How A Vasco Client Leveraged Their Luxury Car Into Holiday Renovation Financing
Picture this – It’s been 10 years since you last remodeled your home and it’s almost the holiday season. The last big purchase you made was the 65’ OLED TV which the kids don’t like anymore because it’s missing a few features, and that was back in 2018. The whole family, including you, is now yearning for a change, for that fresh new feeling which was long lost in the dated furnishings. After careful consideration, you realize that even though this is a top priority work, you simply don’t have the cash required to carry it out right now. Even though you have enough assets which can cover the costs 10 times over, you aren’t in a position to liquidate it.
Sounds wrong, doesn’t it? Even after having enough assets to liquidate, you can’t seem to have that cash ready at hand. Meet Dave, who was in a similar position, but had a smart way out. What, and more importantly, how did he do it?
The “Long Overdue” Renovation
Dave had been thinking about renovating his ancestral home for quite some time. However, everything seemed to go against his will. When he had cash available with him, he had no time to get the renovation done as he was neck-deep in his company projects. Overlooking different departments for the smooth functioning of an MNC can be tough. Then the pandemic struck. This seriously impacted the way how Dave managed his expenses and led to some of the cash being spent away, leaving too little for any kind of renovation to take place. Not to forget the different restrictions in place during the pandemic. Now when things are better and people are out working, as usual, Dave finally started thinking about the much-needed renovation. The issue of cash was still an issue, but he was clear in his plans. He started asking people around him easier ways to get some disposable cash at hand. “Pawn Shops,” advised some friends; “Sell your car,” said others. But none of these ideas struck a chord with him as he simply wasn’t willing to part ways with something which reminded him of his struggle to get to the financial position he is currently enjoying.
“How about a secured loan?” Dave’s wife suggested. Dave could try getting a loan against their Cadillac while it’s still not being used as much and use the money to fund the renovation. This idea pleased Dave, as the income was steady, and he would have no issues paying off the loan amount in the stipulated time. He started searching more about secured loans and found Vasco.
Secured Loans – The Easier Way to Finance
Secured loans, as the term suggests, are types of loans given against some security, be it a house or a car or any other valuable like gold or silver. In the case of a house, it’s called a mortgage and it’s called an auto loan in case the security is a car. People hear the word “mortgage” often but sometimes fail to realize that it’s a kind of secured loan. The lender, in this case, the bank, will value the property that you’re willing to keep as security and try to determine the maximum loan amount which can be disbursed.
Looking into secured loans, we see that it has far more advantages than traditional unsecured loans and are much easier to get.
Good Credit Scores are Not a Prerequisite
Credit scores seem to be a “do all or end all” situation in the case of most loan applicants as banks have a minimum credit score requirement in order to process an unsecured loan. Given that it’s an issue of safety for banks when they give out a loan without security, but as lenders, banks cannot always judge whether an applicant will default on a loan or not. It is entirely feasible that an applicant with a high score defaults on their loan.
In the case of a secured loan, credit scores are typically not an issue as there is security attached to the loan amount. This means even someone with a low credit score can apply for a loan and have it processed. Simply put, a credit score is no issue for acquiring a secured loan.
Easier Checks and Documentation
Secured loans are much easier to get as the applicant must put up collateral against the loaned amount, because of which the lenders or banks do not have to carry out any kind of background checks about the credit history or ask for any kind of unnecessary documentation which can lengthen the application process. Since secured loans already have security against the amount offered, they offer lower interest rates, much to the benefit of the applicant since the lenders or banks tend to lose less compared to unsecured loans, and that the borrowers are much more inclined to pay back the loans.
Easily Available from Many Lenders
Secured loans are a viable alternative to a bad-credit loan, as these loans charge very high-interest rates. Secured personal loans can be acquired from banks, credit unions, or online lenders, but typically have an origination fee and starting rate. Federal credit unions are generally as trustworthy as they get, but becoming a member can be a hassle, or may not be easy at all.
Safe and Better Than Unsecured Loans
Unsecured personal loans may look to be a better option although they again require a high credit score. Also in most cases, there are recurring monthly payments until the loan amount is paid back with interest or until the loan term is over. This can mean a significant amount of monthly salary goes into paying a loan and since the loan rates are higher, this can burn a hole in your pocket. These higher interest rates can be enough to deter someone from applying for these loans. Not to forget that banks typically have specific repayment terms which must be adhered to. These unsecured personal loans can be paid back by using the services of a debt consolidation firm.
Credit cards are again a type of unsecured loan where the amount that you spend using the card is billed at the end of the month. But with a credit card, it might be difficult to keep track of the money spent and may lead to mindless spending, not to mention the absurd interest rates charged by the banks.
There are secured personal in which case the security is your savings account. These loans are acquired backed by a certificate of deposit. In case the loan has defaulted, the bank can usurp the money in your account. However, the loan options that provide the most liquidity are auto loans or car loans. Auto loans cover all vehicular transport, be it motorcycles, cars, boats, and more. Auto loans have lower rates compared to other secured loans as the banks or the lender already has the security in terms of your car. It is a fixed-rate loan that can be used to quickly liquidate your assets which may otherwise lie unused in a garage. Auto loans require no creditworthiness or a credit report, and the eligibility extends to everyone who owns a car.
Vasco Assets Turn Your Dreams Into Reality
At Vasco Assets, we realize how much a renovation can mean to a family. A home-improvement project can improve the general environment, and we are here to help you realize that dream of yours. Vasco Assets promise to give you the best valuation of your possessions and suggest you the best when it comes to personal finance. Leave it to us to get you the best loan offers for your luxury car. Not only cars, but we also provide the best loan offers for home equity loans and HELOC. Visit us in Orange County, CA, or connect with us online and we’re sure we can get you hooked to offers you can’t refuse!