
Car equity title loans seem like a sound financial choice when you are looking for immediate cash and don’t have a friend who can grant you a quick loan. It’s a choice you can make even when you don’t have a good credit score in your record. When you start considering this loan, then you should have an idea about its different aspects. The more you know about this loan, the better decision you can make.
How Does it Work?
A car equity loan is a secured loan kind as your car is used as collateral for the loan. It means that if you don’t pay back the loan amount, then the lender has full right to repossess your car, sell it to another person for handling his default risk. You can get a loan against your car equity. The market value of your vehicle is the primary factor determining your loan amount. The good thing is that you can get a loan for both your new and old car, as long as your old car holds some market value.