Can a car that is not your own be used as collateral?

[LeoFitz]

Yes, as long as the vehicle owner agrees, this type of loan is called an auto title loan. Here are the relevant details: Auto Title Loan: An auto title loan is a loan obtained from financial institutions or auto consumer loan companies using the borrower's or a third party's car or purchased vehicle as collateral. Used Car Loan: Used cars can be used as collateral for loans, but the conditions are very strict. Although many banks do not refuse used car title loans, there are numerous requirements. You must provide proof of intent to sell the vehicle, a vehicle appraisal report, the seller's vehicle ownership certificate, the vehicle's annual inspection certificate, and the loan amount must not exceed 50% of the vehicle's total value. Some banks even require that the application for a used car title loan must be secured with real estate; otherwise, even if all five conditions are met, the loan will not be approved.