Auto Equity Loan: Turn Your Car into Fast, Flexible Cash
Tap Into the Value of Your Vehicle
Need cash quickly? An An auto equity loan lets you borrow money using your vehicle as collateral, giving you access to funds for emergencies, home upgrades, medical expenses, or even a dream vacation. If your car is paid off—or you’ve built up equity—you can borrow up to 125% of your vehicle’s value, often at a lower interest rate than unsecured personal loans.
What Is an Auto Equity Loan?
An auto equity loan is a secured loan where you use the equity in your vehicle as collateral. The loan amount depends on how much equity you have—calculated as the value of your car minus any outstanding auto loan balance. You continue to drive your car while you repay the loan, and approval is typically faster and easier than traditional loan options.
What is Vehicle Equity?
Vehicle equity refers to the portion of your car’s value that you own outright. You can calculate it by subtracting your car loan balance from the current market value of your vehicle.
Example:
- Car value: $12,000
- Loan balance: $4,000
- Equity = $8,000
If your vehicle has equity, you may qualify for a vehicle equity loan or auto equity loan to tap into that value.
Key Benefits of an Auto Equity Loan
- Access Up to 125% of Vehicle Equity: Borrow more than your car’s current equity if qualified.
- Lower Interest Rates: Secured by your car, this type of loan offers a lower rate than most unsecured personal loans.
- Flexible Use of Funds: Cover medical bills, consolidate debt, plan travel, or manage emergencies—no restrictions.
- Extended Loan Terms: Choose a loan term up to 7 years with affordable monthly payments.
- Fast Approval Process: Quick application and funding turnaround.
What Are the Interest Rates on Auto Equity Loans?
Interest rates on auto equity loans are typically lower than those on unsecured loans because the loan is backed by your vehicle. Rates vary depending on:
- Credit score
- Loan amount
- Loan term
- Type of lender (credit union, bank, or online)
At OAS FCU, we offer competitive auto equity loan rates that are often better than what you’d get from high-interest credit cards or auto title loans.
What Credit Score Is Needed for Auto Equity Loans?
Most lenders require a minimum credit score of 600–640 for an auto equity loan, but approval also depends on:
- Income and employment status
- Debt-to-income ratio
- Vehicle condition and age
- Amount of equity
Borrowers with good credit (700+) may qualify for the best loan rates and larger loan amounts. Be sure to check your credit score and review your credit report before applying.
How Auto Equity Loans Work
- Check Your Equity
Estimate your car’s current market value and subtract your loan balance. If you owe less than the car’s value, you have equity. - Apply Online or In Branch
Complete a simple application at OAS FCU. We’ll review your credit history, vehicle title, and income. - Receive Your Funds
Once approved, get cash deposited directly—spend it on what matters most. - Repay the Loan Over Time
Make consistent monthly payments based on your chosen loan term.
Planning Tools
- ✅ Loan Calculator – Estimate your monthly payment.
- ✅ Affordability Calculator – Know how much you can comfortably borrow.
Note: Calculators are for informational purposes only. Loan approval is based on your credit score, income, and ability to repay the loan.
How Do I Choose the Best Car Refinance Loan?
If you’re considering refinancing your original car loan, follow these steps:
- Review your current loan terms, balance, and interest rate
- Compare loan offers from multiple lenders, including credit unions
- Look for a lower interest rate and better repayment terms
- Factor in fees, including any prepayment penalties on your existing loan
- Use a loan calculator to estimate savings over the life of the loan
Tip: Refinancing with an auto equity loan may offer larger loan amounts and better flexibility if you’ve built equity in your vehicle.
Auto Equity Loan vs. Auto Title Loan
| Feature | Auto Equity Loan | Auto Title Loan |
|---|---|---|
| Ownership Requirement | Car can still have a loan balance | Must own car outright |
| Loan Terms | Up to 7 years | Often due within 30 days |
| Interest Rates | Typically lower interest rates | Typically higher interest rates |
| Loan Amounts | Based on equity; up to 125% available | Smaller, usually a fraction of car value |
| Risk | Repossession if payments aren’t made | High risk of repossession |
Who Should Consider an Auto Equity Loan?
