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Yes. Using your vehicle as collateral for a loan is a very common practice. A lot of individuals who take on small, short-term loans often use their cars as collateral because it is quickest to redeem and requires the least amount of paperwork or processing.

Using Your Vehicle As Collateral

Before a lending company will allow you use your vehicle as collateral, several things have to first be ascertained. Every lending company who accepts cars as collateral will check your vehicle’s overall resale value first. The total value of your car will dictate how much (if any) you are allowed to borrow from the company.

In most cases, vehicles with a greater resale value than money being borrowed will be accepted as collateral. Well-known brands or currently popular vehicles also stand a higher chance of being accepted due to demand and high market value. Any pre-existing changes or modifications to a vehicle which can either raise or depreciate the overall value of the vehicle will also be considered.

The status of the car’s ownership is also something lending companies will consider before you give you a loan. If you own the car outright, your equity will allow you to use it as collateral provided that you borrow less than what the equity is. Vehicles that are still being paid for will often not be considered eligible as collateral. 

Lastly, the provenance of your vehicle will also be considered. Vehicles obtained from second-hand dealerships may be more difficult to use as collateral than are ones purchased brand-new, for example. Always check with your local lending company for their terms and requirements.

 

When you’re 17 years old, you’re at that point of your life when you’re almost considered an adult but not quite yet. This is why if you will ever try to take out a loan, lenders are likely to turn you down. Most UK lenders have made it a requisite for their borrowers to be at least 18 years old before lending them any money. 

Applying for a Loan at 17

If you ever find yourself in need of extra cash and you want to take out a loan, you’re likely going to run into a problem since you’ll be a year short than what is required as the legal age. A loan is a legally binding contract which means that lenders can get into trouble if they will lend you money.  However, there are things you can do to get around it. 

To increase the chance of approval, you can have a guarantor to the loan. This means that there will be an adult person that will guarantee the loan on your behalf. With a guarantor present, this means that there is somebody who will agree to pay back the loan in the event that you will not be able to fulfil your obligations. 

Applying for a Car Loan

If you want to take out a car loan, it would help if you can make a huge down payment. If it is a bank loan that you’re going for, then you’ll need to have a good credit. The guarantor will need to have a good credit rating too. You can borrow from friends and family who might be happy to help you out so you can gather enough funds for the down payment. Just remember that if you do find somebody who is going to help you out in getting a loan, try to make things more official by drafting out a legal contract. It should detail how the payments are going to be made too. In addition, it must be notarised by a lawyer to make it truly legally binding. 

It wouldn’t hurt too if you’re already holding a responsible job at 17. A good credit score is going to take you places too. Just remember that not many lenders may be happy to assist you. If you look long enough, however, you might just find one who will.

Payment Method?

Once funds are available, we send it directly to your checking account that is registered during your application. You should be able to receive the funds in a just a few minutes to an hour. No need for complicated documents or extra requirements. We’ll send it right away.

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