How Are Title Loans Calculated?
Many individuals ask us how are title loans calculated. Different lenders use a wide variety of factors and determinations to calculate how much money they can give you with an Car Title Loans. However, not all the lenders out there will let you in on that calculation process the way that TFC Title Loans does. We do this because we strongly believe in lender transparency and consumer education so that our customers can make the best financial decisions for their financial need.
We are the oldest title loan lender in California which means we have gained some extensive knowledge from those 25 years of experience. Over those years, we have come up with new ways to get you the most value out of your title loan. Additionally, we have optimized the application process so we can give you a free quote over the phone just by knowing a few simple facts about your car. We work hard to make the process as fast and painless as possible because we know you are in need of money quickly!
Ever since we first opened our doors in 1994, we have always made customer service our number one priority. We want to help you understand each and every aspect of the lending process before you make a serious commitment. If you want to understand better how title loans are calculated, then please continue reading this resource article where we explain the process. If you would like to receive a free quote from us then fill out our online application and we will give you a call right away,
State Laws and Restrictions
Part of our calculations are determined by the existing limits and restrictions placed on title loans in certain states. These restrictions call for minimums and maximums on what title loans lenders are allowed to give to customers regardless of what the vehicle is actually valued at. Our main service areas include California, Arizona, and New Mexico. California’s restrictions are more limited than those of Arizona and New Mexico. California’s minimum amount for a title loan is $2,600 and the maximum that you can borrow is $50,000 while Arizona and New Mexico only have a state minimum of $1,000. These restrictions enter into our ability to approve you since, if you live in California, your car would need to be worth at the very least around $4,500 so that you can qualify for the minimum of $2,600. As for Arizona and New Mexico, your car will need to be worth at least $2,000 in order to qualify for the minimum of $1,000.
The Value of Your Car
Before you get your free quote from us, you can get a pretty accurate estimate on your car’s value easily enough online and that will help you determine how much you may be able to get from a title loan with us. There are tons of great car value estimators online and one long-standing free estimator is Kelley Blue Book. All you need to do is input your car’s age, make, and model to find out a decent estimate on your car’s trade-in market value. This is similar to the first step we take to determine how much money we can lend you. We put your vehicle information like the year, make, model, style, mileage, and condition into a slightly more exact value estimator to determine the trade-in value of it. Most title loan lenders will go by the trade-in market value of the car since that is the price most dealerships would pay for it.
To get you free quote on a title loan, we only need a few basic facts about your car. It’s quick and easy. And if you are interested in a more solidly defined quote with customized loan terms, we will need pictures of your vehicle so that we can confirm the mileage and the condition of your car.
How Much We Can Actually Lend
After we have run your vehicle information through the estimator and have a clearer picture of the trade-in value of your car, we will be able to determine the lendable amount out of that trade-in value. Usually, we offer around 50% of the trade-in value to our qualified applicants. Upon occasion, there is the possibility of qualifying for more than the typical 50% or less than that. Getting more or less than 50% of the car’s trade-in value is dependent on the customer’s proof of income. We avoid, at all costs, overextending our customers because we don’t want to put them in a precarious financial position.