In a time when it seems like banks are governed by so much red tape and it feels difficult doing business with many of them, it can be tough securing extra funds when the need calls for it. Especially if you need to get the cash instantly and cannot afford a slow and tedious turnaround time hampered by a confusing and frustrating application and approval process. If this sounds familiar and you are looking for alternative sources for instant cash, you should perhaps ask yourself, “Should I consider taking out a loan against my car?” We take a look at some questions regarding this process in order to help you decide:
Can I take out a loan against my car?
Let us start right at the beginning. The short answer is yes. This type of credit is known as a secured loan because you use an asset with value to provide security for the money borrowed. This generally makes credit quicker and easier to obtain, as the risk to the lender is so much lower than it is with unsecured credit.
However, there are certain stipulations, conditions, and limitations that apply before this type of transaction is possible. So, the important question is, “What is the main condition if I want to apply for a loan against my car?” It is that the vehicle should wholly belong to you. You must be the owner. If you still owe money on the vehicle, or if it is currently already tied to credit as surety, it does not qualify to be used as collateral for credit. In addition to outright ownership, the vehicle in question must also have a valid licence and be in a drivable condition in order to qualify.
How much money will I get when I take out a loan against my car?
The amount you can borrow entirely depends on the vehicle you are planning to use as collateral. The credit provider you choose will assess the vehicle, as well as your ability to repay the installments, and then provide you with an amount. Once you and the credit provider agree on the amount, the paperwork can be finalised and the cash can be deposited into your account. Please note that some transfers might take a while to clear, depending on your bank.
Can I take out a loan against another asset, or does it have to be my car?
Some credit providers, such as Cash Drive, will also consider alternative vehicles of value, such as trucks, motorbikes, boats, caravans, and trailers.
How do I start the process if I want to apply for a loan against my car?
Start by finding a reputable credit provider that deals in these types of secured loans, such as Cash Drive. Simply go to our website and complete the short application form. One of our friendly team members will contact you to confirm all of the required paperwork, inform you of the next steps, guide you through the process, and arrange for the assessment of your vehicle.