What is an Auto Secured Loan?
An auto secured loan is a type of loan in which you use your personal vehicle as collateral. With car collateral loans, you pledge your vehicle to a lender as a security measure in exchange for borrowing money.
At Tower Loan, rather than financing dealership automobile purchases, we offer loans where your existing vehicles can be used as collateral.
Suppose you owe another lender on a vehicle. In that case, Tower Loan can pay that lender off and provide money to you and use that vehicle as collateral on a personal loan. With auto secured loans, we can often offer larger loans than we would without a collateral commitment.
How to Apply for an Auto Secured Loan
You can apply for an auto secured loan from Tower Loan in a few ways.
- Apply Online
- Complete your auto secured loan application entirely online by clicking here! For those that qualify, you may be able to even sign your documents electronically & have the funds deposited into your checking or savings account without ever having to step foot in an office!
- Apply Over the Phone or In Person
- We also take pride in offering top notch customer service at our physical branches near you. With over 250+ locations, you can use the branch locator below to find the address or phone number for the branch nearest you and apply either in person or over the phone!
Auto Secured Loan Application Requirements
- Applicants must be at least 18 years of age (19 in the state of Alabama)
- Must reside in one of the areas Tower Loan services
- Must be employed or have a regular source of income
- Must have a valid email address and a savings/checking account
The Benefits of Secured Car Loans
There are several reasons to consider auto-secured loans when you need to borrow money.
Larger Loan Amounts
- When you use your vehicle as collateral, you reduce a lender’s risk and enable them to offer larger loan amounts compared to unsecured options.
- A larger loan could help you cover the full cost of a significant, urgent expense.
Easier to Qualify
- It is often easier to qualify for an auto secured loan than an unsecured loan, especially if you have less-than-perfect credit.
- The commitment of car collateral loans reassures your lender that they will not lose money by loaning it to you.
Lower Interest Rates
- Another potential advantage of collateral loans on vehicles is lower interest rates. The larger the loan is, the interest rate typically decreases.
- With less interest to pay, you can save money over the lifespan of your loan and make your monthly payments more manageable.
Are you ready to apply for a loan online?
We have a range of online loans and borrowing options to chose from
Have questions?
Contact your nearest Tower Loan location today.
Our dedicated team members are here to serve and help every customer in a professional manner.
How Does an Auto Secured Loan Work?
A secured car loan works by using your vehicle as collateral and the lender placing a lien on the automobile until the loan is paid off. In exchange, you may gain access to a larger loan with a lower interest rate and easier approval.
Still owe money on your vehicle? No worries, we can still look at potentially paying off the other lender while also providing you with the loan you need.
If you have a free and clear title, please drive the vehicle to a local branch and bring the title so we can inspect your vehicle’s condition and take photos. If you still owe money on the car, we will need to obtain a 10-day payoff from the lender currently holding the lien and obtain a copy of the title if possible.
When Should You Consider Getting a Secured Car Loan?
Car collateral loans are helpful if you need a large loan amount, have difficulty qualifying for a loan, or want a lower interest rate.
If you have a small balance remaining on your vehicle's original loan, we may be able to use that vehicle as collateral and offer you a larger loan with a more affordable monthly payment. At Tower Loan, we try to keep the term relatively low compared to a new automobile purchase. Many of our customers who get auto secured loans use them for debt consolidation, home improvements, and emergencies.
Why Choose Tower Loan?
Tower Loan has been helping our customers since 1936. Since all of our loans have equal installment payments, there’s no worry with getting lost in revolving debt. Tower Loan has over 260 locations to serve you locally. We take pride in servicing our customers with the best customer service around. We listen carefully to your needs to make sure we take the worry out of obtaining credit. You can count on Tower Loan to continue our customer services just as the date we first met. We specialize in taking care of all of your financial needs.
What to Expect With Tower Loan?
Our interest rates & APR vary based on a variety of factors. Once approved, your loan specialist will go over this along with term options that best fit your lifestyle. Here is what you can expect for the process:
1) Complete an application. This can be done online by clicking here or you can call or visit one of our local branches near you. We’ll request some of your personal, financial, and employment information to provide an immediate decision on your loan application.
2) Verify your information. If you completed your application online, you may be able to answer a few identity questions to do this. Otherwise, you’ll be visiting the closest office near you to have a loan specialist verify your identity, income, and collateral (if applicable) as well as discuss your loan options.
3) Sign and receive your funds. For the online loans, after choosing your term options, you can sign your documents electronically, then expect the funds to be deposited into the account you’ve provided. If in the office, you’ll review and sign your loan documents there, then will be provided a check with the proceeds from your loan. Then, you’ll be all set!