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28 Jun 2019   /   0 comments

How Much Can You Get on a Car Title Loan?

Paul

How Much Can You Get on a Car Title Loan?Ask any US citizen what he/she thinks about the bank lending process and they probably say what finding and getting a loan approved by the banker is a difficult task. Many do not know what their options are when it comes to an alternative to traditional bank loans. Unfortunately, it is not far from the truth.

Bankers have become accustomed to eliminating the riskiest borrowers with bad credit backgrounds. Banks do not want to lend money to people who need it. With interest rates at historic lows, banks are just making it hard and harder to get a loan. When it should be getting easier to get a loan, it just seems to be getting more difficult.

How Much Can You Get on a Car Title Loan?

One of the first things that people ask us is: How Much Can You Get on a Car Title Loan? Lenders use a wide variety of factors to assess and determine the value of your vehicle and how much they can lend you on it. However, not all lenders have the same process as requirements vary by company and state.

What is a Title Loan? 

How much can you get on a car title loanA title loan is essentially a loan with a requirement of an asset as collateral. This is a type of secured loan. Borrowers who get a car title loan must allow lenders to place a lien on their car title. This means a temporary surrender of the hard copy of their vehicle title in exchange for a specific loan amount. Title loans are truly popular for the following reasons:

  • An applicant’s credit score and rating is not taken into consideration when qualifying consumers for the potential title loan.

  • A title loan can be approved extremely fast, with amounts going as low as $100.

The most common form of title loan is an auto title loan. Potential borrowers are required to own a vehicle outright. They then sign over the title to an car loan title company, like TFC Title Loans! The loan company typically lends up to 25% of the vehicle’s total value to the borrower. The lender keeps the car title as collateral in the case of default.

How Does a Car Title Loan Work?

how much can you get on a car title loan and how does a car title loan work?So, how does a car title loans work? Car Title Loans are typically short-term and tend to carry higher interest rates. Lenders typically only consider the value and condition of the vehicle that’s being used to secure the title loan.

Potential borrowers can pay their car title loan back with a single payment after a month, or, repay the loan over a two-year installment plan per agreement with lender. Timely payments will put you in a solid position with both the lender and credit companies. Your score will maintain and rise, giving you the opportunity to experience a little more financial freedom! In this day and age, who wouldn’t want that?

If you default? Remember, the lender has the car title and may potentially have the car towed. They then can sell the car to make up for lost cash during the car title loan transaction with the borrower. It can also lead to a court order where you’re forced to payback the loan within a specific time frame or penalties will incur. Stay diligent and on top of payments and your own finances, you’ll end up in a solid place!

State Restrictions on Car Title Loans

State Restrictions on Car Title LoansThere are title loan limits and restrictions in certain states that call for minimums and maximums on what lenders can give to borrowers regardless of what the car in question is worth. These tend to be stricter in California than they are in Arizona and New Mexico. California’s minimum for a title loan is $2,600 and you can borrow up to $50,000. Arizona and New Mexico both have a state minimum of $1,000.

If you are looking to get a title loan in California, then your car ought to be worth at the very least around $4,000 and if you are looking to get a title loan in New Mexico or Arizona, then your car ought to be worth at the very least around $2,000. Visit your local DMV in person or check online to determine whether or not your state has restrictions on title loans.

Determining the Value and How Much You Can Get on a Car Title Loan

You can get an idea about the value of your car before even speaking with us if you wish to by checking out any number of various car value estimators. One long-standing online free estimator is www.KelleyBlueBook.com.  That is usually the first step we take in determining how much we can lend you. We run your vehicle through a more exact estimator to determine the trade-in value of it by using the year, make, model, style, mileage, and condition. Most lenders go by the trade-in value of your car since that is what most dealerships would pay for it if you were to get rid of your car.

how much can you get on an auto title loan with bad creditTo give you a free quote, we only require the basic facts. To get you a more solid quote with loan terms, we require pictures of your vehicle to verify the mileage and the condition of your vehicle. Then when we pass over the money that you are borrowing we like to take a quick look at your vehicle in person so we can verify that the pictures were accurate and current.

You can use and utilize online resources to determine how much you can get and how much you’ll be paying over the lifetime of the car title loan. Using our car title loan calculator can put you in a position of a broader understanding of how much out-of-pocket expenses you’ll be giving towards the loan payback. In doing so, you’ll be able to compare multiple lenders, offers, and rates to determine which title loan offer best suits you.

Remember, doing you diligent research by comparing lenders and creating a monthly budget plan can truly help you obtain the best deal. In doing so, you’re putting yourself in a greater position of approval for not only a title loan, but for credit and/or another type of loan down the line in your future.

Read more about determining your car value and car appraisal from https://www.edmunds.com/appraisal/.

Determining How Much We Can Lend

Once we have determined a more exact picture of the trade-in value of your vehicle we can cut that down to the lendable amount for your collateral title loan. We are usually able to offer around 50% of the trade-in value price to qualified applicants. You can occasionally qualify for more than 50% or sometimes qualify for less. No overextending to our customers because of the high risk it poses to both us and them. We never want to put you in a situation that you cannot handle.How Much Can You Get on a Car Title Loan

The Car Title Loan Process

car title loan checklistBorrowers seek the services of a potential lender either in-person or through online title loan applications. When securing the title loan, the potential borrower needs to have specific forms of identification in order to apply. These items include:

  • A government-issued ID.
  • Proof of Income
  • Proof of Residency
  • Car Registration & a lien-free Car Title in your name
  • Personal References
  • Car Insurance (Not required in all states)

About TFC Title Loans

We have been in the title loan industry since 1994 and we have gained extensive knowledge of satisfying customers. There are new ways of valuing your vehicle and determining a lendable amount so that the process will be as easy as possible and you will be able to borrow as much money as you might need. Usually, we can give you a quote over the phone by knowing just a few simple facts about your vehicle. We go to all this trouble to make the process as quick and painless as possible because we are aware that you are probably in a hurry and need money quickly.

Read more about title loans from https://en.wikipedia.org/wiki/Title_loan.

Top Notch Customer Service at TFC Title Loans

For almost 25 years, we have consistently made our customers our top priority which is why we care about transparency and consumer education. We want to help you understand each step of the lending processing before you make any commitments. If you decide that your car has enough value in it or you would like to receive a free quote from us on your vehicle, then fill out the online application or give us a call at 844-242-3543 today! Or, if you have any additional questions on how much can you get on a car title loan? Contact us and we’ll happily walk you through the process. 

“How Much Can You Get on a Car Title Loan” is brought to you by TFC Los Angeles. (c) 2019 “How Much Can You Get on a Car Title Loan”

Frequently Asked Questions
How Much Can You Get on a Car Title Loan?

Title loans are given based on the value of the owned property.

Do car title loans work the same as home title loans?

Yes, both title loans are given based on the value of the owned property.

Can I get a second car using a title loan?

Absolutely. The key is using the first car's title to put a down payment on your next vehicle. You can build a car collection quickly using this strategy. If you have any questions about which new or classic cars to buy, ask TFC Car Title Loans.

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