Cars and houses are common assets that are used by people to secure loans. The equity in your financed car can either be negative or positive equity. It is positive equity if the worth of your asset is higher than the amount you owe. It is negative equity if the worth of your asset is lower than the amount you are owing.
What is Equity in My Car?
The equity in your car can be done by subtracting the amount you owe from the current worth of your car. Now the question is how to know the worth of your car. you can determine the worth of your car by using some online resources where you will enter certain information about your car, you will need to enter the model, make, year, and mileage of your car. once you know the worth of your car, you can determine the equity in your car based on how much you are owing.
How to Determine the Equity in Your Car
You can determine the equity in your through two methods.
- Find Out How Much You Are Still Owing on the Loan: knowing how much you are still owing on your car title loan is not difficult. You can get to find the amount you owe via your payment history or through your mail or monthly statements. If you are unable to know the amount you owe via these means then you would need to contact your lender or dealer.
- Find out How Much Your Car is Worth: The market price is not always stable; you need to find out how much your car is worth by getting an appraisal at a car dealership or by using an online appraisal tool.
Appraisal by a Car Dealership
You can visit a reputable and trustworthy used car dealership to know the current worth of your car. Your car will be assessed and inspected based on its cosmetic and structural condition. This will help them to determine the trade-in value of your car.
Online Appraisal Tool
You can get to use this tool on the internet. You fill out the questionnaire to receive an accurate estimate of your car. you will be required to fill in the year of your car, the body style, mileage, make and model.
After inputting these details, you will get an estimate of what your car is worth.
- Now that you have an idea of how much you are owing on the title loan and what your car is worth. You have half of the job done. What you do next is to do the math. Subtract the value of your car from how much you are owing, what you get is the equity in your car. if the result is negative, this means you have negative equity and if it is positive, it means you have positive equity.
- Use the Equity in Your Car to secure a Car Title Loan: If your car is worth more than the amount of money you are owing, then you have equity in the car and may want to explore to see how much loan amount you can get. If you are not owing on the car, then the worth of your car is your equity and you can proceed to use the car to secure a car title loan.
A car title loan is one of the fastest ways of securing loans, especially in emergencies. You can apply for the loan and get it the same day. There are no credit checks and the interesting part is that you can apply and get the funds needed online without leaving the comfort of your home or office. It is fast and easy, and the terms can be negotiated to suit your financial situation.