$500 less car lots for bad credit

If you have bad credit and are on a tight budget, finding an affordable car loan can be difficult. You usually have to make a down payment when you take out a bad credit car loan. It may be possible to find a car for $500, but you may need to put down a slightly larger down payment, depending on the lender’s requirements. However, you should know that a larger down payment saves you money.

Where can I get a $500 auto loan?

Often, consumers ask us where they can get a $500 car loan if they have bad credit. Few dealerships offer low payment options for bad credit, so the key is to apply with a subprime lender.

These lenders offer loans through brokers who specialize in financing and know how to handle unique credit situations. We can help connect you to one of these dealerships near you, but first let’s explain what subprime lenders are looking for in a down payment.

Generally, subprime lenders require a minimum down payment $1,000 or 10% of the sale price of the vehicle, whichever is less. This means that if you decide to finance $5,000, you may only need $500 to meet the down payment requirement.

Why you should make a bigger down payment

The minimum down payment requirement helps you qualify for a bad credit car loan. You can deposit $500 if it meets the requirement, but we recommend making the largest deposit you can comfortably afford if you have less than perfect credit.

The reason for this is that you end up saving more on the overall cost of the loan. When you make a bigger down paymentyou reduce your total interest costs and lower your monthly payment.

Let’s look at an example to see how it works in action: Billy has bad credit and takes out a subprime car loan. He finds a dealer to work with Auto Express Credit and takes out a loan of $8,500 at 16% interest for 48 months (four years).

Without taxes, property rights and license fees or insurance costs taken into account, here is what his loan would look like with different down payment amounts:


Monthly payment

Total interest paid




$850 (10%)



$1,700 (20%)



As you can see, Billy is making his car loan more affordable by putting more money aside. A larger down payment saves him hundreds of dollars in total interest charges, which is very important if you have bad credit and receive a higher than average interest rate.

Need help finding a dealer?

Is it possible to find a $500 car lot? That’s for sure, and Auto Express Credit wants to put you in touch with a dealer in your area.

For over 20 years, we’ve helped consumers with bad credit find financing by matching them with local dealerships who have the right lending resources. To get started, simply complete our free and easy form car loan application form today!

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