Anyone refinanced a car they own outright??

[Anonymous]

I am sure this can be done but wanted to find out if anyone had experience.  Recently got a new BMW that I ended up paying cash for (over 60k) because a couple of weeks before the ship arrived with my car I was forced to resign from my job and I didnt want to try and finance such a large car loan without income being worked out.  I am thinking that it would make sense for me to finance about 50% of the value of the car so I can free up some of that cash that is tied up in the car.  Has anyone done this and if so any pointers?  I belong to NFCU, DCU and Penfed so I will work with those three and see which one has the best deal.

Any thoughts are appreciated.

[Anonymous]

I've only refinanced cars that I still owed on to pull equity out or lower the APR. I will be looking forward to hearing the responses. I hope it's possible for you to do the financing! 

[krielly]

My cu advised this would be a personal secured loan when I considered doing this a while back.

[Appleman]

This will not be a personal loan as it is secured with the BMW. I believe PenFed will do such a loan and they have very competitive rates.

Not sure how to get around the employment (or lack of) but if the credit scores are good, I doubt they would even check. 

Please let us know how this works out...

[Anonymous]

I did it years ago. I paid off a vehicle, then ran into financial problems and took out another loan using that vehicle as collateral. I later paid off that vehicle again.

It showed as a secured personal loan on my credit report. The interest was 9 or 10%. Much higher than the typical auto loan.

[Anonymous]

I will give PenFed and NFCU a call next week and see what they have to say and report back.

[Anonymous]

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@Anonymous wrote:

I will give PenFed and NFCU a call next week and see what they have to say and report back.

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Any luck with this? I'm thninking of doing something similar.

[Anonymous]

It can be done, Penfed will do it as well as others.  I decided to hold off, I like not having a car payment.