Many vehicle owners have enough equity in their cars to fund a variety of financial goals. The key is understanding how to unlock that value without having to trade in the vehicle or take a high-interest rate title loan at an auto pawn shop. Instead, consider an auto car equity loan from OAS FCU or another lending institution. This is a secured loan based on your car’s current appraised value minus any outstanding loans. It allows you to borrow up to 125% of your car’s equity and offers a flexible repayment term up to seven years. It also usually provides a lower interest rate than other options.
Secure Your Financial Future: Apply for a Car Equity Loan Now
Your car’s equity is the difference between its resale value and the amount you still owe on it, determined by using valuation services like Kelley Blue Book or Edmunds. A lender will only lend you the amount of equity in your car, plus some extra to ensure a cushion in case you default on the loan. You must also be able to prove you’ll be able to pay back the loan with your income and other assets.
You can find lenders who offer this type of secured loan by searching online. Be sure to do some rate shopping to find the best option for your needs. And try to limit full loan applications so you don’t hurt your credit score. It’s always good to remember that your vehicle is used as collateral for this type of loan, and if you fail to make payments, the lender can repossess your car to help recoup the costs of your debt.