A mortgage with a car title loan is possible


When you can have a mortgage loan on a car

When you can have a mortgage loan on a car

The loan with a mortgage on a car is possible, at least in theory, but it is not easy to obtain and in any case is not very convenient for both risks and costs. We know very well that in the absence of further guarantees, such as paychecks or other documents attesting to an income, some people would be willing to put their own car into play to obtain a loan. But the hypothesis, although legally recognized, is hardly feasible for a series of very valid reasons.

Let’s make a premise: the Italian legal system provides for the possibility of lighting a mortgage on both real estate (like the house) and on movable property. In the latter case, however, it is necessary that the assets are traceable to a specific person, by registering them in the appropriate registers attesting to their ownership. And the cars fully meet this requirement, being movable property registered to the PRA and therefore ascribable to a certain subject, the owner (who can show the ownership certificate and the registration document to prove ownership of the property).

Therefore from the legal point of view nothing prevents the owner of a car from deciding to mortgage it. Procedurally the car mortgage loan works more or less like any other loan. The applicant receives the capital from the lender and undertakes to return it with interest through an agreed amortization plan (usually by means of bills of exchange). To guarantee the loan, instead of a demonstrable income, he lights up a mortgage on his car. In the event of default, the financial company recovers the claim by claiming the car. The mortgage on vehicles is established by notation to the PRA and the maximum duration is set at five years.

This is, in a nutshell, the procedure for obtaining a loan by mortgaging a car. But let’s be clear, this is a type of financing that is not very convenient both for the creditor company and for the debtor, so that serious and reliable banks and financial institutions are hardly willing to grant it.

The reasons are the following: first of all the car is a good of little value, being subject to rapid and constant devaluation, without taking into account the risks connected to use (the mortgaged car remains in the full availability of the owner) which in case of damage can further lower the listing. It is therefore not much of a guarantee and the same payable capital, estimated at around 30% of the car’s value, is generally very low. Is it therefore worth risking losing your car for a loan of a few thousand euros? Unless of mortgaging a new or almost new Ferrari, but the eventuality seems very unlikely. Furthermore, it must not be forgotten that the preliminary investigation costs (to be paid by the applicant) are very high, having to resort to a notary both for the registration of the mortgage to the PRA for subsequent cancellation. And it is known that notary fees do not shine for thrift.

Loan estimate of 10000 euros

Loan estimate of 10000 euros

 

Financial: Simple Loan
Product: Personal Loan
TAN Fixed: 4.25%
APR: 4.44%
Loan duration: 60 months
Amount Financed: € 10,000
Total due: € 11.117

Monthly installment € 185, 28 Feasibility check 

Financial: Mago
Product: Personal Loan
TAN Fixed: 5.16%
APR: 6.70%
Loan duration: 60 months
Amount Financed: € 10.146
Total due: € 11.735

Monthly installment € 193, 19 Feasibility check 

Financial: Sindomestic
Product: “Your Projects” Credit
TAN Fixed: 6.01%
APR: 6.18%
Loan duration: 60 months
Amount Financed: € 10,000
Total due: € 11.602

Monthly installment € 193, 37 Feasibility check * The tables give an example of the structure of the site. For all the comparative offers click on the go button and get all the information you need to evaluate the proposal that suits your needs