Author Topic: You may be able to use the equity in your car for cash  (Read 2722 times)

m8547

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You may be able to use the equity in your car for cash
« on: May 14, 2014, 09:06:40 PM »
My bank sent me an offer today to take out a loan on my perfectly good, paid-for car. To get the lowest rate you need a balance over $15,000! Maybe if people have cars that are that expensive they should sell them and buy a less expensive car.  Of course banks don't want that because then they can't make money on the loans.

Hugh H

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Re: You may be able to use the equity in your car for cash
« Reply #1 on: May 14, 2014, 09:34:35 PM »
I believe lowest interest rate on such a loan is 5% or so. Not a good idea.

davisgang90

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Re: You may be able to use the equity in your car for cash
« Reply #2 on: May 15, 2014, 04:29:11 AM »
We had a quaint little Italian restaurant across the street from our house.  It closed down and a Title Loan place opened up.  Grrrrr.

MrsPete

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Re: You may be able to use the equity in your car for cash
« Reply #3 on: May 19, 2014, 08:11:33 AM »
You can take equity out of a depreciating asset? 
That doesn't seem right. 

ncornilsen

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Re: You may be able to use the equity in your car for cash
« Reply #4 on: May 19, 2014, 11:54:11 AM »
Eh, I did this to a degree. I had the cash on hand to pay 100% on my latest car purchase, but the credit union at work will loan at 2%.  So, I took out a loan and used the cash to finish funding my 2014 HSA and

Debt is a tool. Use it correctly and it isn't a bad thing.

Insanity

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Re: You may be able to use the equity in your car for cash
« Reply #5 on: May 19, 2014, 12:36:25 PM »
Eh, I did this to a degree. I had the cash on hand to pay 100% on my latest car purchase, but the credit union at work will loan at 2%.  So, I took out a loan and used the cash to finish funding my 2014 HSA and

Debt is a tool. Use it correctly and it isn't a bad thing.

Unfortunately, debt used as a tool is like chalk on a blackboard to some.  When you start having 5 or 6 payments that are purely "tools" for having cash handy, some people start panicking about it.  We had that with a HELOC, Car Payment, Medical Payment, Mortgage Payment, and others.  All low interest (or at worst break even).   My wife couldn't stand having to think about all those payments going out every month and seeing our budget higher than our income.



Ironfist

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Re: You may be able to use the equity in your car for cash
« Reply #6 on: May 20, 2014, 09:42:53 AM »
I believe lowest interest rate on such a loan is 5% or so. Not a good idea.

Can you make more than 5% on the market?