Using your car as collateral...

[Ravenous Wolf]

I am going to have my car paid off in about three payments.

In the event of an emergency in which I need some cash, what is involved in using my car for collateral in a bank or credit union loan?

Has anyone ever used their car for collateral?

[DHK]

It is and can be done - but it will usually be done through a bank's "Financial" department - like Wells Fargo Financial or CitiFinancial. Rates will be higher than most secured loans (I think) because the collateral is still a depreciating asset - so you still might pay between 12 to 18%.

I could be wrong.

[Anonymous]

DCU will loan out at 7%.

[rgates1]

That crossed my mine as well. I have a 1999 Honda Civic with 89K miles and I want to get a loan and use my car as collatoral..what do you think the monthly payments would be?

rg

[life]

what is dcu --do you have a website for them.

[DocPC]

Here you go!: http://www.dcu.org/

[Anonymous]

thank you