Interest rates for specialized car equity loans are based on several key factors – the amount you are borrowing, the value of your collateral, your location, and the loan duration. Your collateral will play a big part in the loan amount. Its equity will also impact the interest rate the lender will levy. It’s best if your car is lien-free and is well-maintained. This will give you more leeway in your loan.
Your location is also a big factor. While there’s a basic policy, some cities might have different regulations regarding short-term loans. For instance, one city has a cap on interest rates while the next one does not. But current law states that lending companies can’t charge more than 60% per year. This also depends on the contract terms. It also includes all fees you’ll have to pay to get the loan.