I just wanted to do a public service and let people know of a little known loan product called a Cash Out Auto Loan. If you own your auto free and clear (or, most times, if you have any equity in your car even if you are financing it) you can take a loan on it. For some reason, many people people don't know that this option exists. Depending on the bank you can get anywhere from seventy to one hundred percent of your cars blue book value. It's sort of like a personal loan only at an auto loan rate because it's backed by collateral. There are restrictions usually like year and mileage of the car. It's a great option for debt consolidation, a new purchase, or to supplement the cost of an additional car even. Many times banks will not advertise these types of loans so you'll more than likely have to call and ask.
A cash out refinance could pay off existing loans with less interest and lower monthly auto loan payments.
You don't have to pay the complete sum straightaway. This helps in allowing you to pay in monthly installments. As the times pass your income will increase, which will certainly lessen the burden which is upon your shoulders as the monthly installments are the same. Taking auto loans allow you to save your money for any future mishap. An auto loan helps you to go beyond your budget range while buying a car. You can go for a car of your choice with the help of a suitable auto loan.
Nice piece. Just to add on your piece. Car title loans providers allow people with bad credit to borrow because they already have the title as security irrespective of whether you pay the loan or not. This means it is risk free on their side but risky on the side of the borrower since you are often given less than 100 percent of the actual value of the loan. However they are very effective especially because of the speed with which they are processed, within 24 hours. You can never find anyone lending you money that fast, even the banks irrespective of how impressive your credit rating is. In addition, you still have the option to repay the loan in total without paying penalties for early repayment. It is pretty fast and ideal for people faced with emergencies. Last but not the least, you apply for the loan online and collect the money from any of the lender's offices across the country. That is the time you hand over the car title to the lender as you collect the money. I think that is impressive!
