August 28, 2020

What Is A Vehicle Equity Loan?

Your car may be a valuable source of equity. If your car has enough equity, you could leverage that in a vehicle equity loan through Interior FCU. It offers the low interest rates of a regular Vehicle Loan and the flexibility to use the money however you need.

Now, if the mention of a vehicle equity loan makes you cringe, we understand that some lenders give it a bad rap. There are plenty of shady lenders who use these loans to target people with bad credit and charge sky high fees. The good news is that you can avoid a risky vehicle equity loan by understanding the requirements and choosing a trusted lender like Interior FCU.

What are the benefits of an Interior FCU vehicle equity loan?

Because a vehicle equity loan uses your vehicle as security, you’ll enjoy several benefits:

  • Low rates, especially in comparison to industry personal loans or credit card rates.
  • Low payments and various terms
  • No prepayment penalty
  • Current promo: NO PAYMENTS FOR 90 DAYS!*

Carvana is vending fresh cars daily

We provide touchless delivery of your new vehicle through Carvana. Visit our website to learn more. 

How does it work?

Interior FCU will hold your vehicle’s title and grant you an amount based on the equity of your vehicle. Your car’s equity is calculated by taking the National Automobile Dealers Association (NADA) retail value, minus the outstanding balance. If your vehicle happens to be completely paid off, then you may be able to borrow up to the NADA retail value. If approved, you will receive the funds as a deposit or check to use however you wish. When your loan is paid off, we return your title.

What are the key requirements?

  • Your vehicle has at least some equity – you’re borrowing against the paid-in value of your car.
  • Collision and comprehensive insurance – if you’ve just finished paying off your car, hold onto this.
  • You’re able to repay the loan – failure to pay could result in losing your vehicle.
  • You’ve got your documents – you’ll need to submit documentation requested by the credit union and the Department of Motor Vehicles.

Rates & Terms

Our rates and terms are the same as for a used auto loan:


See our used vehicle rates

Loan Terms

Various terms

Loan Amount

Maximum is NADA retail value less any outstanding loan balance


If your title isn’t clear, you are responsible for fees to perfect the lien

Age/Value Limits


Add Ons

Eligible for Debt Protection, Guaranteed Asset Protection, and Mechanical Repair Coverage 

Get Started:

You would apply the same way as you would for an auto refinance loan, except the cash will go to you instead of a third party lender. To get started, visit our Vehicle Loans page and apply.

 *Interest still accrues during period of “no payment for 90 days.”


Related: Should I Take The Zero-Percent Financing Offered By The Dealer?

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