I just saved about $550 on an on-demand water heater and I paid for it with a car title loan.  Aside from being good for reducing energy waste and costs, it was actually a smart bit of financial maneuvering for a guy with no job, bad credit and no spare cash (not even a home equity loan).

I knew since a year ago that the water heater in my house will give out soon. I was thinking about the “tankless” water heaters because they reduce both energy and water usage – it cuts energy use by 34% of what a conventional boiler uses, and because you wait less for the water to run, you also save about six gallons of H20 every day. Long term, that’s the technology I want, given the state of energy costs and water shortages.  Also, the federal tax code provides for a $300 credit in 2009 if you install this kind of system.

On top of all that, a store in Chandler is selling them at a 20-25% discount if you place an order one now, in 2008.  Give them a $300 down payment now, then get the full discount on delivery in 2009. The total cost for the heater with installation will be $1250, but savings and tax credits brings it to $700.  

Which brings us to our challenge/opportunity.  Where do I find fast cash to grab this good deal?  

Google always knows. I did a search for “title loans” and “loan against car title” and found Car Title Loans in Mesa, where I was eligible for a $5000 loan against my 2004 Corolla. Their online application was a real relief because I wasn’t keen on going to one of those storefront car title places like you see on Southern Avenue. The online application and the approval got me my cash in an hour (there is no credit check, which really speeds things up). I was able to make the $300 down payment the next day.

I only borrowed ten percent ($500) of the amount available.  When I take delivery I’ll either have a new job or can borrow the balance again.  Reducing dependence on foreign oil is a side benefit.

              - Jeremy K.