Do Lenders Accept Cars that are not Fully Paid as Collateral for Auto Loan London Ontario?

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Collateral is the essential requirement for getting an auto loan London Ontario. One question that always generates a lot of debate is whether a borrower can put up a vehicle that they’re still paying for as security.

Can a Car with On-going Payments be Used as Collateral?

Whether a vehicle that’s not 100 percent paid off is accepted as collateral will depend on the lending company.

There are very few requirements for getting a fast loan and most lending companies only accept as collateral cars that have clean titles. This means the vehicle has to be fully paid. It’s a fair point as the loan depends largely on the car’s equity. However, there are lenders open to accepting vehicles that still have a balance as collateral.

What a borrower should remember though that they must have acquired substantial equity on the vehicle before they can put it up as collateral. The lender will look into how much your balance is on the car before making a decision. If it’s less than half of the total price, then it might be considered. The outstanding balance on the vehicle will also be a major factor in deciding how much loan you can get from the company.

Get You More Money than the Competition

Applying for a loan is easy and hassle-free with Premier Loans Canada. Considered one of the best lending companies in the country, they can offer loans up to $45,000, with terms of up to eight years. The company also boasts of affordable monthly payments, low-interest rates, and flexible payment options. You don’t have to worry about your credit score and can even get the cash you need within the day. Log on to their website to apply or call their toll-free number at 1-855-965-1650.

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