership that offers buy here, pay here financing, which is often more flexible. At Hawthorne Auto, our in-house financing lets you purchase a variety of used cars for under $15,000 with low down payments.
Pros and Cons of Buying a Car with a Low Down Payment
When purchasing a used vehicle, it’s important to consider whether a low-down-payment car is the best option for you.
Pros
Buying a car with little money down means you’ll have immediate access to your vehicle. It may also be an easier and faster option if you have low credit or other challenges to traditional loan access. As long as you make your monthly payments, it can also be an opportunity to build good credit.
Cons
The downside of small-down-payment cars is that you’ll typically have higher interest rates and higher monthly payments. Since vehicles tend to lose their value quickly, you may also run the risk of having negative equity, or owing more than the car is worth. Negative equity is one of the biggest risks of purchasing new vehicles, as they depreciate much more quickly than used cars.
What Happens If You Put No Money Down?
If you purchase a car with no down payment, you’ll have to borrow more money. Interest rates and monthly payments will be higher, the loan repayment term may be longer, and the vehicle may go underwater faster.
Can You Get a Car for $500 Down with Bad Credit?
Yes, it’s possible to buy a car with bad credit and a low down payment of $500. Used vehicles are often one of the best options for bad credit car loans with low down payments, since rates are typically more affordable, and you may be able to qualify for a lower interest rate plan.
Smart Ways to Reduce Risk with a $500 Down Payment
While a minimal down payment car can make it easier to purchase a vehicle, it also carries some risk. You may want to consider purchasing gap insurance, which would avoid paying amounts above what the car is worth if it’s totaled or stolen. You can also designate a cosigner on the loan, which reduces the lender’s risk and may encourage them to offer you a lower interest rate.
Other Ways to Cover a Down Payment
If you’re looking for alternatives to a down payment, trading in your current vehicle can be a great option. You can also consider no-money-down financing, which allows you to purchase a vehicle without a down payment, though it typically comes with higher monthly interest rates.
How In-House Financing Can Help with Low Down Payments
In-house financing is an easy way to access a low-down-payment vehicle without going through a bank or other lender. At our buy here, pay here dealership, we can help you create a custom payment plan that fits your down payment needs and budget. We’ll look at factors beyond your credit score, such as your income and payment schedule, to help you access financing faster and more flexibly.
Apply for In-House Financing with Hawthorne Auto Square
At our Los Angeles buy here pay here dealership, we’ve made it easier to choose from hundreds of low-mileage, pre-owned vehicles. You can take up to 5 months to build your down payment. In addition to stress-free financing with low down payment options (and no credit check loans), you can find a car that fits your budget. Continue browsing to learn more about Hawthorne Auto’s in-house financing programs, and call 866-707-7664 to speak to a representative today.
Frequently Asked Questions
Are $500 down car deals only available on used cars?
Some new car dealerships may offer special promotions or specific financing for $500 down car deals. However, these down payment prices are much more common at used car dealerships.
Can I buy a car with $500 down and no credit history?
Yes, you can buy a $500 down used car with a bad credit history or even with no credit at all. In-house financing dealerships often offer more flexible financing and options for no-credit financing so you can access loans based on non-credit factors like income.
How fast can I get approved for a $500 down car?
At buy here, pay here dealerships like Hawthorne Auto, you can get approved for a $500 down car the same day. Our in-house financing makes it easy to quickly and conveniently access your new or used vehicle.
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It only takes a few minutes and won't affect your credit.
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