What is An Auto Equity Loan?
It’s when you put up your automobile as collateral for the loan. The lender puts themselves as the lien holder while you’re paying off the loan.
As the lien holder, the lender becomes the legal owner until the loan is paid off. It’s just the same as if you were financing a car. Since the lender is the lien holder they have the right to repossess the car if the borrower defaults on the payments.
An Auto Equity Loan is a short term loan with a high interest rate. They’re like payday loans in the sense that they are usually obtained because of an emergency. They’re the last stop when borrowers can’t find other sources like banks, credit cards, friends, and family members.
Unlike an auto pawn and auto loan allows borrowers to continue to drive their vehicles while they are paying off the loan. If you have any questions or are interested in a auto title loan or payday loan call Greg at (310)433-4625 or fill out our online title loan application. We are available 24/7 to assist you.