By Trevor Wonders
It sounds completely counterintuitive: Why would a bank refuse to lend you $6,000 for an older, used sedan with zero down, but turn around and approve you for a $30,000 newer SUV?
It sounds completely counterintuitive: Why would a bank refuse to lend you $6,000 for an older, used sedan with zero down, but turn around and approve you for a $30,000 newer SUV?
If you’re shopping on a budget, this scenario feels like a trap. But inside the auto finance industry, it happens every single day. Lenders aren't just looking at the sticker price; they are evaluating risk.
Understanding why a $6,000 loan can actually be riskier for a bank than a $30,000 loan makes it much easier to get approved for…