I have taken a loan from the bank for purchasing my car, i'm still repaying the loan...in this situation can i get additional finance for my car? if so who does that....
2007-03-08 05:34:50 · 3 answers · asked by Krishna S 1 in Business & Finance ➔ Personal Finance
I had purchased my car with finance from my bank. I'm currently paying EMI's for the past 8 months...the total loan tenure is 5 years...in this situation can i get addition loan for my existing car? if so who provides such loan?
thanks
2007-03-08 05:37:32 · update #1
You can't get a second loan and leave the first on there. It's not like a house where you have equity.
You can take out a second loan that would pay off the first and possibly give you cash out, if the car is worth much more than you owe.
2007-03-08 05:46:44 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It would be very unlikely. The reasons are as follows, first banks loan money on vehicles based on what they book for in N.A.D.A. most banks loan anywhere from 115% to 145% of wholesale value. If you are in a equity situation? You could refinance the vehicle and get cash back, but this would be most unusual due to the fact that vehicles deprecate so fast.
Take for example we have a brand new 2006 Dodge Sebring on our showroom floor that with discounts and rebates we could sell for $18,150.00. That same car at the auction used with 15,000 miles on it will bring $9,000.00.
2007-03-08 08:33:21 · answer #2 · answered by ? 7 · 0⤊ 0⤋
Banks usually only finance up to a percentage of the value of your vehicle. If you want to refinance your car and get cash out, you need to make sure that the value of the vehicle exceeds the payoff amount and the amount you are wanting in cash. It is rare that the value would exceed this amount, though, because cars depreciate very fast with every mile you drive.
2007-03-08 05:47:31 · answer #3 · answered by Texas Girl 3 · 0⤊ 0⤋