An auto title loan provides a way to get cash for your car's title but keep the vehicle in your possession. These loans are not challenging to obtain or qualify for, but the lenders that issue them have eligibility requirements you must meet. If you have never taken an auto title loan, it might help you to know the following three things before applying for one.
You Need the Title
First, you cannot borrow money through a car title loan if you do not have the vehicle's title in your possession. Additionally, you cannot borrow money through this type of loan if the title is not in your name. If you and another person own the vehicle and both names are on the title, the other person must be present when taking the car title loan. Auto loan lenders cannot issue loans on vehicles when they cannot verify the ownership rights to the cars. Therefore, lenders are strict about this issue. They will not approve a loan unless you meet these requirements.
You Cannot Borrow the Full Value
Two, you cannot borrow 100% of your car's value through an auto title loan. If your car is worth $4,000, the lender will not loan you $4,000. Instead, the lender may offer a percentage. The percentage varies, and you can ask the lender ahead of time what percentage they use. Before the lender issues the loan, they may ask to see the vehicle to appraise it. Lenders must ensure that you have the vehicle in your possession and that it is drivable. They must also make sure it is worth the money you claim.
You May Have to Agree to Use a GPS
If the lender approves your car title loan, they may ask you to agree to a GPS. They will install the GPS in your vehicle, and they may decline to give you a loan if you do not agree to it. The purpose of the GPS is to track you only if you default on the loan. They will not monitor your movements or locate you unless you default.
Auto title loans are one of the easiest loan types to qualify for and get if you have a vehicle and title. If you have questions about auto title loans or want to apply for one today, contact a lender to learn more about the process. If you get started now, you can have the proceeds within a few hours.