LuxLoc: How To Get The Most Out Of Your Exotic Car With A Car Collateral Loan
Jennifer was a single mother who had been recently struggling to make ends meet. As a techie, she had a well-paying job in IT – she was part of the core AI development team at her company – but was hit by a wave of recent tech layoffs. She was forced to take a pay cut and continue, or risk being out of a job. About a year back, her 7-year-old son was diagnosed with a chronic illness and medical expenses had increased. If only she could get a second stream of income, she would be able to set her financial priorities straight. Traditional funding options like personal loans were a no-no since she would be paying more than she would get, and with her less-than-stellar credit score, her chances of getting a good loan deal were bleak. While a secured loan was an option, she possessed no assets that banks would consider collateral.
That’s when she stumbled upon a luxury asset lending product called LuxLoc from Vasco Assets, a secured line of credit perfect for her situation. The more she read about it, the more convinced she was that it could solve her financial difficulties and help her manage her finances. She had the perfect “asset” to pledge – something that her bank had rejected to be put up as collateral – and she decided to contact the good offices of Vasco Assets.
How do you Leverage a Car Collateral Loan?
Jennifer owned a 2015 Range Rover Autobiography she had bought a couple of years back when she was able to easily afford the car, thanks to her generous salary.
When she heard about a car collateral loan, she thought she could pledge the car as collateral and get the loan since she did not have an excellent credit history. Her recent expenses had a severe impact on her creditworthiness.
A car collateral loan, also known as a car title loan, is a type of secured loan where a borrower can use their car as collateral to secure the loan. The lender places a lien on the car title, and the borrower must give up a copy of the car title to the lender until the loan is paid off.
Traditional Lenders may not Accept an Exotic Car as Collateral
However, when Jennifer approached a few banks for loan offers, she discovered that some banks did not accept her car as collateral. According to Jennifer, the banks that did accept the car offered loan amounts between 15% to 30% of the car’s retail value, which was less than what she’d hoped for. Also, the interest rates on offer were pretty high.
Moreover, traditional lenders such as banks and credit unions may not offer exotic car collateral loans or have strict approval requirements. As a result, people may need to explore alternative lenders, such as specialized exotic car loan providers, which can be time-consuming and involve higher interest rates and fees.
The decision to accept an exotic car as collateral depends on the specific policies of the bank and the value of your exotic car. Some banks offer secured loans that use a luxury car as collateral, but they may have strict eligibility requirements. They may not offer as much flexibility regarding loan terms and interest rates as specialized lenders. Additionally, the loan amount may be limited by the value of the car and the borrower‘s creditworthiness.
It’s worth noting that banks typically have a more conservative approach to lending and may not be as familiar with the value of exotic cars compared to specialized exotic car loan providers.
However, just as her dreams of getting a traditional loan were dashed, she heard about Vasco’s LuxLoc from a friend who was a beneficiary of the loan. LuxLoc was a secured line of credit backed by Jennifer’s Range Rover.
What is a Secured Line of Credit?
A secured line of credit is a type of loan that allows a borrower to access a revolving credit line by using an asset, such as a car or a property or business infrastructure, as collateral. The borrower can withdraw funds up to a predetermined limit, much like a credit card, and repay the borrowed amount over time with interest. The loan is secured by the asset, which means that if the borrower defaults, the lender can seize and sell the asset to recover the funds.
The advantage of a secured line of credit is that the interest rates are often lower than those of unsecured loans, such as credit cards or unsecured personal loans because the lender has the security of the collateral. This means borrowers can access a larger credit limit and pay lower interest rates than other borrowing forms. Also, the borrower pays interest only on the amount drawn, not the entire credit limit.
Secured lines of credit are commonly used for business purposes or to finance significant expenses, such as home improvements or education. They offer more flexibility than traditional loans since the borrower can draw on the credit line as needed rather than taking out a lump sum upfront.
How LuxLoc is a better Secured Line of Credit
While many traditional lenders like banks offer a secured line of credit, they usually require a specific type of assets to be pledged as collateral. However, LuxLoc is a revolutionary new financial product that unlocks the value of your luxury assets to help you tide over financial needs with ease.
Luxury assets are items we buy or inherit that, for most people, only have sentimental value or as a status symbol. Some people will invest in certain types of luxury assets as an investment for the proverbial rainy day. Think heirloom jewelry, a gold coin collection, a painting by a renowned artist, designer watches and purses, or an exotic car and a yacht. However, most of us need to realize that these items have an inherent value that can be leveraged to obtain loans. Such lending that uses luxury assets as collateral is called “luxury asset lending.”
As a multinational luxury conglomerate, Vasco Assets has been designing and offering novel financial products for people with a wide range of needs. The philosophy behind Vasco’s products is to unlock and leverage the intrinsic value of luxury products to help people in times of need. LuxLoc is a continuation of this legacy.
The Many Benefits of LuxLoc
LuxLoc offers a range of fantastic benefits in addition to providing regular cash withdrawals.
Benefit of Lower Interest Rates
One of the significant benefits of LuxLoc is the lower interest rates available due to the security of a luxury asset. This means you can enjoy a reduced interest rate on your loan term.
Reduced Barrier to Entry
Traditionally, financial products of this nature were only available to the ultra-rich, with high loan amounts and entry barriers. However, LuxLoc has significantly reduced the entry barrier, with loans starting as low as $10,000, making it more accessible to the broader market.
No Impact on Credit Score
Many people are unaware that every loan inquiry affects their credit score, and multiple inquiries can harm creditworthiness. However, LuxLoc does not require a credit score check, nor is the transaction reported to any Credit Bureau, resulting in zero impact on your credit history. A bad credit score won’t come between you and your financial dreams.
Risk Limited to Losing a Nonvital Asset
With a luxury asset lending product like LuxLoc, the risk is limited to losing a nonvital asset if you cannot repay the loan. Unlike traditional secured loans such as a home equity loan, where you put up your primary residence as collateral, LuxLoc requires only a luxury asset. This means that if you default on a home loan, you risk losing your primary residence, whereas, with LuxLoc, you only stand to lose the luxury asset that secures the loan.
Simplified Application Process
LuxLoc offers a streamlined loan application process, ensuring you can access the money you need quickly. The simplified approval process means that you can access funds promptly without the hassle of extensive paperwork and documentation.
No Hidden Fees
When it comes to traditional loans, there are often numerous hidden fees that borrowers must contend with, such as processing, origination, transaction, account closing, and annual fees. However, at Vasco Assets, we pride ourselves on transparency and simplicity. We only require a small, one-time, upfront maintenance fee and nothing more. This means you can rest assured that there are no hidden fees or costs to worry about when choosing LuxLoc.
How Jennifer’s Exotic Car Helped Tide Over her Financially Challenging Times
Jennifer decided to get her Range Rover Autobiography valuated at Vasco. She was pleasantly surprised to see car experts take a look at her car rather than the bank staff, who had little to no knowledge of luxury cars. The result was a much higher valuation that Vasco offered her. Looking at the detailed valuation report, she was ecstatic. She silently thanked her good fortune as she accepted the valuation and decided to go with the loan approval process.
Since there were no credit checks, all she had to show was the car’s ownership papers, and within a couple of hours, she was done with the paperwork. She received the check immediately upon handing over her car keys. She went home happy that her financial worries were ending and she could plan for her future confidently.