Personal asset lenders will advance money against fully paid up motor vehicles. Motor vehicles are not limited to cars, but can include trucks, boat, motorbikes and all other “motorized” assets.
Motor vehicles are a popular asset used in order to raise finance as a lot of people have motor vehicles. In order for the lender to advance the funds, the following will be necessary:
- You will need to be the registered owner and title holder of the vehicle
- The vehicle must be fully paid up
The lender will keep possession of the vehicle for the duration of the loan, so you will need to ensure that you have alternate modes of transport.
Things that will affect the value of the vehicle are:
- The year model of the vehicle
- Mileage or hours in the case of a boat engine
- Make and model of vehicle
- Condition of the vehicle
- Service history of the vehicle
- Whether spare keys are available or not
- How popular the make of the vehicle is
- Trade value of the vehicle
Typically a lender will advance 60%- 70% of the trade value of a motor vehicle.