OneMain Financial wants to put a lien on my car...

[Anonymous]

I need money. Now. No savings and no available income. I pre-qualified with OneMain Financial after I was denied for a personal loan by USAA and Discover. 

They want to give me a secured loan by using my vehicle as collateral. I just refinanced it with my bank so I'm concerned about how this process works. 

Would anyone care to shed some light on this situation with OneMain? Thanks. 

[DONZI]

The situation you describe sounds dire.

Clarify what "no available income" means, specifically.

..and how much money is it that you understand will cure this problem?

Based on what and how you've laid it out here, my first thought would be to sell the car.

The used car market is supposed to be a sellor's market still so perhaps you could get the amount of money you need plus the money to settle the loan on the car.

The situation you describe seems to me, one that I think any deal with One Main will only make worse.

If you have any assets you own free and clear, consider selling or pawning them.

[RootDet]

If you refinanced the car, you obiously do not hold the title, the new bank does. this means you cannot use it as collateral as another bank already has a lien to it.

I have not heard of two liens on a car, but even to remotely do so, you would need the new bank to signoff and provide the title back to do it. they have zero incentive, and if anything risks them losing claim to the asset to cover their losses. A car isn't like a house and you get a second mortgage on the equity. 

[jmw1]

This is called a title loan. As the name implies, you need title to a paid off car. There is already a lien on your car, so you cannot do a title loan. 

I second the suggestion to sell the car to Carmax or Carvana rather than the dealership. If you can't raise your income, you can't afford your current car payment given you have no savings. Used car values are very high. You can probably net some money in your pocket if you bought the car before mid-2020. Selling the car will also  generate extra income every month by the amount of the car loan payment. Your situation sounds very dire and I think you need to let the car go.

[Anonymous]

Hi DONZI,

I am a disabled veteran so I cannot work at this time. I haven't been able to hold a job for many years. My income, though guaranteed, is used up every month. I got myself into some trouble in December that has taken all of my available funds for January. I'm playing catch-up and it's killing me. 

I agree about selling the car. I just refinanced it in Dec. But I think I have virtually no other options. Should I try to sell it private party or to a dealership for a lot less money?

[Anonymous]

Good morning, jmw1. My vehicle is a 2014 Subaru Outback Limited edition that I just refinanced for what I owed plus the equity. I believe I can attempt to sell it private party for at least that much and still come out on top. I'll give it a try. 

[NoMoreE46]

If you provide the details on the subject vehicle, this would be helpful.

[tnhomestead]

Always sell the vehicle yourself, unless you have a company in your area that resells cars and collects a percentage. That gives them an incentive to get the most for your vehicle. Don't forget a good wash, wax and clean. It adds a few hundred for eye appeal. Good luck, thanks for your service.

[increasingmyfico]

If you need a loan look for a company that will approve you for an unsecured loan. Upstart, Lending Club and Sofi are a few. It sounds like your car already has a lien and wouldn't work. Even if it would I wouldn't do that. Not with One Main 

[Anonymalous]

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@Anonymous wrote:

I need money. Now. No savings and no available income. I pre-qualified with OneMain Financial after I was denied for a personal loan by USAA and Discover. 

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Those are both banks (yes, USAA is a bank), and banks are ultimately about their bottom line. Have you talked to a credit union about an unsecured loan? They're structured to serve their members, and it's frequently part of their mission to help people in financial straits. As a vet, you qualify for Navy Federal, and they have excellent customer service and low rates. A local credit union may also be a good option.