Car title loan amounts can vary based on several factors
Many Americans rely on their vehicles for all transportation. Most people drive to work or school or use them for running errands. Our cars are an integral part of our daily lives and losing access to them can cause significant inconvenience. Did you know that you can use your vehicle for something other than getting around town?
Your car capital can help you advance financially and in different places! Equity loans are short-term loans that allow people to borrow money using the equity in the vehicle. If you get approved, lenders may offer you a loan amount based on a percentage of the car’s total value.
This option is considered a secured loan because a physical asset is at risk if you don’t repay the money. During repayment, lenders will place a lien on the car’s title and remove it later.
While this can be a helpful financial solution for people struggling with money, you might be wondering “how much money can I get from a title loan?” This answer may depend on several factors! Read on to learn more about online title lending rates, or start your application today by completing this pre-approval form or calling to speak with a Loanmart title lending agent.
How are title loan amounts calculated?
The amount you can get out of a title loan may depend on the value of your vehicle and the availability of sufficient income to repay the loan. In most cases, title lenders offer borrowers a percentage of the car’s equity, between 25 and 50 percent. The maximum you can get from a title loan will depend on your income and the value of your vehicle.
Determining your car’s equity is key to estimating how much you can get out of a title loan. Auto equity means the amount of a vehicle’s value with the value you still owe subtracted. If you owe more than your car is worth in payments, you may have negative equity and therefore not qualify for a title loan.
You must have a positive net worth to apply for a car title loan online. You can apply for a title loan while your car is being financed, as long as it is about to be paid off.
If you want to know how much your car is worth, you can use helpful sites like Kelley Blue Book to get an estimate of its current market value. Vehicles with higher values or more equity may receive higher loan amounts than those overlooked over the years.
However, just because a car is new doesn’t mean it’s worth more than an old one. Some vehicles, like the Volkswagen models or the Ford F-Series, have remained popular over the years because they are in high demand.
What else do I need for a title loan?
Applying for a title loan online can be convenient as long as you meet the requirements and have the proper documentation on hand. With the necessary documents, you can qualify for funding. The advantage of this funding option is that it can be accessible to people from a variety of careers and financial backgrounds.
For an auto title loan, you must have the following:
- Valid government or state issued photo ID
- proof of address
- Proof of an eligible vehicle title in your name
- Proof of fixed income
- Recent photos of the vehicle
You must be able to prove that you are an adult at least 18 years of age or older to apply for a title loan. You can do this by showing a valid driver’s license or passport. You must also prove that you live in the state where your car title is registered. This document is essential because securities lending laws may vary from state to state.
Next, you must have an eligible vehicle title in your name. If you need help obtaining a vehicle title, contact your state’s DMV for more information. You will also need to provide proof of a stable income. This regulation is a federal law that prevents predatory lending practices! By showing proof of income, you prove that you can repay the money.
Finally, lenders will want to see recent photos of the vehicle in order to perform a virtual inspection. Make sure your photos are clear and simple – blurry photos can slow down the approval process.
Apply for a car loan today if you need cash fast!
The determining factors surrounding auto title loan amounts can vary based on a number of factors. The best way to find out how much you can get is to start the application process! Start by completing the prequalification form or call to speak directly with a bond loan agent.
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