{"id":6614,"date":"2021-10-22T11:45:07","date_gmt":"2021-10-22T10:45:07","guid":{"rendered":"https:\/\/businessfinancenews.com\/?p=6614"},"modified":"2021-12-09T21:15:16","modified_gmt":"2021-12-09T20:15:16","slug":"why-are-car-loans-always-secured-with-collateral","status":"publish","type":"post","link":"https:\/\/businessfinancenews.com\/loans\/why-are-car-loans-always-secured-with-collateral\/","title":{"rendered":"Why Are Car Loans Always Secured With Collateral"},"content":{"rendered":"\n
Why Are Car Loans Always Secured With Collateral<\/h2>\n\n\n\n
why are car loans always secured with collateral<\/p>\n\n\n\n
When many people go in search of a smaller loan (for instance: $10,000 or less), they are often surprised to find the banks will not accommodate them because of what they call an \u201cinsufficient loan amount\u201d. For most banks, taking out a loan other than for purposes of purchasing a home or a car requires the borrower secure a minimum of $20,000 or more. There are some stated reasons for this, but what it boils down to is the fact that larger banks don\u2019t want to bother with the effort of what they think of as a \u201csmall\u201d loan, and that\u2019s regardless of whether you have excellent credit, own property, etc.<\/p>\n\n\n\n
To use an analogy; it\u2019s like your favorite pizza restaurant will only serve you a large pizza because they feel it isn\u2019t worth the trouble of making a medium or small.<\/p>\n\n\n\n\t\t\t