Auto Title Loans
Loans come in different forms; open-ended loans, closed-ended loans, secured loans and unsecured loans. For a secured loan, collateral is given up to get the loan. This is similar to when an individual takes a mortgage and offers collateral to secure the mortgage. The lender may insist on taking ownership of the collateral on the occasion where the borrower defaults. Auto title loans are an example of secured loans where you get a loan by offering the title to your car or vehicle to the lender or the car title loan company as collateral.
The implication of getting this loan is that you are permitting the auto title loan agency to place a lien on your car or vehicle. This makes your lender the “lien holder” That is, temporary surrendering the document showing ownership of your car to a title loan company in exchange for a specific loan amount.
You only regain ownership of your car when you completely repay the borrowed loan amount in full. In other words, the auto title loan company will remove the lien on your car or vehicle when you complete payment of the loan, and then the title returns to you.
It is important to note that auto title loans are not limited to cars or vehicles only. In fact, you can also use the titles of your other vehicles such as SUVs, motorcycles, trucks, trailers, and vans as collateral. Other names for auto title loans are; pink slip loan, car title loan and vehicle title loan.
Auto title loans are quick to obtain and easy to access. An auto title loan is a means of escape in times of critical needs that grants you access to funds based on your available asset – the pink slip or title of your car or vehicle. And in most cases, you will be able to get the funds on the same day of application.
An auto title loan is a short-term loan where the borrower tenders his or her car title as collateral. On like other conventional secured loans, you do not give up your car or vehicle. On the contrary, you still keep possession of your car as long as you do not default the agreed terms.
What this means is that you temporary give up the ownership of your auto title to the auto title loan firm until you fully pay back the loan. The process is mild and involves fewer rigors to acquire compared to traditional lenders like banks and credit unions.
How Auto Title Loans Work
As earlier mentioned, your car or vehicle title is what you offer to an auto title loan company when you take a car title loan. This title document is what indicates your ownership of the car or vehicle. This document is what you tender to the lender when you acquire an auto title loan.
You approach the auto loan company with your car and title. The title loan lender then inspects your car; checks the age of the car, make, model and working condition of the car. This inspection process lets your lender know your car’s roadworthiness and to gather specific data about your car to come up with a loan amount that suits the value of your car.
The information gathered will determine how much you can get and also determine what the resale value of your car might be. Then, the lender will document the title of your car, place a lien on it, and hand over the requested loan money to you.
The value or worth of the car and your capability to pay back the loan is what determines the amount of loan you can access. However, you must first own the car outright or there must be enough equity on the car for you to be entitled to get a car title loan.
One of the possessions owned by most people today is a car, vehicle or motorcycle. Your car or vehicle can rescue you at the time of critical financial needs or when you are running out of cash. Auto title loans are the ideal solution for people with bad or no credit worth. Anyone can qualify for an auto title loan and can access cash from $2,500 to about $50,000.
Simply put, the auto title loan agency assesses your car or vehicle and lets you borrow a percentage of its value. This percentage is reached by an auto title loan calculator. And, you get to keep your car or vehicle while you repay the loan.
It is possible for a borrower to default on an auto title loan. There could be a situation where a borrower fails to follow through on the terms agreed with the lender when taking out the loan as stated in the borrower’s contract.
When a default occurs, the auto title loan company may attempt to contact the borrower to discuss more efficient ways to remedy the situation. But this is not the case with all lenders. While some lenders may offer to help you, others will remain unavailable at this point, leaving you boxed up in your predicament.
Car or Vehicle Inspection
Since your car title is the collateral for the loan, an inspection is a way of ensuring that you receive the maximum amount based on your car’s worth. A car or vehicle inspection may reveal a higher value, hence, qualifying you for more cash.
During the inspection, a representative of the auto title loan company will check the roadworthiness of the car, the proof of ownership of the vehicle, and if you have active insurance policy titled in your name.
The inspection exercise will check if there are any visible dents on the car, such as; scratches, broken glass, scraps, broken lights, and much more. Also, the inspection will check to discover if any bodywork has been carried out on the car.
The representative will also check if you have some cool aftermarket additions to the car. All these details will indicate if your car or vehicle will value more and qualify you for more money, or otherwise.
A vehicle inspection is how you maximize the loan amount you could receive. You may apply for a small loan amount, thinking your car or vehicle is not worth much, but, the inspection process may reveal a higher value, hence, qualifying you for more cash.
