If you pay cash for a car that cost let's say $20,000 can you then use the title to the car as collateral on a loan for something else?
2007-02-26 13:42:38 · 12 answers · asked by Cheryl 2 in Business & Finance ➔ Personal Finance
yes as long as whoever you're getting the loan from accepts it. It is really a question that needs to be asked to the loan company directly, because each loan company could have different answers
2007-02-26 13:47:21 · answer #1 · answered by an_ass_hole_81 1 · 0⤊ 0⤋
yes people put up cars and houses for credit lines all the time but the car if bought for 20 thousand is worth about half for a loan the reason is the car loses value as its driven out the door of the car lot .. and expect to pay a high interest so shop around
2007-02-26 21:51:40 · answer #2 · answered by Anonymous · 0⤊ 0⤋
you could if that's what you wanted to do. They would only loan about 75 or 80% of the value of the car though.
2007-02-26 21:46:13 · answer #3 · answered by ValleyR 7 · 0⤊ 0⤋
Yes, if the car is paid for in full, you can use the equity to secure a personal loan.
2007-02-26 21:45:54 · answer #4 · answered by alisongiggles 6 · 0⤊ 0⤋
Possibly. But not likely, since a car is a depreciable item and decreases in value.
2007-02-26 21:45:58 · answer #5 · answered by Wheel 3 · 0⤊ 0⤋
If the car is paid in full, you can use it for collateral.
2007-02-27 04:32:23 · answer #6 · answered by mandylmit 3 · 0⤊ 0⤋
probably but it wont be worth 20,000, cars depreciate as soon as you drive them off the lot
2007-02-26 21:46:30 · answer #7 · answered by crazylarry88 4 · 0⤊ 0⤋
Depends where you are from as different countries have different rules
2007-02-26 21:45:59 · answer #8 · answered by cmitchelle71@yahoo.com.au 2 · 0⤊ 0⤋
yes
2007-02-26 21:44:57 · answer #9 · answered by Cool guy 4 · 0⤊ 0⤋
well the first one said yes, the second one said no,, so i'll say maybe
2007-02-26 21:46:03 · answer #10 · answered by Da 1 N only 3 · 0⤊ 0⤋