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Can I get a loan on my car if I still owe on it?

I want to get a loan on my car, although I already still have a loan on it, as I’m going to use the proceeds to finish a home improvement. However, I’m not sure if this is possible. Can you still get a loan if you currently owe on your car?

avatar
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
You can typically still get a loan on your car if still owe on it in two circumstances.
A title loan is your best bet if you haven’t
gotten out of an upside-down car loan
—meaning you owe more than the car is worth. However, the interest rates on a title loan are often crippling, and you may be better off with a signature loan if you have halfway decent credit.
However, you should refinance the vehicle if you still owe on your car, but the balance is less than the value of the car. You can usually take out the total value of the car minus the equity you have. That means if your car is worth $15,000 but you owe $10,000, you can get the difference between the two. This is known as a cash-out refinance, and it’s popularly used to consolidate debt or pay for things like home improvements.
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refinance the car
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