A car title loan is one of the fastest ways to get quick cash loans if you own a car free and clear with the title in your name.
To get this type of loan, you need to have a source of income to repay the loan and also have the title of the car in your name.
A car title loan is a type of secured and short-term loan that is specifically meant to provide financial aid to individuals with bad credit.
Since it is a secured loan, you will need collateral to get the loan. Your car is the collateral you will use in securing a car title loan.
Whether you have bad credit or don’t have a credit history at all does not matter when you apply for a car title loan since there are no credit checks.
How to Value a Car for a Title Loan?
Your car needs to have enough equity for you to use in securing a title loan. The equity of your car is determined by several factors such as make, model, year, and mileage among others.
The equity gives you the current market worth of your car. the higher the equity of your car, the higher it is worth and the higher the loan amount you can get.
Your car can have either negative or positive equity
Negative Equity: If the current worth of your car is lower than the amount you are owing on it, then your car has negative equity. Hence, if you are owing on the car and it does not have a high resale value, you are likely to have negative equity.
Positive Equity: If your car is worth more than the amount you are owing on it, then your car has positive equity.
You can use an online title loan calculator to get the current worth of your car. all you need to do is to provide information such as the make, model, year, and mileage of your car to use the online title loan calculator.
Factors That Affect the Title Loan Value of your Car
The amount of money you can borrow depends on the worth of your car. Usually, lenders lend a certain percentage of the worth of your car to borrowers. Some offer up to 50% or more depending on your lender.
Some of the factors that affect the value of your car include;
Model and Make of Your Car
The worth of cars whose make and model are popular and in high demand is higher and as such, they are worth more.
Condition of Your Car
Your car has to be in good condition for its worth to be high. The mileage of your car might increase or decrease the worth of your car. A car with high mileage will be worth less while that with low mileage is usually worth more. The mileage of your car is greatly affected by its year.
Modifications of a Car
One big factor that can affect the worth of your car is alterations to the car. for instance, if your car has a new engine, it will be worth more than a car that has the original engine. A new engine gives your car an economic edge.
Incorporating certain features that are not in your car can either increase or lower the worth of your car.
Vehicle Year
The year of your car affects the current market worth of your car to a great extent. Newer versions are worth more than older versions.
These are some of the things that can get to affect the worth of your car and how much title loan you can get when you apply for a car title loan with your lender.
Contact us today, we will be your car title loan broker. We will help you to get the maximum amount of money on your car title.
