Looking At Pink Slip Auto Loans

It is quite normal for people to end up in a place where they are short on money, and where they are maybe even willing to resort to desperate measure in order to rectify their situation; oftentimes, these desperate measures can include applying for a high-interest payday loan (one that needs to be paid back, with interest, within a couple weeks) or even selling off personal possessions – but another idea to consider is a pink slip auto loan.

Basically, a pink slip loan functions the same way taking out a second mortgage on your house would work – where you pretty much end up borrowing against the value of your car; for instance, if you have a car that is worth $8000, you might be able to get a pink slip loan for about 75% of this amount (about $6000), which could be enough to get you out of the tough spot you have found yourself in.

Of course, as with any “unique” form of loan such as this (especially one that allows you to take out a loan even if you have bad credit – which is usually the case with a pink slip loan), there are drawbacks – and the primary drawback with a pink slip loan is often that the interest rates are not exactly competitive, and if you are unable to make your payments, you will lose the rights to your car!


Of course, this brings up the question of whether or not a pink slip loan is actually worth it – and the answer, quite simply, is that it depends; if you are able to find a solid, reputable company that deals in pink slip loans, you will be able to get a repayment plan stretched over anywhere from two years to four years, and will be able to pay off the balance of the loan at any time without incurring any prepayment penalty. At the same time, there are companies whose terms are not quite so generous or agreeable; in the end, it basically comes down to how dire your situation is – realizing that a pink slip loan is better than many options, but is certainly not the most desirable way to have to go!