[Ancapistani]

Another thing that makes no sense to me: I couldn't get my bank to finance the purchase of an older vehicle at any rate.

Last year, my air conditioner condenser went out and had to be replaced for a total of of $4.5k. I could have paid that out of pocket, but didn't want to deplete my emergency fund and always check my options. The same bank was happy to give me a "personal loan" for $5k at 9% APR. I asked if I putting up collateral could lower that rate - they offered 6% if I'd use a vehicle title to secure the loan.

So, I can get a loan for $10k on a 2020 vehicle at 9%, or I could get a loan for $5k at 6%... but only if I already had the vehicle's title in my name at the time.

It makes no sense to me at all, but that's how it's structured. It's far easier to get credit when you "want" it than when you "need" it.

[_DeadFred_]

Can't they still attach the AC loan to your house without you putting it up? I know having work on your home can automatically attach.

[Ancapistani]

Yes, I could have gotten a home equity loan. I didn’t want to do that because I want to be able to sell it in the near future depending on how things work out, and didn’t want the additional title encumbrance.

[qcnguy]

If you need the money you're less likely to be able to pay it back, is the logic.