Title loans are one of the most popular personal loans that lenders offer. They allow you to borrow money against your car title, with the lender holding it as collateral until they’re repaid.
The borrower can use the loan for any purpose but typically uses it to pay off an emergency expense or a debt obligation like credit cards and mortgages. If you’ve been considering taking out a title loan or need to know how much your car is worth to get one – this post is for you. Here, we will help answer those questions and give you some tips on determining the title loan value of your car.
1. By Doing Your Online Research
The first step in determining the value of your car for a title loan is to find out what it’s worth. You can do this by checking prices online or through other resources like Kelley Blue Book, if you’re one of our followers in the U.S, and the National Automobile Dealers Association (NADA).
It’s important to know that NADA uses regional rates, while Kelley Blue Book provides national figures. Once you have the information, you can determine how much you should ask for in your loan application.
2. By examining the car’s condition
Typically, lenders will look at your vehicle’s condition before approving or denying your title loan application. This is because they must ensure that the car’s value matches their risk. If the car is in excellent condition, it will be worth more than a comparable model wrecked or had major work done. Ensure you note anything that needs to be fixed before applying for a title loan, as this affects the value of your vehicle and how much you can get from a lender.
3. By considering resale value
Your car’s resale value is the maximum amount you can get for it when selling. When taking out a title loan, you’ll notice that this number doesn’t affect the final quote you receive. This is because your lender will consider what they can sell it for and offer you less than half of the total price. However, it’s important to note that this number can affect how much you pay back later. Therefore, your best bet is to sell the car yourself, which you can do after paying off your loan.
4. By understanding payment terms
Before taking out a title loan, it’s essential to understand how your payments work e.g by consulting Max Cash title loan calculator. There are typically two different types of loans: open-end and close-end.
The main difference between the two is that open-end term loans allow for one lump sum repayment, while closed-end loans require that you repay the loan in small installments. Since the interest rates on both loans are the same, you’re better off taking out an open-end loan. This is because it allows for easier monitoring of your payments and lets you pay more money each time.
5. By consulting with a dealer
If you’re still unsure about what your car is worth or how much you can get from a title lender, then it’s best to consult with a dealership. They’ll be able to provide you with some insight on how much they’re willing to offer for your vehicle. This will give you an idea of its value in the market. While this isn’t the final decision, it does provide you with an estimate that you can use to determine if your car is worth more than what a lender says.
6. By using the right title lender
Your best option is to use a lender from a good and reliable network when it comes to title loans. These networks know which lenders offer the most beneficial products and have a great history of providing fair quotes.
This means that you’ll get a good idea of how much your car is worth without having to worry about being ripped off.
7. By focusing on the positive
Unfortunately, cars depreciate each year. This means that if your car is over three years old, it may be worth less than what you expect. However, rather than focus on this negative aspect of title loans, think about what you can gain from this.
For example, getting a loan of four to five thousand dollars within a few days allows you to save money on interest fees and avoid taking out a traditional loan. If your credit score isn’t good, this is the perfect solution to your financial woes.
Conclusion
If you’re searching for a way to get a fast loan, then you should consider taking out a title loan. Not only do they provide an excellent alternative to traditional loans and payday advances, but the application process is usually much easier than you may expect. This means that getting approved for a loan doesn’t take days; in most cases, it takes less than an hour.
Arun is an avid blogger and business expert. He’s been in business from the moment he finished school and hasn’t stopped growing ever since.
