Some Pros And Cons Of Ingersoll Auto Collateral Loans - Instant Loans Canada

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Some Pros And Cons Of Ingersoll Auto Collateral Loans

Dec 09, 2013

Obtaining auto collateral loans is a simple process, especially in Canada. To get an approval, you just need a clean title of your car, a Canadian driver’s license and a collision and comprehensive insurance on your vehicle. The process of getting auto collateral loans approved just takes about 30 minutes. Yet despite the streamlined process of these loans, it is important that you choose a company that has a good reputation so you won’t have regrets later on. It is also important that you know the pros and cons of Ingersoll auto collateral loans so that you know what you are putting yourself into.

The Pros And Cons Of Ingersoll Auto Collateral Loans

The Pros

  • Auto collateral loans are quick solutions for cash problems. Those who are in desperate need for money whether for emergency situations such as hospitalizations or even delayed bills can make Ingersoll auto collateral loans their option for fast cash.
  • Your bad credit won’t prevent an auto collateral loan approval. Auto collateral loans companies won’t take regard on the borrower’s credit status when they approve loans. The main factor for getting auto collateral loans approved is the equity of the vehicle given as collateral or security for the loan. So even if you have been marked as a subprime borrower, you can still be confident of being approved an auto collateral loan.
  • You still retain access and possession of your vehicle. Even though you are placing your vehicle as security for the loan, it does not mean that it will be locked up by your lenders. As long as you pay your dues promptly, you can still use your car whenever you want.
  • You don’t risk losing some other investments. As auto collateral loans depend upon your car’s equity, you don’t have to be afraid of losing your real estates and home in case you fail to pay your dues. The worst that can happen is the repossession of your vehicle.

The Cons

  • Repossession is the worst case scenario for faulty payers. Just like any other loan or mortgage, it is very important to make regular repayments in order to avoid consequences. If you don’t make repayments on time with your auto collateral loan, you could lose your vehicle.
  • Auto collateral loans mean incurring debts. When you pawn your vehicle to an auto collateral loan company, you are incurring a new debt. Since this is debt, you have the obligation to pay it back.
  • The amount of loan awarded depends on the equity of your vehicle. Though Ingersoll auto collateral loans provide quick cash to about $25,000, this depends on the value of your vehicle. If you don’t own a high-priced vehicle, don’t expect to be loaned a big amount.