Most lending companies accept all types of vehicles as collateral. However, there are some that prefer to only accept cars of a certain model or age. Economics is the main reason for this. The lender wants to ensure that they can sell the vehicle and get back some of their investment. That can be harder to do if the car is old. No need to worry though, as you can still use an older car when applying for a quick car loan Regina Saskatchewan.
Can I Use an Old Car as Collateral?
Yes, you can use an older car as collateral, but it would depend on the lender. Some companies are understandably wary about accepting certain models since its equity might not be enough to cover the loan. There’s also the risk that if they repossess the vehicle for non-payment, it’s age or model will work against it and they’ll be harder to sell.
There are companies that are amenable to accepting older cars as collateral. However, the borrower should not expect a high loan amount. Bad credit auto loans are dependent on the value of the car, which depreciates as soon as it’s driven off the manufacturing lot. Aside from that, lenders also consider the age of the vehicle, its mileage, how well-maintained it is, and the equity the applicant has. For instance, a relatively new model of a Toyota will fetch more than an old and battered Ford pickup truck.
Borrow More Money Than any Competitor has to Offer
It doesn’t matter what car you’re driving you’ll still get the best deals with Premier Loans Canada. The company can offer as much as $45,000 in loans, along with low-interest rates and affordable monthly payments. You don’t even have to worry about your credit score. Log on to their website or call their toll-free number at 1-855-965-1650.
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