To most people, a car is one of their most prized possessions. This is a long-term investment due to its high usability and practicality. In fact, with the help of a car loan, purchasing the vehicle of your choosing is now simpler than ever before. Can you, however, make money off of your car in a pinch? Read our car pledge guide to learn more.
When you get a loan from the bank, you will need to put up some sort of collateral as security. Use your car pledge (รับจำนำรถจอด, which is the term in Thai) as this collateral.
When Requesting A Loan, May I Use My Car As Securities?
Yes. Financial institutions may refer to this as “auto loans.” To find out if your bank provides this choice for loans, you need contact the institution directly.
What Are The Requirements Of Taking Out Such A Loan?
You need to know the current worth of your car if you plan to use it as collateral for a loan at a financial institution. One way to find out is to have an expert look over your car and give you a number that takes into account its age, condition, and loss in value. In the subsequent stage, the bank will extend a loan offer to you. You may be able to borrow anywhere from 80% to 150% of your car’s value, depending on the lender’s guidelines and your personal credit history.
What Will Happen To My Car If I Put It Up As Collateral?
Upon accepting the loan, you will no longer be able to sell the vehicle. Your vehicle’s registration will be updated with a notation stating that you’ve pledged it as collateral.
Is It Possible To Use A Vehicle As Collateral At A Bank?
Certain automobiles may not be acceptable as collateral at some financial institutions. Some financial institutions, for instance, may only extend additional loan funds in exchange for collateral on an automobile that is currently being funded by the institution. The majority of banks will provide additional funding to supplement the principal of a car loan obtained from another financial institution. As collateral, some banks will only take cars that are no more than five years old.
Is It Beneficial To Put Up My Car As Collateral?
Good credit allows you to qualify for low interest rates when taking out a loan against a car. When you use your currently financed vehicle as collateral, you’ll get fast approval and fast cash.