Each state has laws exempting assets including motor vehicles from creditor claims.
These laws differ vastly from state to state. California protects $7,500 in aggregate equity in your motor vehicles. In other words, if a creditor who won a judgment against you seized your assets to pay the judgment, he will not be able to access the first $7,500 in equity from your vehicle. Missouri protects only $3,000 in equity in your motor vehicles. Texas, by contrast, protects one motor vehicle regardless of its value from creditors.
To protect your motor vehicle, know your state’s exemption amount. If your finance the vehicle and keep your equity under the exemption amount, then the vehicle will be protected from creditors. Of course, if you don’t pay the loan on the vehicle the lender can seize it regardless of your state’s exemption laws.