Equity is the value of something when the liabilities are factored in. This is what makes it different from “value” because you can put money and effort into your home to build up the equity.
When you increase the equity you have more bargaining power if and when you need to borrow against it. Although we usually associate equity with houses, it also applies to vehicles.
Have you even considered borrowing against your car? You can, and here are a few reasons that you should:
Title Loans and Auto Equity Loans
Anyone who owns their own car or truck has the option of using that vehicle to secure a loan. A lender assesses the condition and book value of the vehicle and will make you an offer based on that.
Vehicles with more equity in them (that have been taken care of, look good and run well) will secure a better loan amount than other cars will.
A “secured” loan refers to you putting up collateral against the borrowed sum. Securing a loan will get you better rates and more flexible options on repayment, because the lender sees this as less of a financial risk.
For people who may not have the best credit (or have no credit at all) these kind of loans can be a lifeline. They are not dictated by credit score, or past spending – if you own the vehicle free and clear, you can apply right and see how much you qualify for!
Choose a Lender You Can Trust
Most banks and lenders are back and controlled by corporations off the island. In a time in history such as this, the people of Puerto Rico should rally together and support the businesses of Puerto Rico, and those businesses should support the people in return.
PR Title Loan is locally owned and operated. Contact our San Juan offices today and ask how we can help you get the money you need.