Reviewed by Shannon Martin, Licensed Insurance Agent.
Yes, you can use your vehicle as collateral for a secured loan, but only if you own the vehicle outright or have positive equity in it.
If you own the vehicle: You can get a loan based on its actual cash value. As long as it’s less than 10 years old and has less than 100,000 miles on it, lenders should approve you.
If your vehicle is financed: you’ll need to have positive equity. This means your car is worth more than what you owe on the loan.
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