Cash Out Refinancing: How To Get Cash from Equity in Your Car

Hard assets like vehicles have value to them.  The amount of your vehicle for which you have already paid is the equity in your vehicle. What’s more, that equity is often available to vehicle owners, sometimes, you may owe less on your vehicle than what it is worth. That means you can often take out that cashback from the equity in your car and use it for other needs. Does that sound confusing? It doesn’t have to be. It can provide you with some of the best opportunities to reduce what you’re paying elsewhere.

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Key Takeaways

• Cash-out auto refinancing lets you replace your current car loan with a new one for more than you owe and receive the difference in cash.
• Vehicle equity is the difference between your car’s current value and your remaining loan balance. It can be used to access funds for other financial needs.
• Eligibility depends on your car’s value, mileage, loan balance, credit score, and preferred repayment term.
• Benefits of a cash-out refinance can include lowering your interest rate, consolidating debt, or unlocking funds for expenses without selling your vehicle.

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What Is Equity in Your Vehicle?

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When the value of your vehicle is more than the amount that you owe on your loan, you have equity in your vehicle. Here is an example. You purchased a vehicle a few years ago. The current value of the vehicle is $16,000. You’ve worked hard to pay down the loan. Right now, you owe about $12,000 on it. That $4,000 difference is equity. Many times, you are able to take out that equity to use for various needs you have.

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How Do You Get Cash Back from the Equity in Your Car?

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Lenders are not going to write a check to you for the equity just because you have it. Your current lender is not likely to provide a way for you to access those funds. However, you can do so with a cash-out refinance. That sounds confusing, but it can be fast and rather simple when you use RefiJet to help you with it.

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During this refinancing process, you are obtaining a brand new loan. In the above example, you may borrow up to that $16,000 value of your car. The first portion of the new loan will be used to pay off the existing balance you have on your auto loan – the $12,000 you owe to the current lender. Then, you get a check for the remaining funds. In this case, that could be as much as $4,000.

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This is called a cash-out refinance. You still have to pay off the $16,000 you are borrowing. Yet, new terms mean that you can do that in an affordable way, in most cases.

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Why Should You Consider an Auto Loan Refinancing to Get Cash Back from the Equity in Your Car?

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There are various factors that play a role in your ability to secure a cash-out refinance. Our team at RefiJet will help you to determine if you qualify for these opportunities. Factors such as the following play a role in your ability to use a cash-out refinance.

• The value of your car – we’ll base the value of your vehicle on a third-party valuation guide based on your specific vehicle and its features and mileage
• The amount you owe on your existing loan
• Your credit to determine the interest rate you qualify for
• The length of the term for repayment of your new loan

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Here’s the good news. RefiJet makes the entire process as simple and as straightforward for you as possible.

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Do You Qualify for an Auto Loan Refinance Like This?

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There are various factors that play a role in your ability to secure a cash-out refinance. Our team at RefiJet will help you to determine if you qualify for these opportunities. Factors such as the following play a role in your ability to use a cash-out refinance.

• The value of your car – we’ll base the value of your vehicle on a third-party valuation guide based on your specific vehicle and its features and mileage
• The amount you owe on your existing loan
• Your credit to determine the interest rate you qualify for
• The length of the term for repayment of your new loan

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Let RefiJet Help You Get Cash Back from the Equity in your Car

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Here’s the good news. RefiJet makes the entire process as simple and as straightforward for you as possible.

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When it comes down to it, consider what you could do with the equity in your vehicle. If there are other ways you can use those funds to help you to make better decisions, reduce your debts, or just make a purchase, you need to turn to RefiJet. Our team may be able to help you secure an affordable monthly payment and get cash in your hand.

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Customer service is important to us at RefJet, and we value our excellent customer reviews and our A+ rating from the BBB. That’s because we are dedicated to providing superior customer service to you. Fill out the form here to learn more about your options for a cash-out refinance. It’s easier than you think, and there’s no obligation to work with us. Get Started Now.

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