If you need extra cash to make ends meet, you may think taking out a traditional personal loan is your only option, but that’s not the case. If you own a vehicle, you may qualify for an auto title loan.
Auto title loans, also known as title loans, are secured loans that allow you to use the title to your vehicle as collateral. You won’t need to give up your vehicle in order to borrow money through a title loan. You can continue to drive it as you normally would while you make payments on your loan. In the meantime, the title loan company will hold onto your title or put a lien on it until your loan is paid off.
Title loans are typically processed quickly, which is why they are perfect for people who need fast cash. Plus, it’s much easier to qualify for a title loan than it is to qualify for a traditional personal loan. This means you may qualify for a title loan even if you aren’t eligible for a traditional personal loan.
If you’re considering applying for a title loan, you might be wondering whether your car will be accepted as collateral. Can you get auto title loans with any car? Here’s what you need to know:
What Vehicles Can You Use to Get Auto Title Loans?
Every title loan company is different, but in general, lenders accept a wide range of vehicles as collateral for title loans, including:
- Pickup trucks
What Factors Will the Title Loan Company Consider When Determining If Your Vehicle Qualifies?
- The Vehicle’s Resale Value
- Your Equity
The Vehicle’s Resale Value
Your lender needs to know how much your vehicle is worth before determining if you can use it as collateral for a title loan. To calculate its resale value, the lender will evaluate your vehicle’s make, model, year, condition, trim level, and mileage.
If you aren’t sure how much your vehicle is worth, you can either contact the title loan company or use a free online tool to estimate its value.
Your lender will also consider your equity in your vehicle when determining if you can use it as collateral for a title loan. Your equity is the difference between your vehicle’s resale value and the amount you still owe on it. In other words, it is the amount the lender will be able to recoup in the event they need to take possession of your vehicle to satisfy your debt.
Can You Get a Title Loan If Someone Else’s Name is on the Title?
Your car title is one of the most important documents in your possession because it establishes legal ownership of your vehicle. The person who is named on the title is legally recognized as the owner of the vehicle. You cannot use a car as collateral for a title loan unless you own it. For this reason, your name must be on the title you are using as collateral.
Some titles include more than one name. For example, if you share ownership of a vehicle with your spouse, both of your names may be listed on the title. This means you are both legally recognized as owners of the vehicle.
You can still use a title as collateral for a title loan if there is more than one name listed on it. All that matters is that your name is one of the names printed on the title.
Can You Get a Title Loan With a Salvage Title?
If your vehicle has a salvage title, you may be wondering whether you can still use it as collateral to secure a title loan.
Salvage titles are issued to vehicles that have suffered extensive damage in traffic accidents or other incidents. If a vehicle has a salvage title, it means that it has been declared a total loss by an insurance company. In other words, the cost of repairing the vehicle’s damage is equal to or greater than the car’s value.
For example, if your vehicle is worth $8,000 and sustains $10,000 in damage in a car accident, it will be declared a total loss and issued a salvage title.
It’s very difficult to calculate the value of vehicles with salvage titles. For this reason, title loan companies typically will not accept salvage titles as collateral for title loans.
If you aren’t sure whether your vehicle has a salvage title, you can find out by running a vehicle history report using CarFax or another similar service.
How Much Can You Borrow By Using Your Car As Collateral for a Title Loan?
Title loans can range from $2,510 to $50,000. However, the amount you are approved to borrow will vary depending on several factors, including:
- Your income: Your title loan company will assess your income to determine how much you can afford to repay. The results of this assessment will impact how much you are allowed to borrow.
- Your car’s resale value: Remember, the title loan company will calculate your car’s resale value based on its make, model, year, condition, trim level, and mileage. You cannot borrow more than the value of your vehicle. In fact, most lenders will only allow you to borrow up to a certain percentage of your vehicle’s resale value.
- Your equity: You must have equity in your vehicle to qualify for a title loan. You also cannot borrow more than the value of your equity.
- Local laws: There are laws in some states that establish minimum and maximum amounts for title loans. If you live in one of these states, these laws could impact how much you are able to borrow by using your car as collateral.
How to Find Out If Your Vehicle Qualifies for Auto Title Loans
Fortunately, it’s not hard to find out if your vehicle qualifies for an auto title loan. In fact, it only takes a few minutes to find out if it qualifies and if so, how much you can borrow by using it as collateral. Follow these steps:
- Contact our loan specialists. There are two ways to get in touch with a loan specialist. You can either call us directly at 1-855-713-6522 or submit your information using the form on our website. If you choose the latter option, a loan specialist will reach out to you shortly.
- Answer some questions about your vehicle. Your loan specialist will need to know some basic information about your vehicle, including its make, model, year, condition, mileage, and trim level. Make sure the information you provide is accurate. If it’s not, the terms of your quote may need to be adjusted once you provide accurate information.
- Review your quote. Your loan specialist will prepare a free quote based on the information you provide. Review this quote to find out if you qualify, how much you can borrow, and at what interest rate.
That’s all it takes to find out if you can use your vehicle as collateral to get a title loan. If you’re satisfied with the terms of your quote, your loan specialist can walk you through the remaining steps of the application process so you can get your cash as quickly as possible.