Can someone ELI5 why any average joe would ever use DeFI loans?

I mean, in a normal loan, you get the loan because you don't have the money to pay for the thing outright (eg car, mortgage, etc).

If you had the money, it would be cheaper in the long term to just buy the thing, because then you don't have to pay interest.

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But with DeFI, you have to put up collateral >= the value of the loan you receive.

So you must already have the money.

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I understand how this can be useful for speculators who'd want to take advantage of price changes of the collateral token vs the loan token, but DeFI is always pitched as a way to empower the averge joe to not be dependent on banks for these financial services.

So how would this work for anything other than speculation?