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Elyse asked in Business & FinanceCredit · 2 months ago

Secured loan question?

If I apply for a secured loan and put my car up as collateral does my car need to be paid off ? Because I just got it last year and I’m still making payments on it and I wasn’t sure thanks 

3 Answers

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  • Anonymous
    2 months ago

    Hypothetically you could have 2 liens on your car.Titles have a place for 2nd lien holder. In the real world, that almost never happens. If you owe say $4000 and the car is worth $8000 you may be able to refinance and pull out some cash. Otherise, it's not going to happen.

    Many people have no equity in their car until its almost paid off.

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  • Barry
    Lv 5
    2 months ago

    Your car will not be acceptable as collateral. It's depreciating and it could be, repossessed, stolen or written off in an accident. So it's not of a fixed value.

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  • 2 months ago

    Your car can't be used for a secured loan (ever) because it is a depreciating asset.

    Except title loans.

    To get a title loan, you need to own the car not be making payments. 

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