A lot of people encounter times in life when they run low on cash and cannot pay their bills. If you've ever been in this position, you probably understand how hard it can be to get by. You may be in this situation right now and wondering what you can do to get some cash fast. Well, if you own a car, you could use it to get cash by taking a car equity loan. If you are opposed to that, you could consider selling your car. Before you choose either option, here are a few things you may want to consider.
How Car Equity Loans Work
Before taking either step, it's important to fully understand how a car equity loan will work if you use this option. Car equity loans are offered through various types of businesses, including pawn shops in many cases. Anyone can bring a car to a business like this and exchange the title for cash.
The business will give you cash on the spot for the title of the car, and you can get the title back when you repay the loan. To go through with the loan, you will have to pay a fee for the loan and interest on the money you borrow. The interest rate is usually around 300%, but it can be even higher than this. The lender will tell you the rate when you apply for the loan. Car equity loans are generally due within 30 days of the day you took the loan, but this can vary.
If you use this option for getting cash fast, it's important to know how much money you will get, the interest rate of the loan, the due date of the loan, and the terms for rolling the loan over if you cannot repay it in full when it is due.
One nice part about car equity loans is that they are instant. If you take your car in and agree to the terms of the loan, you can walk out of the business with cash in your hand. On the other hand, if you decided to sell your car to get cash, you will have to first find a buyer for the car. This can sometimes happen quickly, but there are also times when selling a car may take days or weeks.
The Amount Of Money You Will Get
The second thing to consider is the amount of money you will get for the car. Suppose your car is worth around $2,500. If you sell it outright for cash, you might be able to get close to this amount, or you might be able to get the full amount.
Car equity loans are not issued for 100% of the value of a vehicle. Most places that offer car equity loans will only loan 25% to 50% of the value of a car. In your case, you might be able to borrow around $625 to $1,250 on your car. If you need more than this, selling the car would probably be the better option, because you are more likely to receive closer to $2,500.
Life Without A Car
The final thing to think about is can you live without a car? If you sell your car, you will have to live without one for a while. If you cannot get by without a car, choosing a car equity loan is a better option. With this option, you can keep your car and get the cash you need. You will have to make sure you repay the loan when it is due; otherwise, you could end up losing your car to the car equity lender.
If you are interested in learning more about car equity loans, contact a lender in your area. This could be a great solution to your current cash flow problem. You can also visit sites like http://driveittitleloan.com to learn more.
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