Can You Get a Decent Car for $1000 or Less? Yes, and Here’s a Pathway through the Junker Jungle
MAY 2, 2017 AT 10:06 AM BY STEVE LANG | ILLUSTRATION BY JEFF XU
Today it’s as easy as it has ever been to buy a vehicle for less than a grand—and equally dangerous to your financial health. The internet has allowed more sellers than ever to pass on tons of crap cars to unsuspecting buyers, and you don’t want to be their next sucker. So where should you go to get a good used car for $1000 or less? Let’s start at the nadir and work our way from there to Cheap Car Heaven.
A car loan is one way for you to purchase a new or used vehicle. You borrow money from a lender and pay them back over time, usually with interest. The amount you borrow is called the loan principal or financed balance.
Lenders charge interest, this is how they make a profit. The interest rate is a percentage of the loan that you must pay back in addition to the loan principal. Interest rates are determined by your credit history. The higher the risk of you not paying causes a higher interest rate. Each bank is different on how they determine the risk involved and how the rate is based on that risk.
Most banks consider customers in two categories, Prime and Sub-Prime, some banks even [...]