Do you urgently need cash to settle your bills or cope with an emergency? You might be interested in car title loans if this is you. Car title loans are similar to payday loans and installment loans because they offer significant cash within a very short period. However, auto equity loans are not completed, similar to regular short term loans. There are so many differentiating factors, and the biggest difference comes from the fact that the lender will attach a lien to your vehicle. This is a common thing with most car title loans.
In general, car title loans are gotten when you pledge or use your vehicle as collateral. Therefore, the lender will take ownership of the vehicle until you can conveniently pay the money. One of the major problems that people face when they seek loans is the lack of tangible collateral. However, with car title loans, this problem can be avoided. Now you can use your car to get money, cope with different emergencies, and get back your car when you complete the loan.
Are you wondering how these loans work?
It's pretty simple. All you are doing is using your vehicle to borrow a specified sum of money. However, one important thing is to ensure that your car has enough equity. This is what will determine whether your car can fund the loan or not. Other terms involved depends on the lender you use. Some lenders will do extra to ensure that you have settled every other loan, especially loans used in purchasing the vehicle. Other lenders will let you borrow, even though you are still paying off the auto purchase loan. The average range for car title loans is usually between $100 and $5,500.
There are also other considerations to make when seeking to get a car title loan. Generally, a combination of your vehicle's equity and the value of your car will determine the amount of money you can borrow. Therefore, you'd receive more if your car has more value. However, it is important to note that you cannot squeeze the full value of your car. This is because most lenders want to get their money back with ease, and as such, they will only lend an amount that they can easily and quickly receive.
In rare cases, the lenders will have to sell the vehicle. This depends on the terms that were agreed on. When collecting a car title loan, it is important to always remember that you are a consumer and have rights. This implies that the lender must follow laid down rules, irrespective of what happens. Car title loans are helpful in cases of short term financial crisis, and you can consider getting one.