Reasons to Get a Car Collateral Loan in Times of Pandemic

Transportation has a huge likelihood of getting infected as it gathers a crowd of strangers in a prolonged (and dangerous) time. Having a car becomes a necessity – a protection to your family and your health. Other financial needs may arise and place your car as the top choice to exchange for funds. There is a way to make both needs meet and that is a loan without taking your car.

Just in case, these are the reasons to get a car collateral loan  that remain relevant in times of pandemic.

Safety and convenience amid the pandemic

Since we are in the middle of a pandemic, there have been various travel restrictions that slow down daily and scheduled plans. Public transportation is limited, and there is a huge risk of infecting others and being infected by the virus as you are bound to be with different commuters for a prolonged period. Using your car to go places protects you from possible health risks, making your travels safe and more convenient.

Quick and hassle-free processing

The majority of businesses have dramatically shifted to digital platforms, and so financing institutions have gone online to continue serving their clients. When it comes to auto loan applications, there’s no more need for traveling and waiting in lines to proceed with your transaction. This also reduces the physical contact with strangers and the possibility to get infected with the viral disease.

However, bank processing, though online, remains to be slow-paced as they strictly require documents and eligibility. What meets the urgency of your loan request is the array of private lending companies that offer quick cash through OR/CR loans and other forms of financing.

Payment extensions and payment flexibility

Payment extension and flexibility are also offered during this pandemic, so there’s no reason to worry about your loans. Should the urgency for repayment arise, however, a car loan collateral is an immediate source of quick cash. You can also use the cash from the OR/CR loan for your other needs while your car remains in your possession for traveling purposes.

Aside from loans, some car insurance providers also offer additional grace periods, discounts, and payment relief due to the ill effects of the pandemic on the livelihood of their customers and the economy.

Limited-time offers and promos

All industries were shaken and the market is disrupted when the coronavirus disease becomes a pandemic in a short time. At the height of lockdowns and community quarantines, sales went down. There have been many offers and promos released to attract people to buy products and services. The auto industry is not exempted from this. By keeping your car, you can enjoy these offers and promos while they are still present.

Open service shops and strong sanitation procedures

Sanitation is very essential in these times, and the automotive industry upholds this procedure. Because cars and other vehicles are the most convenient and most used means of transportation, service centers stay open to looking after the repair and include cleaning or sanitation in the whole process. This includes the thorough and proper disinfection of the employees and heavily touched parts of the vehicle such as the steering wheel, door handles, etc.

Frequent patterns of low gas prices

The expenses of having a car do not only end in paying its price or mortgage plan. It also includes the unforeseen need for repair and, of course, the ever-changing price of gas. However, due to the current situation and the decline of people traveling (because of home-based schooling/work and protocol to stay inside the house in absence of a strong need to go out), gas prices have been seen to go on downward slopes multiple times. This is another opportunity that reduces your worry about keeping your car and finishing your payment. However, it must be noted that eventually the gas prices continue to fluctuate and will go back to higher rates once the economy has withstood the crisis and returned to normal.

Helping the economy and local businesses

The strong impact of the coronavirus disease is felt on a global scale and may result in an economic recession even after its existence. As it will impact all of us at the end of the day, it’s best to keep businesses alive by consuming the products we need and availing of services necessary to our day to day life. Our collective patronage to local businesses helps our economy to bounce back to its original form. And the car industry is a fraction but also an essential part of this task.

Final Thoughts

We are months away from the height of the pandemic named the coronavirus disease. The curves have shown little but already important improvements which may mean that this will come to an end hopefully. But it doesn’t mean we can now be lenient with our ways.

You should keep your car for safe and secure transportation, and applying for an OR/CR loan is one way of doing it while getting quick cash for your other needs.