Can you get a loan on a car you own?
I bought my vehicle with cash and own it outright. I need some extra money to help make rent this month and was wondering, can you get a loan on a car you own?
Owning your vehicle and not having to worry about monthly payments or finance options is a great feeling, but few know you can get a loan on a car you own.
If legal in your state, you can use your vehicle’s title to apply for a car title loan. Unlike a car loan used to finance a vehicle, a car title loan is secured using the value of your car and offers you anywhere from 25% to 50% of its worth.
However, the caveat of car title loans is that the lender can repossess your vehicle if you fail to repay the loan or do not meet their terms. On top of that, car title loans often have a short repayment period, costly monthly fees, and a high APR. So, while you can get a loan on a car you own, it should only be done as a last resort if you are in desperate need of money.
Alternatively, if you need some extra money, you should consider taking out a personal loan, borrowing from friends and family, or saving in other areas.
If you want to save money on car insurance, the Jerry app is a good place to start. A licensed broker, Jerry does all the hard work of finding cheap quotes from up to 50 top name-brand insurance companies and buying new car insurance. Jerry will even help you cancel your old policy!
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