Finance after buying with Cash?

[overst33r]

A friend of mine's family flips cars frequently. So I was talking to his mother and she was talking about how she bought a car with cash from a private party to get a good deal and then later finances it thru another source. I didn't get a chance to inquire about the details.

How does this work? You give the bank the title and they give you a check, then you make payments?

 

[CPA]

hmmm, the only places that I have heard that does that are PayDay/Title Loan outfits. And they do it with very high rates.

 

[highland145]

I did it a 2 years ago (today) because it was the end of the year and I wanted it depreciated on that tax year for the business. Went to the bank when the title came in. But I cleared it with them prior to paying cash.

I didn't get any better price than if I had let the dealer find financing.

 

[overst33r]

Maybe it's a personal loan? Would that even work for a car?

 

[JTsyo]

So basically it's a secured loan.

 

[GoPackGo]

You can take a secured loan on a car.