This type of loan is ideal for individuals who:
- Need quick access to cash
- Have good credit or solid credit history
- Own a vehicle with substantial equity
- Want a lower rate than a credit card or unsecured personal loan
- Prefer longer repayment options
How to Apply for an Auto Equity Loan
✅ Review Your Credit: Use free tools to check your credit score and address any issues.
✅ Estimate Vehicle Value: Use Kelley Blue Book to find out your car’s worth.
✅ Compare Loan Offers: Always compare loan offers from credit unions, banks, and online lenders.
✅ Submit Application: Provide details like income, employment, and car information (make, model, mileage).
✅ Accept the Loan Offer: Review the loan agreement, interest rate, loan term, and monthly payment.
✅ Receive Funds: Once approved, get an auto equity loan deposit directly into your account.
Where to Get an Auto Equity Loan
- Credit Unions – Like OAS FCU, offer competitive auto equity loan rates, personalized service, and better terms.
- Online Lenders – Convenient, fast applications but may lack personal support.
- Traditional Banks – May offer vehicle equity loan products, but often with stricter credit requirements.
Alternatives to Auto Equity Loans
- Personal Loan – No vehicle as collateral, but expect higher interest rates.
- Home Equity Loan – Larger loan amounts, but your home is at risk.
- Credit Card – Flexible, but high interest rates can quickly add up.
- Line of Credit – Reusable credit but may require higher credit scores.
Is This the Right Loan for You?
An auto equity loan can be a smart choice if you have equity in your vehicle and need cash quickly. With lower rates, flexible terms, and quick access to funds, it’s a solid alternative to high-interest credit cards or auto title loans. Just ensure you understand the risks—especially the potential for losing your car if you fail to repay the loan.
Why Choose OAS Federal Credit Union?
At OAS FCU, we provide more than just competitive loan rates. We deliver:
- ✅ Transparent Terms – No hidden fees or surprises
- ✅ Quick Approvals – Apply and get funds fast
- ✅ Supportive Member Service – Personalized financial guidance
Ready to Get Cash Using Your Car?
Don’t let your car’s value sit idle. Apply for an auto equity loan with OAS FCU today and take control of your financial future.
Frequently Asked Questions (FAQ)
Q: Can I get an auto equity loan if my car isn’t fully paid off?
A: Yes. As long as you have positive equity in your vehicle, you can qualify.
Q: How much can I borrow?
A: You may be eligible to borrow up to 125% of your vehicle’s equity.
Q: Will this impact my credit score?
A: Yes. As with any loan or credit card, lenders will perform a credit inquiry, and missed payments can affect your score.
Q: Is an auto equity loan better than a title loan?
A: Generally, yes. Auto equity loans offer longer terms and lower interest rates, making them more affordable.
Is an auto equity loan a good idea?
Yes, if you need quick cash and have equity in your car. It offers lower interest rates than credit cards or unsecured loans, but you must be sure you can repay it to avoid risking your vehicle.
How long are auto equity loans?
Auto equity loan terms typically range from 12 months to 7 years, depending on the lender and how much you borrow.
Can you get an equity loan on a vehicle?
Yes. If your car is paid off or worth more than what you owe, you can borrow against its equity using it as collateral.
Do you need good credit for an auto equity loan?
Not always. Some lenders approve borrowers with fair or average credit, but a higher credit score gets you better rates and terms.
Why should I apply for a Best Egg Vehicle Equity Loan?
Best Egg offers fast approvals, competitive interest rates, and flexible terms, making it a convenient option for turning your car’s equity into cash.
Disclaimer:
Loan approval is subject to credit evaluation, income verification, and vehicle valuation. Terms and conditions apply.
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As a seasoned loan and credit card expert, I have an in-depth understanding of the financial industry, specializing in helping individuals and businesses navigate the complexities of borrowing and credit. My expertise spans across various loan types, including personal, business, auto, and mortgage loans, as well as credit card products, enabling me to provide tailored advice and solutions. With a focus on optimizing financial health, I guide clients in making informed decisions that align with their goals, ensuring access to the best terms, rates, and strategies for managing credit and debt effectively.
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