It’s no secret that many people are facing financial struggles. Living costs are rising and it’s harder to save money. A survey conducted by the American Psychological Association in 2022 revealed that 65% of adults are stressed out due to financial stress. If you find yourself in a situation where you need to boost your cash flow, or you’re unable to pay bills, you may be thinking about borrowing money. Taking out a car equity loan can provide a solution if you are anxious about money or you need a quick cash boost, including for those with bad credit history.
What is an Auto Equity Loan?
Auto equity loans, also known as car equity loans and vehicle equity loans, are secured loans, which enable you to borrow money against the equity in your car. Equity is calculated by taking the balance of the auto loan from the current market value of the vehicle. If you have equity in your car, and you’re looking to borrow money, it’s worth considering an equity loan for a car.
Online auto equity loans are similar to home equity loans. Instead of borrowing money against the equity in your home, you take out a loan based on the equity in your vehicle. If your car is worth $25,000, for example, and your outstanding loan balance is $10,000, the equity will be $15,000.
How do Auto Equity Loans Work?
If you choose to take out an auto equity loan, your car will be used as collateral. The lender will offer you a loan based on the equity you have in the vehicle. If you don’t have an outstanding debt to pay on your car or truck, and the balance is $0, your equity will be equivalent to the market value of the vehicle. Lending terms vary, according to the provider you choose. Some companies will offer you the total value of the equity while others may set a maximum fee, which is higher than the equity value.
Equity car loans are an excellent option for individuals who are looking for a short-term loan. With this option, you can borrow money against the equity in your car without handing the vehicle over.
If you apply for an online auto equity loan, the lender will check the application and make a loan offer based on the market value of the vehicle and the amount of equity you have. Repayments vary according to the terms of the agreement and the equity calculation. During the loan period, the lender will become the lienholder until the loan is paid off in full.
At Champion Cash Loans, we offer auto title loans on a wide range of vehicles, including cars, trucks, motorcycles, and RVs. Get started today!
What are the Advantages of an Equity Loan for a Car?
The main benefits of a loan on car equity include:
- Access to better interest rates than some other loans. This is because auto equity loans are secured, with the car acting as collateral. Auto equity loans are less risky than other types of loans as the lender can repossess the vehicle if the individual misses payments.
- Higher chance of approval: if you have equity in your car, there is a high chance of approval for a loan compared to some other types of loans. This is due to the relatively low level of risk for lenders.
- Available to vehicle owners who don’t own their home: auto equity loans are available to a wider range of people, as you don’t have to be a homeowner to borrow money against your vehicle.
Is an online auto equity loan right for me?
When you’re thinking about borrowing money and taking out a loan, it’s critical to take the time to research, find out more about different types of loans and weigh up the pros and cons based on your requirements. A car equity loan is a good option in the following circumstances:
- You have equity in your vehicle
- You are looking for a short-term loan
- You want a loan that has relatively lower interest rates than other lenders (We can help!)
- You can afford the repayments on a vehicle equity loan
If you’re unsure whether an auto equity loan is right for you, our friendly, experienced team is on hand to offer advice and provide information. At Champion Cash Loans, we specialize in equity car loans and we have worked with a wide range of clients, offering solutions that align with their needs and preferences. If you have any questions, don’t hesitate to get in touch.
How do I find a vehicle equity loan?
To find a vehicle equity loan, you can search online for auto equity title loans near me, ask people you know for recommendations, read reviews, or call or email reputable lenders. Champion Cash Loans is a leading online auto equity loan provider with a proven track record. We have a dedicated team of agents ready and waiting to help you get started.
To start your application or find out more about our auto equity loans, all you have to do is apply on our completely online instant title loans form or contact us at 1-888-798-1970.
What Information Will I Need for my Car Equity Loan Application?
If you’re ready to apply for a car equity loan, you’ll need to answer some quick and simple questions. Our agents will ask you about:
- The make and model of the vehicle
- Vehicle condition
Champion Cash Loans offers options for applicants with bad credit scores. If you have equity in your vehicle, we’ll go the extra mile to help you get the cash you need with the car as collateral.
Why choose Champion Cash Loans?
Here are some excellent reasons to choose Champion Cash Loans for an auto equity loan:
- We’ll always offer/find you the lowest rates possible
- We have a proven track record
- We’re here to help our customers
- We offer loans on a wide range of vehicles
- We take care of everything in-house to provide a seamless experience for our clients
- We do not assess any prepayment penalties on car equity loans
Champion Cash Loans offers title loan locations nationwide, get more information on how you can apply and get instant approval in your state.