Actually they should have rejected you. Giving a loan for $5,000 for a car that has a value of $6,600 wouldn't be a wise decision for them. With a new car if you miss payments and go into default with them they at least have a new car that is worth close to the original amount compared to the used car which is probably at a higher loss than that $20,000 they loaned you for the new car. This also has to go along with insurance. Someone is more likely to put insurance on their $20,000 car compared to a car that only costs $6,600. This creates a bigger risk for the bank than if they were going to give you a loan for $20,000 for a new car. Even if you do get insurance for the car that costs $6,600 are you going to get as much insurance as you would for a $20,000 car? That $5,000 loan is more risky for Wells Fargo than the $20,000 new car loan is. You have to take into all the factors for this.