Two years ago, and straight out of college, I bought a used car privately (from an acquaintance, without going through a dealer). I needed the cash quick to make the deal, so I took out a “personal loan”, unsecured. This means I hold the title to the car (which I wouldn’t have if I’d gotten an auto loan), but the bad news is that I pay exorbitant interest rates on this loan, since the car wasn’t recognized as collateral.
Is there any way to “go back” and refinance the personal loan at least in part as an auto loan? In other words, can I put the car up for collateral in order to get a better interest rate?
I have pretty good credit (around 750) and have never missed a payment. I just don’t want to have paid twice the loan amount in interest by the time I’m done.
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Your bank or credit union can make a loan using your car as collateral. The amount that they will loan will be based on your credit and the current value of the car. You may be able to do this at the bank where you have the personal loan, or you may do it at another bank or credit union.
No and the rate will be even more most likely. Sorry
No. A car loan is a loan for a specific vehicle. A loan to pay off debt is a personal loan.
You may be able to get a new personal loan at a lower interest rate and transfer the debt to a new loan but you can’t get a car loan unless you are buying a car. You aren’t buying a car, you are paying off old debt.