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Can I Refinance My Car?

LoanIt is one of the elements of what many know as the American Dream – car ownership. For most, owning a car means borrowing money and carrying an auto loan. Just as someone can refinance a home mortgage, it is possible to refinance a car loan as well. Car refinancing is not for everyone, and there are a few cases where a person’s car disqualifies them from doing so. If you are the owner of any of the following, you cannot refinance your auto loan.

 

  1. An ancient beauty. Refinancing a car is nothing like refinancing your home. Real estate rules do not apply to the refinancing of an automobile. The instant your vehicle comes off of the lot, it begins to depreciate. If you have a very old vehicle, lenders do not see it as a viable asset worthy of lending. Another consideration is the loan-to-value ratio. An older car is normally worth less and the potential to become upside down in a loan are much higher. As a result, lenders will most often reject a refinance on an old vehicle.
  2. A salvaged car. If you have a vehicle that has a salvage designation on its title, forget it. Each state has its own criteria for what constitutes a salvage vehicle. Because of the salvage designation, the market value of the vehicle will be low. Again, lenders do not want to take the risk of refinancing a car with little value.
  3. A customized vehicle. If you have modified your vehicle or customized it in any way, a lender will not consider a refinance. Again, a customized vehicle, while worth money in a niche of the auto market, is worth far less than the same vehicle that has not been modified when considering a refinance.
  4. Commercial vehicles. A business vehicle is normally used much more than one for personal use. This use causes rapid depreciation of the vehicle. To a lender, the vehicle is not as useful as collateral as the same vehicle owned for personal use. It is highly likely that one would be rejected for an auto refinance using a commercial vehicle as collateral.

 

If you own one of these vehicles, you most likely cannot complete an auto refinance. What you may be able to do, though, is apply for a car title loan. If you are looking for emergency cash or trying to consolidate some debt with an auto refinance, you can still do so with a car title loan. You can apply online at Embassy Loans and complete your transaction within an hour. The process is quick and easy and can be completed entirely online. Call today for more information.



Embassy Loans is a leading provider of auto title loans since 2005

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Embassy Loans Inc. is licensed under the “Florida Consumer Finance Act” and as such Embassy Loans is exempt from any licensing requirements under the “Florida Title Loan Act” to the extent that any of Embassy Loans’ activities involve the making of a loan of money to a consumer secured by bailment of a certificate of title to a motor vehicle.

Monthly Interest Rates range from 1.5% to 2.5% (18% to 30% APR), with 15-18 Month Terms.

No Prepayment Penalties!

Embassy Loans uses “Title Loans” for advertisement purposes only and provides auto equity loans. Embassy Loans Inc. is licensed under the “Florida Consumer Finance Act” under Florida Statute 516 and as such Embassy Loans is exempt from any licensing requirements under the “Florida Title Loan Act” to the extent that any of Embassy Loans’ activities involve the making of a loan of money to a consumer secured by bailment of a certificate of title to a motor vehicle.

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Frequently Asked Questions

What is an Auto Equity Loan?

An auto equity loan, sometimes known as a car title loan or a car equity loan, is a type of loan that allows you to borrow money by using your vehicle as collateral. The loan is secured by your vehicle, meaning you agree to use the equity in your car to back the loan. 

What is an Unsecured Personal Loan

An unsecured personal loan is a loan that does not require collateral. Funds are provided based on your credit worthiness and your ability to repay. 

What Is the Credit Builder Program

The credit builder program is designed to help individuals establish or improve their credit score with the primary purpose of building a positive credit history through regular payments.

Can i have more than one Loan at a time?

Embassy Loans can only extend one loan at a time and it’s advisable to start with one and focus on making payments in a timely manner to prevent default.

What happens if I miss a payment?

Missing a payment can have negative consequences, including late fees, a drop in your credit score, and potential default on the loan. Consistent, on-time payments are crucial to benefit from the program.