How to Get an Auto Equity Loan
What it is
There are two types of auto equity loans. The first type uses a vehicle owner's car as collateral to secure a cash loan. This cash can be borrowed for just about anything — to make a big purchase or pay off other debt for instance. The second type of auto equity loan is actually a home equity loan that is used to finance the purchase of a new or used vehicle. In this case, a homeowner uses the value of his/her home as collateral to secure the loan.
Who it's for
The first type of auto equity loan is for any vehicle owner in need of short-term cash. The vehicle owner can use his/her car's value to free up some extra cash in time of need. The second type of auto equity loan is for any homeowner who is willing to use his/her home's value to secure a loan for the purchase of a new or used vehicle. A big advantage to this second type of loan is that the interest charged is usually tax deductible, since the home is being used as collateral.
What you need to apply
For the first type of auto equity loan, the borrower must have car insurance and hold the title of the car to be eligible. Should the borrower default on the loan, the lender would have the right to seize the car. For the second type of auto equity loan, which is really a home equity loan used to purchase a new or used car, the borrower must be a homeowner. In this case, should the borrower default on the loan, the lender has the right to seize the home.
Apply for an Auto Equity Loan
Apply for your vehicle loan with Capital One Auto Finance