How to Get an Auto Title Loan
Once you own a car or at least have enough equity on the car or vehicle, you can get an auto title loan.
The way an auto title loan works is simple. First, you approach the auto title loan company near you, or you do an online or over the phone application. The auto loan firm will proceed to process your application.
You will be required to present some documents like proof of income, proof of residence, photos of your car and about five (5) references. Your lender may also need to contact your insurance company (though not a strong determinant)
After you approach an auto title loan company for a loan, they will evaluate your car to determine its worth and how much it will qualify you to access, and then one of their officers will lead you through the rest of the approval process. You can get the financial help you need on the same day that you apply, within minutes.
Though the Department of Business Oversight regulates and oversees auto title loans, interest rates vary between lenders. The minimum amount you can get is usually $2,500, and the maximum can be up to $50,000.
Some factors to consider that determine your loan amount are; the model or make and mileage of your car. If your car has a clear/ salvage title or if your car has on it an existing lien, it could also affect the loan amount you can access.
Although auto title loans are short-term loans, you can agree the repayment period with your lender. While some lenders may offer you a more extended loan payment plan, others may not. And in an auto title loan, you can completely pay up the loan in time by making larger payments each month without being penalized for prepayment.
You can pay off your loan anytime. The period for repayment of the collected loan is usually not lengthy (about 30 days or more). You get your title back when you pay the loan in full.
The truth is, contrary to the general belief that when you take an auto title loan, you stand to give up your car or vehicle, you still keep your car when you take a car title loan. As long as you don’t default the agreed terms, you continue to drive your car wherever you want. The only thing you hand over is your car title.
It is easy, quick and free to get a car title loan. You will not be charged a dime to acquire a cash loan on your car title.
Benefits of getting an Auto Title Loan
Anyone can benefit from getting an auto title loan. A car title loan can significantly improve the life of anyone with poor credit history.
The application process is quick and straightforward, and you enjoy quick approval as well. It can be done online or over the phone. On like traditional lenders and other title loan agencies, the application process also eliminates too many documentation and sticks to the basics, which are; identification, car title and sometimes, proof of residency and insurance.
Auto title loans offer more friendly and mild terms with no hidden charge. You can discuss the repayment plan with t your lender till you both reach a convenient payment plan that fits your budget and schedule. You will even be allowed to pay back your loan as early as you can without paying any prepayment charge.
It is of utmost importance to maintain punctual and regular payments after securing the money you need to avoid facing the dilemma of repossession.
An auto title loan is a perfect example of using what you have to get what you want, and it is important to choose the best auto title loan company. To get the most out an auto title loan, you first have to approach and apply to the right title loan company.
You want to be sure that the auto loan agency will be able to give you the maximum loan amount on your title and at the lowest interest rate possible.
So, if you need a quick and efficient means to pull the cash you need out of your car within the shortest time possible, you need an auto title loan.
To enjoy the best auto title loan experience, you will have to do a few things. You need to choose and present the right car, in good working condition, for inspection. This is because the Kelly Blue Book will be used to evaluate your car or vehicle, and the value of the car or vehicle determines the loan amount that you will receive.
To ensure a smooth and fast auto title loan application, do well to provide accurate information to the title loan company. If there happen to be an upgrade package or any new future you added to your car (like an up-to-date digital stereo system or high-grade wheels), do well to inform your lender as well.
Again, it is easy and simple to access and get a quick auto title loan. Once you own a car, as well as a clear and authentic car title in your possession, you are eligible to access an auto title loan. The outcome of the inspection process, your ability to repay the loan will determine you are getting the auto title loan.
An auto title loan guarantees your getting quick funding whenever you are broke or in need of money fast to handle a critical need. Acquiring a loan is no longer difficult if you are stuck or constrained due to lack of cash, have bad credit or need money for any financial emergency. An auto title loan is typically a bad credit loan.
So if you need to get some money fast, there probably is no fast way to get a loan than getting an auto title loan from us. Car Title Loans California has been providing California with auto title loans for over 24 years and our vast knowledge and experience definitely sets us apart from all of the other lenders.
If you want to have the best auto title loan experience, then come to us, we will take care of you.
We will get you the most money, best interest rate and fund you on the same day that you submit your application with us.
Call us today and let us give you the best auto title loan offer. 844 242 7467 or you can apply online.