When you have collateral (like a paid off vehicle), that is worth at least 115% of the amount that you want to borrow, you can use that collateral to cram your loan rate way down. Another way to secure your loan (and get a really low interest rate for it) is to secure the loan with cash that you have in your Share account (a Share-secured loan), or with an existing share certificate (a certificate-secured loan). This might make sense for you if you have a surprise expense (car breaks down) and you need cash now but you don’t want to cash in a long-term certificate of deposit, with a great rate, just to pay this short-term expense. It may also make sense if you (as a parent or grandparent) want to pledge your funds as collateral for your child/grandchild’s car loan. This way the child/grandchild can get the loan at a great interest rate and learn the responsibility of making the loan payments, and you (parent/grandparent) don’t have to disturb your savings. As the loan is paid down, your funds that are securing that loan will be released (available for you to withdraw) every time a loan payment is made, so you don’t loose access to all that cash for the entire length of the secured loan.
Lastly, if you have limited or no credit history a secured loan can be a great way to build a record of having a loan and making on-time loan payments. A credit builder loan like this is quick and easy to apply and be approved for.