You’ll no doubt be aware that it has become more difficult to get a loan in these days of economic uncertainty than was the case in the past, but your car could provide the solution.
Banks may be reluctant to approve individuals with even slightly imperfect credit ratings, which can have knock-on effects on the ability to afford necessary items or simply everyday living expenses.
However, you may not have thought about converting the items you already own into available cash that you can use within 24 hours. Don’t worry, this doesn’t mean selling all of your possessions – we’re talking about secured loans.
It’s important to consider only items that have a high value if you’re going down this route – and the chances are that your car is one of the most valuable things you own. The process is simple – you submit information about the car you need to borrow money against, then receive a loan quote.
If you approve it, your car will be collected and put in secure storage. You then start to pay the money back and once you have, your car will be delivered back to you. It couldn’t be simpler.
So, how do you know if your vehicle will be suitable as security for a loan?
Is it a desirable brand?
If your car is a top brand, it will automatically be more valuable than other models that are seen as not quite so desirable. Similarly, cars that have gone down as classics will have retained their value and you should get more money from them than from newer models.
Some makes and models that often pop up in secured loan applications include:
• Maserati GranTurismo – once dubbed the brand’s best car for a decade by BBC Top Gear
• Porsche 911 Turbo – a favourite among car lovers of all ages and barely changed since its launch
• Aston Martin DB9 – James Bond’s enduring brand of choice
• Ferrari 458 Italia – the much coveted replacement for the F430 and Motor Trend’s Best Driver’s Car 2011
• Mercedes Benz E350 – a fresh new look for the E Series that ticked boxes for style and performance.
Of course, this is just a small selection of the vehicles you should be able to secure a loan against – we haven’t even mentioned Bentley, Jaguar and Lamborghini, after all. If you have a prestige car and want more information about borrowing money against it, just contact pawnbrokers offering services in the UK for more information.
Is it in good condition?
The condition of your vehicle is something that should be considered if you’re thinking about taking out a secured loan against it. A car that is in a garage covered in rust with no wheels will undoubtedly be worth less than a model that is in full working order, so you may not get as much as you hoped even if it is a good brand.
There’s a lot to be said for maintaining cars carefully, as they may become valuable classics in the future – and you could see the loans you’re able to secure against them grow correspondingly.
Always keep all of the paperwork for each vehicle too, as this will make it easier for experts to appraise them and estimate a value very quickly.
Taking out a secured loan against your car could be the ideal way of freeing up cash without having to part with your pride and joy.
A lot of people get loans on their cars. I dont think its something I would do but depending on your car you could get top dollar. The DB9 and Ferrari 458 Italia are some really nice cars.
Betsy / CollegeMom says
In my banking days people often offered their car titles as a way to get a slightly better interest rate on a personal loan even though they could get the amount on their signature alone. I didn’t like to make title loans for people in desperate situations because of the risk of losing their only means of transportation to and from work. That situation was actually fairly rare, though.