An alternative way to borrow money in today’s restricted financial climate is by taking out an auto equity loan.
As its title suggests, the auto equity loan uses the borrower’s car as collateral. However, the borrower is still the owner of the car and has unrestricted access to it.
Definition of an Auto Equity Loan
An auto equity loan is a loan that is taken out on the value of the borrower’s car. The car title must be clear of loans and liens. The car value determines the amount of the loan.
Total Payout on the Loan
When an auto equity company claims that its loan terms are the best, the potential borrower should ask them what the total payback will be at the end of the loan.
Here is an example.
Let’s say that a borrower takes out a loan in the amount of $4,000. The loan amount plus interest is paid out over a one-year period, amounting to a total payout of $10,000 from one auto equity lender and $16,000 from another.
At VIP Finance in the Dallas/Fort Worth area, the total principal and interest on the same $4,000 loan are $4,240, as opposed to payback totals of over two and even three times the amount of VIP’s payback.
How to Get an Auto Equity Loan
To get an auto equity loan, the borrower goes to one of the VIP Finance locations in the Dallas/Fort Worth area. He or she will need to bring the car for inspection, the vehicle’s clear title and verification of income and residence.
Most borrowers have cash in hand within 30 minutes.
If the borrower’s car isn’t paid off, VIP Finance can pay off the loan and roll that amount into the auto equity loan. This will save the borrower money in the long run.
At VIP Finance, an auto equity loan can have a payback term of one or two years, with a minimum payment of $30.00 weekly. The good news about a VIP Finance loan is that the principal balance goes down every time a payment is made, unlike credit cards where only the interest is paid and the balance takes forever to pay off.
VIP Finance does not run a credit report on any of its borrowers.
The value of the car is the primary consideration in taking out a loan.
Protection from Accident Damage
VIP Finance offers its borrowers an “auto club” benefit that protects them from having to continue paying on the loan if the car is wrecked or breaks down. This means that the borrower can simply walk away from the loan in either of those scenarios.
VIP Finance of Texas is the Best
Dallas/Fort Worth residents can find a low-interest, one- or two-year loan on the value of their vehicles. No credit report is run, and the loan process is fast and uncomplicated.