Serving Jesus
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Very unlikely. Car loans are risky loans, anyway. If you default on the loan the car is usually not worth what you owe, since they depreciate so quickly. However, if you refinance through your bank or credit union (especially a credit union), you might be able to get a small cash loan at the same time you refinance your car. |
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Isle Flyer
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If you have equity in it, yes you can. I have done this before. If it is worth a good deal more than the blue book value, or the percentage of blue book value that a bank or lending institution will lend, yes you can.
You can even take a paid-for car and get a loan for it.
Make wise choices in this matter. |
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Spud55
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If you owe less than the car is worth you can. It's not really a good financial move but you can do it. You'd have to go through a bank or a credit union and ask for a loan using your car as collateral. |
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Iknowyouseeit
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Yes |
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scooby doo
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No sir! Unlike homes, cars value don't appreciate! They depreciate! |
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Summer
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Your answer is YES, depending on the car and its value. If you owe, say, $5000 on the car and it's worth $10000, you may be able to get a loan for the full value.... or up to 80% of the value ($8000). Again, it's kind of tricky because a lot of cars do depreciate in value. If you have a foreign car (Subaru, Toyota, Nissan, some Hondas), they are the only cars right now keeping their value in the US. All Subarus are keeping their value, Toyota trucks and SUVs (Tacoma, Tundra, and Sequoia) are actually retaining their value the best along with Nissan trucks and SUVs.
From my personal experience, we had a show car valued at $20,000 (a 1991 Honda Civic. No kidding!) that we only owed $6000 on. We had some bills come up and we needed to get squared away. We got a $4000 loan on the equity in the car, bringing our loan amount to $10,000. I have a friend that works for a car dealer, and whenever he buys a new car for himself (at the auctions usually cause he can get them cheap), and get the loan for the full KBB value so he's got some extra money tucked away.
Anyhow, your answer is yes. But, be sure that the car is 1. worth what you are trying to refinance it for and 2. your car is going to hold its value. Otherwise, the loan officer may just laugh at you.
Good luck! :) |
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matt b
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No but you can apply for a loan and use the vehicle as collateral, provided is has some equity in it. If you owe more than it's worth, then forget it. |
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JUNONNKI
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call the bank and see |
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cjordan23
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cash..no |
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Ron Mexico
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Not usually. Car loans are higher risks loans for banks since the underlining asset depreciates. |
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IK
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Yes, I have done this on more then one occasion. The trick is your vehicle needs to be worth more then the book value in order for the bank to give you money back. I purchased a vehicle and was able to walk with $10,000.00 all because the vehicle was way below book value.
Good Luck |
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Munya Says: GFOD
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It depends on the value of the car at the time of the refy. And the lender. Example: I "own" a 2006 Hummer H3, fully loaded. I got a super-great deal on it, 19,999 out the door. And I put down 6,000. The book value of my vehicle is $22,900. So I have "equity" in my car of 9 grand. So I'm going to refy with a different lender and refy 22,900 and walk away with 9k.
Not that I'm doing that, but I'm just saying. And I don't own a Hummer so you haters, get off ma back. |
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clare6968
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no- cars depreicate whereas house apreciate. |
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Slim Whitman
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Most lenders will loan up to the Blue Book value.
for example if you OWE $10,000 on the vehicle and it has a book value of $15000 you could get $10000+5000..
They pay off the first note, then the balance is yours.. |
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wjvv
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Sure, if the car is worth more than you are financing. |
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shortyshortstuff
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yes |
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bellereine
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Yes, there are lenders (you have to look). However, you have to have paid more on the loan than the car is worth. You can "refinance" your car for the value of the car. Since cars depreciate (especially new ones) quickly, you had to have paid more than you average loan amount to pay more than your car is worth. It also depends on what state you're in. Not all states allow this. Ask local lenders in your state. |
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marvin
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Not likely. Rarely is a car worth more than you owe on it. The problem with refinancing a car is, if it's not worth what you owe on it then you have to produce the cash to make up the difference. Normally not a good idea. Look at all the numbers before jumping into this. Will re-fi really cut your cost? Will you actually save money? Could the cash you have to pay be better off applied to the existing loan? Think about stuff like this. |
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pknutson_sws
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no, sorry. The car is used as collateral against itself. You may qualify for a personal loan though that would cover the cost of the car plus some extra cash back. |
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snvffy
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That's an expensive kind of loan. |
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kchick8080
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no |
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Brian M
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In some cases yes. There must be more equity in the car today than the balance of the existing loan. The lending institution must be willing to increase the finances amount above the current loan. Having these two conditions met and assuming you have reasonably good credit and a steady income you should be able to get cash back refinancing a car. |
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Susan V
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You can get money back if you are credit-worthy and especially if you are paying off another debt/consolodation. It helps to have a good relationsip with your banker. It's my understanding that the new loan will not exceed the current value of the vehicle. |
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xaiver hybridalots
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yes |
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Karrien Sim Peters
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All these peoples answers are wrong so far. Lets say you own a new mercedez 500 sel. It is paid for. If you get a loan on it you can almost get 20k. That money is yours. Now is it a home? No. Does the car get 20k down the road no. But you can get money back out of any vehicle that you have paid into it as long as it doesn't exceed the blue book value. Something most borrowers on here must not have. |
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Steve D
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All the previous answers that say "no" are assuming that you maxed out the financing in the first place and already owe more than the car is worth. If that's the case, then "no" is the correct answer. This is a common situation, because cars tend to depreciate faster than their loans get paid off, but it's not the only possible situation.
If you've paid down the original loan to the point where the car is worth more than you owe, then certainly it's possible to get cash back on refinancing. I've done it. It will depend on the condition of the car and on the amount of equity you have in it. If you have a car that's realistically worth $10,000 and you only owe $5,000, and if the car is in good shape and not too old, then a bank or a credit union might refinance it for, say, 70% or $7,000. Your original loan would be paid off and you would get $2,000 in cash. |
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Michael F
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Bad idea - this would be the same thing as borrowing money on credit at a fairly high interest rate. the companies that do financing are using the car as collateral on the loan - this is why they can repo it if you don't pay your monthly amount. You don't actually own the car until it is all paid off.
The company cannot loan money when there is no collateral - so you can't borrow more than the value of the car. You need to head to a bank for a small loan there. |
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Spenge
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If the car that you are trading, is worth more than the car you are buying, then maybe you can. But most people owe more than their car is worth. It's not like buying a home. |
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Patti T
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why would you want to do that? |
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David W
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You can as long as the amount you are asking for in the loan is what the car is worth or less. Lets say your car is worth $10,000 yet you only owe $3000 on it. You could get a new load for say $6000 and pay off the old one and pocket the rest.
It is a really bad idea though. |
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world traveler
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highly unlikely. Unless your car were fully paid off, in which case you might be able to borrow money against it. |
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