Car Loan Can Get You The Cash That You Need – Fast!
A car loan often conjures images of one borrowing money to buy a car. But this is not the case 100 percent of the time.
There are instances when this type of loan actually means borrowing money based on the value of your car – second hand, very old, relatively new.
Car Loan: Extra Cash Needed Right Away
Indeed, with life’s uncertainties, emergencies may confront and confound one regularly. Money woes, especially, are very taxing to those with limited earning capacity.
Luckily for people in dire situations, their car might be the source of their needed extra cash. Financial institutions or lenders are now actually lending money based on the value of the borrower’s car.
The New Car Loan
Lenders now offer a product called a car loan wherein the borrower’s car is the basis for the value of the allowable loan. Depending on the results of a credit inquiry, the borrower may avail of an amount that is equal to 50 – 70% of his or her car’s market value.
The good news is, with this type of loan, the borrower need not even surrender his or her car to the company while the loan in enforced. Often, the Certificate of Registration or CR is the only document left with the lender for safekeeping.
Numbers To Be Considered For This Type Of Car Loan
Usually, a lending company charges 2.5% monthly interest for this financial package if the vehicle is six years or older.
For those five years or younger, a monthly interest may be in the vicinity of 2%.
A lending institution may also charge a 5.5% processing fee.
The amount of the loan may be anywhere from Php30,000 to Php 1 million. This is often based on 50% of the appraised car value.
This type of loan may be payable between three to 12 months. There may be instances though when a borrower will be given anywhere between 15 to 24 months.
And so, if you are strapped for cash and you have a car, you may want to consider securing a car loan. Just be sure you deal with credible lenders or financing institutions.