Unless you are getting a new car, it is more beneficial to hold on to the vehicle you have and take out a loan with low, fixed-rate payments when you are in a financial bind rather than selling your prized possession. By selling your car, you clearly strikeout an opportunity to get a second loan which you may still have on paying off your title loan on time and in full. That is how you can make use of the equity in your car, motorcycle, RV or truck to pay your unexpected bills until their value depreciates to nil.
Why Is the Title Important for Title Loans?
If you search for the definition of a title loan, every loan company may define it according to their loan terms and conditions, but the general view is the same everywhere you go. A car title loan is a secured loan where you use your vehicle as collateral. Even at CASH 1, to get a title loan all you need is a clear title of your vehicle and a proof of income that ensures that you can repay the money that you borrow. So, if you don’t have your vehicle title or a lien is placed on your vehicle, does that mean you won't get a title loan? Short answer: not necessarily. Many customers ask us this question, and we are here to answer this and some issues related to getting title loans on cars not paid off.
What Is a Lien on a Car Title?
Understanding what it means to have a lien on your car and what is a lien should be a priority. When we talk about auto title loans, lenders place liens on vehicles that are used as collateral. This gives them the right to keep possession of the title of the property that belongs to you until the loan taken against it, is paid off. The title will still have your name on it; however, the title loan lender who has placed the lien on your vehicle will have the original copy with them and also get legal rights on that vehicle. The purpose of putting a lien on your vehicle is to ensure the lenders will receive repayment on your registration loan by actual compensation or by repossession.
Can You Get a Title Loan with a Lien Already on Your Car?
When you have a lien on your car title, it indicates that you don’t have the physical copy of your vehicle’s title. At CASH 1, getting money when you need it can be fast and easy when you have a clear vehicle title with you that can be used as collateral. You can apply for a title equity loan online, over the phone, or at one of our convenient store locations in Arizona or Nevada without worrying about your credit score. This is the option for those of you that already have a lien on your car. If you are not happy with your current title loan lender, you have an option to refinance your title loan with us. By doing this, you can save money on your new loan to meet or beat the interest rate of the old title loan. To get a title loan with a lien from us, you will have to talk to our customer service representative so we can understand the terms of your existing loan and find a way for you to get the funds you need.
How Do Title Loans with a Lien on the Vehicle Work?
While I'm sure you are delighted now that you know that you may still be able to get a title loan with a pre-existing lien on your car, you probably want to see how the funds are granted and the basis for deciding whether or not those funds will be given to you. Although each title loan company that provides a title loan with a lien may have their procedure to approve the funds, a majority of them consider how much they will have to pay to get rid of your existing lien on your vehicle. Next, they will look at how much you want to borrow in addition to that amount. If you can meet their criteria they set to receive a loan of that amount, you will get money equal to the amount in excess after paying off your previous lien to use at your discretion.
Here Is an Example of How Getting Title Loans with Liens Work:
Maybe you need to know, "How much can I get for a title loan?" Let's consider you have $2,000 outstanding on your title loan or car loan and have been approved for another title loan with bad credit for $5,000 with a lien already placed on your vehicle. The lender of title loan with a lien will first use $2,000 out of the approved amount to pay off the lien and become the temporary lien holder on your vehicle’s title. You now owe $5,000 against your vehicle title and get $3,000 to use for whatever you need.
Consider CASH 1 for Title Loans in Arizona or Nevada
If you live in Arizona or Nevada, CASH 1 offers Phoenix tile loans near you and Las Vegas car title loans. If you do have a lien on your vehicle you can receive up to $2,500 in Arizona.