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Loan on car??

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Creditplz
Valued Contributor

Loan on car??

I'm not sure where to post this but my mom called me today and wants to get a loan on her car that is fully owned by her (2014 Malibu LTZ) it is completely paid off, she wants to get a $8000 loan so she can pay her CC debt fully and just have a low interest rate loan to pay... Does anyone know of a loan or bank that would give her a 8k loan on a $24,000 KBB car?. With a good interest rate, her Fico's are around 650
Message 1 of 8
7 REPLIES 7
Creditplz
Valued Contributor

Re: Loan on car??

So I figured out she's looking for a secured loan with her car as collateral, 8K loan for a KBB 24,000 car, she's a member of NFCU & Penfed and banks with Wells Fargo, does anyone know if NFCU & Penfed offer secured loans with a car as collateral?.
Message 2 of 8
Anonymous
Not applicable

Re: Loan on car??

KBB is overinflated by as much as 70%, and I don't think anyone will loan as much as $8,000 with a car (a depreciating item) as collateral. Probably more like $2,000 or even $3,000 would be realistic.

 

I doubt that big banks and credit unions make loans using cars as collateral (not referring to an initial auto loan or refinance situation here), as they would stand to lose on the proposition from a financial standpoint. Probably some secondary (and very likely predatory) lender with very high interest rates is what she would be looking at.

 

Someone else who has been in that situation may be able to help you more. I'm answering based on information from reading and research, and not from personal experience, so there may be someone else with firsthand experience who can help.

 

I personally think it's a risk for her to get a loan against her car. I've never had one, but have heard that the interest rates can be very high and the risk of her losing her car if something unexpected happens is real.

 

I'm also a bit confused as to how she paid off a $24,000 car loan in a year and a half, but has outstanding credit card debt (higher interest than the car loan) that she is having difficulty paying.

 

 

 

Message 3 of 8
Anonymous
Not applicable

Re: Loan on car??

DCU does. Call them on Tuesday.
Message 4 of 8
Creditplz
Valued Contributor

Re: Loan on car??

I helped her pay the car off for Christmas and her birthday and she always paid more then what was due, she always gets into trouble with CC's and I'm not going to help her financially with it anymore so I feel like this will teach her a lesson (i wouldn't let her lose her car if it came to it), but she was telling me she's tired of paying 5 credit cards and she rather have 1 payment.. She tried for a personal loan yesterday but she told me they declined her
Message 5 of 8
Creditplz
Valued Contributor

Re: Loan on car??

Thanks Donny I'll let her know tomorrow Smiley Happy!
Message 6 of 8
Creditplz
Valued Contributor

Re: Loan on car??

Just an update, NFCU has collateralized loans on cars, boats etc.. They gave her $8000.00 with 9.25% for 60 months
Message 7 of 8
Appleman
Valued Contributor

Re: Loan on car??

Thank you for the updated information.

Message 8 of 8
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