Getting a loan without collateral?

[illusion88]

I am in the market to buy a used car, and I am thinking about getting a loan for $5000. I have been looking at places online and they all ask for collateral. I don't really own much. Especially anything that would be worth $5000. What do you usually use as collateral? What might I use? Does the car I am buying count?

 

[Mermaidman]

Lenders seldom make loans for older cars (>4 yr, I think), because they're pretty much worthless as collateral. So, you're going to end up with a higher interest unsecured loan.

Or you can try Capital One and buy a slightly nicer car

 

[illusion88]

Originally posted by: Mermaidman
Lenders seldom make loans for older cars (>4 yr, I think), because they're pretty much worthless as collateral. So, you're going to end up with a higher interest unsecured loan.

Or you can try Capital One and buy a slightly nicer car

Well with the loan I would have $10k to spend on the car total (including tax and registration and all that, so more like 9.5k). For 10k I should be able to get something pretty decent. I just need the extra 5k to get it done.

 

[Mermaidman]

i c

I still think Capital One is a good bet. Their minimum loan is $7500.00, so you can buy your $10K car, then pay an extra $2500 with the first loan payment. Have you already checked with your bank?

 

[nonameo]

Is this something you need right away? If not, why not save the money?

 

[HyTekJosh]

There are no asset loans but that may just be for homes not autos. Years ago, I used Capitalone for an auto loan and they did not ask for any collateral.

 

[illusion88]

Originally posted by: nonameo
Is this something you need right away? If not, why not save the money?

yes. I crashed my car and I need a new one. I would rather buy a $10000 car then a $5000 car.

 

[aswedc]

You could always go to a dealership. They'll get you a better loan then you would be able to on your own.