How to Borrow Money Using your Car.
Auto title loans are one of the top methods that today’s consumers use to obtain the funds they need for emergencies.
All states have laws about title loans and other short-term loans because of various acts that they put in place to prevent predatory lending practices.
In this article, I will be showing you how to borrow money using your car.
What is an auto title loan and how does it work?
In the United States, a car title loan, also called an auto title loan, vehicle title loan, pink slip loan, or simply title loan, is a type of secured loan where borrowers can use their vehicle title as collateral.
Auto title loans are short-term solutions that provide funds to vehicle owners who qualify for them. The typical loan ranges from $500 to $50,000.
An individual can borrow a certain percentage of the wholesale value of his or her vehicle. This amount will vary according to certain factors like the vehicle’s year, the model or the mileage.
Consumers can receive higher loan amounts if they have new vehicles. You can use this auto loan calculator to get an idea of the amount you can get against your vehicle.
How to get an auto title loan
Generally, loan application processes are fairly fast. First, the owner of the vehicle needs to contact a local lender. He or she should make sure to have all the information about the vehicle on hand.
The only way that a lender will give a title-less person a title loan is if that person owes less than 25 percent on the vehicle loan. The company may consider issuing an advance to such a person.
The lender will assess the value of the vehicle and present a figure to the borrower. The borrower has the right to accept or refuse the proposal.
Also Read: 5 Warnings When Considering A Payday Loan.
If the loan offer is accepted, a contract will be signed and the lender will provide the borrower with the agreed funds. The borrower can drive the vehicle until he or she repays the loan.
However, the lender will want to place a lien on the car that gives it the right to repossess it if the borrower’s account becomes delinquent. The lender will drop the lien when the borrower repays the advance.
In L.A, you can find a participating lender for auto title loans here. A specialist will start the application process immediately, and in most cases, the borrower should receive loan proceeds in 24 to 48 hours.
That’s all on How to Borrow Money Using your Car.