Customizing Your Car Using Auto Equity

• 1). Determine how much you would like to have for your customization. Make a list of all of the things you would like to do to your car, research the cost of each, and add them up to determine the total you would be spending.
  
  
• 2). Find a lender that will do cash-out auto refinances. Not all lenders are willing to give you cash on an auto loan, but some will refinance your current auto loan for more than its outstanding balance and give you the remainder in cash. For instance, the Wells Fargo website states that they will finance your vehicle up to 60% more than the value of the car.
  
  
• 3). Apply for your selected cash-out refinance, explaining to the loan officer that you wish to have a loan for the outstanding balance of your current loan plus the amount that you calculated for your improvements. The lender will ask you for financial documentation such as pay stubs or bank statements to prove that you have the ability to repay the loan. When you have been approved, the lender will contact you to sign paperwork.
  
  
• 4). At the closing of the loan, the bank will issue you a cashier's check for the extra amount on your loan. Deposit this check to your checking account, and use it to pay for your customizations.
  
  

Customizing Your Car Using Other Loans

• 1). Decide on which type of loan is best for you--home equity or personal. A home equity loan will allow you to take cash out of the equity you own in your home. A personal loan will be unsecured and so will have a higher interest rate. Because there is no collateral with a personal loan, you will also likely be limited in the amount you can borrow. However, if you do not own your home, a personal loan is your best option.
  
  
• 2). Shop for the best rates and products. Contact your local branches to find out who has the best loan with the lowest interest rate and terms that will benefit you most. Think about how long you would like to have to repay the loan as well as the amount of your monthly payments.
  
  
• 3). Apply for your selected loan in the amount that you need, having your financial documents ready to speed up the approval process.
  
  
• 4). At closing, the bank will advance the entire balance of the loan to you, which can then be deposited and used for your auto improvements as needed.