Anyone use Vehicle for collateral with DCU?

[JMCB]

Hey guys,

Has anyone applied for a personal loan / auto loan on a paid off vehicle? I know you can refinance your vehicle but what if its paid off? Most banks will use your vehicle as collateral but they usually have local branches near you. But how about DCU since there are no branches around and its all online? Anyone had any luck with this?

[sccredit]

I would not do a personal loan I would do an auto loan on the car.  I see no reason you couldn't get a normal auto loan on the car if it has value.

[JMCB]

Well, that what I was referring to was an auto loan. But sometimes once a loan has been paid off, it no longer is an auto loan (purchase or refinance), Its just a personal loan with collateral. But however its stated, does DCU do this with vehicles already in your name and paid off? How do they do vehicle inspections? The vehicle Blue Books around $10,000. Banks that I have worked with before, always wanted to inspect the vehicle but I've never really did this with an online credit union.

[Anonymous]

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@JMCB wrote:

Well, that what I was referring to was an auto loan. But sometimes once a loan has been paid off, it no longer is an auto loan (purchase or refinance), Its just a personal loan with collateral. But however its stated, does DCU do this with vehicles already in your name and paid off? How do they do vehicle inspections? The vehicle Blue Books around $10,000. Banks that I have worked with before, always wanted to inspect the vehicle but I've never really did this with an online credit union.

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While it's not exactly the same thing, I did a vehicle refinance with equity cash-out. DCU uses NADA book value and can deposit the funds in your DCU savings, or mail you a check. No inspection was required - they assume it's in good shape. 

Maybe it would've been different for a car with no existing lien. You should give them a call.