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Since the car is financed, it already is collateral for a loan. Your car loan uses the car as collateral for that loan.
I think the only way for you to use the car as collateral for a different loan is to have the NEW lender pay off your car loan, tack the ammount of the car loan on to the new loan you are getting, therefore they would then be the leinholder on the car.
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∙ 15y ago
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What provides a bank with collateral on a car loan?
The car itself
How do unsecure personal loans differ from secure ones?
The difference between an unsecured loan, and a secured loan is pretty substantial. A house, or a car is used as collateral and therefore secures the loan for the lender. For an unsecured loan, there is no collateral available to the lender.
Is it legal for a Credit Union to demand payment on a loan you got to purchase a car when they do not have the title for it?
IF you signed a loan with the CU and used the car as collateral, YES IT IS LEGAL. And it is WISE for you to pay.
Where can I gert a loan using my car as collateral?
I dont have great credit & need a loan bad I have a 2004 Chevy Venture Van paid for that i can use for collateral where can I go to get a loan?
How soon can a car loan be refinanced?
As soon as you can find a lender willing to loan money on the collateral.
Is it illegal to use a financed vehicle as collateral on a loan?
Well yes.... The car in question is already collateral for the first loan.
Can you use your car as collateral for a loan?
Yes, your car can be used a collateral but it is up to the lender.Yes, your car can be used a collateral but it is up to the lender.Yes, your car can be used a collateral but it is up to the lender.Yes, your car can be used a collateral but it is up to the lender.
Can credit union hold title on car if car used as collateral and loan is default?
Yes. That's why the credit union has possession of the title. If you used the car as collateral for a loan and default on the loan the lender will take possession of the car and sell it to offset what you owe on the loan.
Is a car secured property in bankruptcy?
If there is a loan which used the car as collateral, yes.
Can you sell a car that you used a collateral?
No. If you use a vehicle as collateral on a loan or something of that nature, the car actually becomes property of the lien holder (person to which is holding it as collateral), and cannot be sold unless the loan is cleared up.
Will I need collateral for a cash loan?
Yes most of the time you will need some type of collateral for a loan. Typically the most common collateral used for these types of loans are car titles.
Can a loan company reposses my car they do not have the transfer of lien on?
If that loan company loaned you money and you used the car as collateral and failed to make payments on time, they can, and will repossess the car.
Can I use my car's title as collateral for a car equity loan?
When it comes to using collateral for a car equity loan using your car title is an option through certain loan providers it just depends on their qualifications and the value of your car.
What provides a bank with collateral on a car loan?
The car itself
Average amount financed for new car?
What is the average amount financed in an auto loan
How do unsecure personal loans differ from secure ones?
The difference between an unsecured loan, and a secured loan is pretty substantial. A house, or a car is used as collateral and therefore secures the loan for the lender. For an unsecured loan, there is no collateral available to the lender.
If a creditor garnishes wages for debt can they take your car?
If the debt is on the car, or the car was used as collateral for the loan, YES they can repossess the vehicle!
