The concept of title loans came onto the scene in the early 1990s to assist individuals who had poor credit. A title loan is a loan where an asset is required as a security pledged for the repayment of the loan. Based on that asset, a line of credit is given to the borrower and he needs to pay back the loan in weekly, biweekly or monthly installments. The annual percentage rates (APR) for title loans vary from state to state and range from 36% to 200% and occasionally exceeds 200%.
What Is a Title Loan for Bad Credit?
People use title loans when they need money quickly and have issues getting a loan from a traditional lender like a bank. This type of loan is quite popular among people because it has two key benefits to the person who obtains the loan. The first thing is it does not consider the applicant’s credit rating when providing the loan. The next is that approval for the title loan can be done within a short period of time because it does not require many documents and the application is usually uncomplicated.
How Much Can I Get for a Title Loan?
The amount that you can receive from a title loan varies from person to person depending on the value of the person's vehicle and their ability to repay the loan. The lender will generally work with you to get you the amount of money that best suits your needs while also making sure that you have the ability to repay the loan and that it won't put you in further financial trouble.
Companies which provide Las Vegas car title loans or AZ title loans do not consider the credit history of the borrower. That means that the companies do not care if the borrower has no credit, bad credit or good credit when lending money because the loan is secured by your vehicle. However there are some factors which lending companies consider when providing title loans. They are;
- The value of the borrower’s vehicle: These loan companies are automotive experts. They conduct quick evaluations on the car’s make, model and the current condition to decide the value of the car.
- Borrower’s state of residence: Most states have laws that restrict the amount that people can borrow on title loans. In such instances the applicants are informed about this and some states can allow an amount up to $50,000.
- The income of the borrower: Lending companies want to make sure that the borrower can pay back the loan that they receive, so you will have to have proof of income and provide them with bank information. Your income will help determine how much they are able to loan you.
As mentioned above there are differences in title loans based on the state. All states do not offer title loans.
Title Loan Amounts
The amounts of title loans range from $100 to $50,000. This is based on the borrower’s need and the value of the asset (vehicle) used as security as well as the ability to repay. The lender considers the auction value of the asset. After calculating the value of the vehicle the borrower is normally given the equivalent dollar amount of 30% to 50% of the value of the asset.
Car Title Loans
Car title loans are often called auto title loans, pink-slip loans or title pawns. This is a short term loan which has a high interest rate and keeps the borrower’s vehicle title as collateral. The borrower must have the title of the car or in other words be the owner of the vehicle (although there are special cases in which you can get an equity title loan, a loan in which you haven't entirely payed off a previous loan on the vehicle and get a title loan based on the equity you have on your car). These loans are given for a short period of time that you can decide with your lender. The time period is usually no longer than 90 days.
Applying for a Car Title Loan
Car title lenders operate out of store fronts and online. Whether you apply in person or online, the overall process is quick and easy. The applicants are asked to give information about their vehicle such as the make, model, color, VIN, mileage and your insurance information and a photo ID. Often times, the applicant is required to provide a set of duplicate keys to the car at the time of taking out the loan. The company also has to inspect the car in order to make sure it is in proper working order.
If a person is interested in getting a car title loan he should consider the following matters.
- Use resources: If a person is interested in getting a car title loan he/she should do their research about the different companies in their area that offer these types of loans in order to gain a thorough understanding of the loan process. After this make sure to check the interest rates and payback periods with each company in order to select the best fit for you.
- Review the terms of the title loan: The lender must give the terms of the loan in writing to the applicant before you sign for the loan. The cost of the loan must also be disclosed by the lender. Specifically, the lending company should give the applicant the finance charge (the total cost of the loan) and the APR (the cost of credit on a yearly basis). Car title loans may also include charges such as processing fees, document fees, late fees, loan origination fees, title charges, and lien fees In addition to the to the interest rate repayments. All of these things should be considered by the applicant prior to the signing.
- Keep an eye on the add-ons: In addition to the basic cost of the loan there might be extra add-ons which makes the overall payment amount of the loan increased so make sure to double check everything and be wary of these additional fees.
Advantages of Car Title Loans
- The biggest advantage of car title loans is the speed of the process. A car title loan can be completed within minutes on the same day that you walk into a store. This time is usually spent filling out paperwork and discussing the right loan amount for your needs.
- Since car title loans are given on the assumption of the borrower is able to pay the loan and the interest back, these type of loans can be taken by anybody as long as there’s a vehicle which can be kept as a collateral the companies and the individual has provided proof that they will be able to pay back the loan.
- The last benefit is that though the car title is kept as a security for the loan, and can be still driven by the borrower. This means that you get to keep your car and drive it while you have the loan.
Paying Back the Loan
- A car title loan can be repaid by three methods:
- In Person
- An Automated Repayment System
Ten Cars That Would Get You a Really Good Title Loan
Thinking about getting a title loan on your vehicle? CASH 1 offers the best deals in the industry based on the full value of your vehicle. Our professional and friendly loan officers will answer all of your questions and make sure you have every bit of information possible before offering cash loans, and remember; you get to keep the vehicle while you are paying off the loan.
