Tips on Buying Cars: small loan, conventional banks, decent rate

Question
Hello, I want to buy a used car- ideally at a price around $4,000.  I have $2,400 saved and would like to stop waiting.  I've been advised that it is better to get a loan from a bank or other source(my credit is good) than from a dealership... BUT... everywhere I look has minimum auto loan amounts of $7,500.  I don't want to make that kind of commitment at this point.  What is the best course of action?  Thanks

Answer
There are several alternatives.  Have you checked local credit unions?  They may be willing to loan you less than the conventional banks are willing to go.  What about an advance on a line of credit, from one of your credit cards?  If you have good credit, they may offer a decent rate.  But don't rule out the dealership.  They have "pull" with local banks they regularly do business with, so they may be able to arrange a small loan.  Yes, the rate may be slightly higher, but with the small amount you're looking to borrow, the interest rate is almost meaningless.  For instance, if you borrowed $1600.00 for 2 years at 6%, the payment would be $71.00 per month. If the rate were to jump 50% to a 9% rate, your payment is $73.10/ month.  And you wouldn't be able to get 9% on a cash advance from a credit card. No one wants to pay more than they have to, but why borrow $7500 at a lower rate when you only need $1600?  For what you need to borrow, don't worry about the rate and spend that time finding a good car.