One of the key benefits of owning your own vehicle is never having to worry about the possibility of your car being towed away to an impound lot. If you don’t have a dealership or bank that has a lien on your car anymore, any worry about missed car payments is long gone. However, missing a car payment is not the only reason that a car may be impounded. In fact, there are several other reasons why someone who owns their vehicle may need to seek out a car impound loan. For example:
Any of these examples could happen to a car owner, and unfortunately, impound fees aren’t always as simple as they seem.
When a vehicle is impounded for any reason, it is first towed to a storage lot. There, it is likely inspected and registered into some kind of system. During this time, any fees or payments that were missed, which caused the impound in the first place, will be added up and levied. All of these costs are required to be paid up front and in full before a car will be released to its owner. In many cases, the possessions in the car are considered property of the lien holder if the missed payments or fines are not paid.
So when a car owner goes to the impound lot to get their car back, they may be required to pay the following fees up front (as they apply to their specific situation):
When all of these costs add up, particularly the expensive storage, as well as the payments or legal fines, this can represent a very large sum of money. For this reason, car impound loans are something that many people are forced to consider.
Can an Auto Title Lender Help with an Impounded Vehicle?
When you first think of a loan to help get your car out of impound, you may not immediately think of an auto title lender. After all, one of the key requirements of most title lenders is a free and clear title, with no liens, as well as the ability to visually inspect the car to determine its value. However, there are many title lenders who can help when you need a car impound loan.
Because impound loans can be different for every situation (some impounds may not require that a lien be placed on a vehicle, for example), the ability of a title lender to help will be different for each situation. For the most part, the only obstacle that a title lender wouldn’t be able to overcome when offering a car impound loan would be the 30-day hold that the city police or DMV place on a vehicle if it was involved in a crime.
In these cases, that 30-day hold would need to have expired, and all legal matters with the police and DMV would usually need to be cleared up before a title lender could help. This may be due to the lender needing access to the vehicle to assess its value for a loan, or it may be due to the laws specific to your state or county.
Auto Title Loan for Impound Costs
These loans are based totally on your income, and have nothing to do with your car, so it’s easy to see how these may be options for some.
With an auto title loan, borrowers can receive loans for several thousand dollars, up to the amount that the car is valued at. Additionally, most Car Title Loans and our other loan types are given with 30- to 60-day terms, so it’s easier to pay off the loan without having to give up an entire paycheck all at once.
How to Get a Car Impound Loan
If your car has been impounded, and you don’t have the savings to cover the cost, your first thought may be to head to a bank or to friends or family. But there’s a problem with these routes: the longer your car sits in impound, the higher the storage fees will be. These types of loans take time, for an application to go through, or for friends or family to withdraw money themselves.
Auto title lenders are very fast to work with, and in most cases, a car impound loan from a title lender can be approved in a single day. If an auto title lender can’t inspect the car for value because it’s impounded, they may be willing to assess the value based on online sources like Kelley Blue Book. The only things that a borrower typically needs for these types of loan are a vehicle title in their name, and a valid driver’s license. Some title lenders may require that the driver carry gap insurance on the car until the loan is paid off.
You don’t need to have good credit, and in many cases, auto title lenders don’t ask about your income or your borrowing history. In order to get a car impound loan fast, and with the least amount of invasive questioning, an auto title lender may be one of the best options for car owners.
Choosing the Best Car Impound Loan
There are many options for title loans, and that means that a smart borrower should do a bit of homework before getting a loan. Be sure that you’ve looked up the basic laws for your state regarding Car Title Loans, so that you know what to expect for fees, interest rates, and minimum borrowing amounts.
Look for a title company that offers rollover or extension plans, if you can. If you find that the end of your 30-day or 60-day term has come and you haven’t paid off the loan, you can use an extension as a “refresh”, to add more time to your terms and make it easier to continue paying. Also, it’s a good idea to ask what the policy is for early payoff; many auto title lenders don’t impose fees if a borrower pays their loan off early, which helps save money on the interest that would have accrued.
There are several ways that an auto title lender might offer for a borrower to pay back their car impound loan. For example, a balloon payment plan is one in which the borrower pays back small payments that cover just the interest until the end of the term, and then one large payment that covers the loan principle. This is not a popular option for borrowers because it means you can’t save money by paying off the loan early and avoiding the later interest. Look for a title lender that has plenty of payment plan options so you can choose the best for your budget.
You should also be careful to choose a title lender with a good reputation. Look for a lender that has good online reviews, or that is willing to share references that you can check. While having your car impounded can be very stressful, and you are often just looking for the fastest loan to get it out, you should still do your best to choose a good lender. You’ll still be able to drive your car while you are paying on the loan, but they will have a lien on your title while you pay. With the right auto title lender, car impound loans will be easy to apply for, approved quickly, and easy to pay back.