Check out these supercars:
- Ferrari Pininforina Sergio - From the legendary Pininforina design shop comes this three million dollar roadster, only six of which will be manufactured by the end of 2017. This car’s body is all carbon fiber, has no windshield, no roof and no windows. Best of all, it runs on the Ferrari 458 Spider V-8 engine – one of the manufacturer’s quickest and most powerful – which will have you eating up even the most curvaceous of roads.
- Koenigsegg Regera – We’ll get you a good title loan deal on this 2 million dollar supercar. Check out that mini-sunroof for those times when you just want to let the fresh air in. Boasting a twin turbo V-8 gas combustion engine paired with the patented Koenigsegg Direct Drive system which uses an electric motor to boost the launch feature (that means it will go much faster from a dead stop than a car with similarly equipped engines). We’re not sure how that single windshield wiper manages to cover that curved windshield but we’re willing to overlook it if you are.
Photo: David Prince | Shutterstock.com
- Aston Martin Valkyrie – Remember the Aston Martin DB5? The DB7? The Vanquish? Aston Martin is the preferred mode of transportation for James Bond. We think he’ll want to trade in those models for this one (and maybe get a title loan) after he gets a test drive. No specs on the engine for this 2017 model year, but we’re betting the car has some pep to it and can probably handle the curves, as well as the international supervillians.
Photo: J. Robert Williams | Shutterstock.com
- McLaren P1 LM – Meet the new king of the Nuhrbergring; the test track where the fastest cars are put through their paces. At nearly 4 million dollars, this sweet ride has an automatically extending rear spoiler for those times when velocity really starts to increase (CASH 1 always recommends you drive your supercar – as well as your regular car – responsibly). Breaking the record for the fastest lap time previously held by the Bugatti Chiron, McLaren is once more part of the elite division of cars you probably can’t afford but could get a great title loan on. And speaking of the Chiron:
Photo: Maksim Toome | Shutterstock.com
- Bugatti Chiron – With its distinctive horseshoe grill and swooping air intake panels, this amazing car clocks in at 212 miles per hour with a title loan snagging two and a half million dollar price tag. The quad turbo W-16 engine might not save the most on gas, but it will get you where you need to go in a hurry. That’s 1500 horsepower cranking through the drive shaft and spinning those oversized wheels, but we bet you don’t mind.
Photo: Zavatskiy Aleksandr | Shutterstock.com
- Ferrari LaFerrari Aperta – Whether you’re cruising around with the top down or on your way to collect your newly approved title loan, Ferrari’s 2 million dollar electric supercar not only charges itself (not kidding) but does so every time you let up on the accelerator. They’re keeping secret about the technology required to accomplish this, but one thing that’s not on the QT is the top speed of 217 miles per hour and the 0-60 time of less than two seconds; a record for an electric vehicle. So not only do you save on gas, help protect the environment, and get around town quickly, you do it in style. We approve.
- Maybach Exelero – Do you care about the engine performance of the standard V-12 or the 4 million dollar price tag? Of course you don’t, you’re cruising around in one of the coolest looking cars ever to hit the road. A concept vehicle back in 2015, the Exelero was greeted with demand for a production model and is ready to drive this year. Probably comes with an amazing sound system and leather seats but again, who cares when your car looks like this?
Photo: Gustavo Fadel | Shutterstock.com
- Lamborghini Veneno – What’s the price tag? It’s a Lamborghini. What are the specs on the engine performance? It’s a Lamborghini. What kind of options of innovative technology does it come with? It’s a Lamborghini. Some automobile brands don’t have to answer questions, they just ride on their reputation for being among the fastest, coolest looking and best value for a title loan supercar on the market. Do you want one? It’s a Lamborghini.
Photo: Steve Lagreca | Shutterstock.com
- Lykan Hypersport – We’re not sure what those kind of doors are even called, but we are sure Batman calls this automobile “my other car”. At a mere three and a half million dollar price tag and sporting a peppy 240 mile per hour top speed, the Lykan was featured in the 7th ‘Fast and Furious’ film and collectors clamored for a production model. They got it, and you can get a pretty sweet deal on a title loan if you’ve got one.
Photo: Zavatskiy Aleksandr | Shutterstock.com
- Pagani Huayra BC – We’re not entirely sure how to pronounce the car’s name. We’re also not entirely sure it matters to the those who own one. Three million dollars not only gets you a difficult to spell title, but a 6 liter twin turbo V-12 screamer that will bring you to the doors of the title loan store in short order. The BC model, and improvement over last year’s version, shaves almost 150 milliseconds off the shift gap thank to Pagani’s obsessive fine tuning of the transmission. We bet you won’t even notice the difference.
OK, we took the opportunity to have a little fun and look at cars we’ll probably never get to own, but we’re definitely not kidding when we say you will get the best possible title loan for your vehicle. Come see us or click online to find out more information and again, please drive your exotic car responsibly.