Do you have a car that’s worth more than you owe on it? That means you have equity in your vehicle. Did you know you can use that equity for a secured loan, which could save you a lot of money?
You may already be familiar with secured loans. If you have a home equity loan, commonly referred to as a second mortgage, that loan is secured by the equity in your house. What you may not know is that you can also borrow against the equity in your vehicle.
For example, if you have $10,000 in equity on your car, a secured loan for that amount might be financed at 2.99% APR* for 60 months (with payment protection). In this scenario, your monthly payment would be $204.62, resulting in $822.95 interest paid over the life of the loan.
On the other hand, if you were to seek a $10,000 unsecured loan with the same terms, the interest rate might be 9.70% APR. In that case, your monthly payment would be $238.95, resulting in $2,807.19 paid in interest over the life of the loan.
In this scenario, getting a secured loan using your vehicle’s equity would save you $1,984.24 in interest over the life of the loan! That’s money you could be putting towards other important things in your life.
What would you do with an extra $30 in your pocket each month?
Call our Loan Experts at 855.MY CU LOAN (855.692.8562) if you have any questions or would like to apply for a secured loan using the equity in your vehicle.
*APR = Annual Percentage Rate