Financial hardships come when least expected. A cash title loan is an excellent way to access funds worth part of your vehicle’s value without selling it. Cash loans for car titles appeal to borrowers who need access to funds to cater to liabilities or personal expenses. Read on to discover whether you can get a cash car title loan.
What is A Cash Loan for a Car Title?
A cash title loan allows you to borrow a small amount for a short loan tenure, using your vehicle’s title as collateral. The car title loan lender allows you to take out up to a certain percentage of the vehicle’s value (usually 25%-50%). Once approved, you can get the cash you need within a business day.
However, if you default on the loan, the lender may repossess your vehicle. Most car title loan lenders prefer borrowers only to use lien-free vehicles as collateral. However, some lenders may provide financing for vehicles that are not fully paid off.
Interest rates, loan amounts, and other stipulations vary by the lending institution and, to a greater extent, the state. The average loan duration for a cash loan for a car title is 15-30 days. In some jurisdictions, the loan tenure can go for over a month.
Lenders require loan applicants to have an automobile, its title, proof of insurance, a photo ID, and sometimes, a set of car keys. Some lenders can also require you to invest in a GPS tracking device or roadside assistance, particularly when they allow you to keep the car as you repay the loan.
Recommended read: Car Loans Near Me – How to Find The Right Car Title Loan for Your Needs
How Does The Process Work?
The borrower first takes their vehicle to the lender for appraisal. The lender determines the loan amount using a percentage of the vehicle’s worth. You can get the cash you need within a business day, but the lender will keep your vehicle’s title as collateral until you fully repay the loan.
If another person is mentioned on the title, your lender might have to reach out to that person before they approve the loan. Don’t hesitate to ask about refinancing if you already have another car title loan.
Typically a cash loan for a car title can be:
- Installment loan– This loan repayment plan allows the borrower to spread out the loan payment over a long period. These types of arrangements typically carry a higher interest rate.
- Single–payment loans- In a single-payment arrangement, the borrower is expected to pay a single lump sum 15- 30 days after taking out the loan.
Understanding the loan repayment terms before signing up for the loan offer is essential. You can make the payments in cash at one of the lender’s branches or use a bank transfer. Most car title loan lenders have fewer requirements and conditions for borrowers, such as not requiring them to provide evidence of income.
Am I Eligible to Get a Cash Loan on the Car Title?
You need to own a car and be at least 18 years old. The lender will require you to prove your age by providing a government issued-ID. Your car title should also be in your name and lien-free. You will receive a higher or lower interest rate if you have a steady source of income. Your income can be from your regular salary, pension, or unemployment benefits.
The lender may also require you to provide a document establishing your residence. This can include a bank statement, utility bill, phone bill, or any other document showing your address.
If you meet these requirements, you can apply online or in person. One of the main advantages of applying at one of the lender’s branches is that a loan specialist will immediately inspect your car and give you a loan offer. Once you agree to the offer, you will receive the cash you need to get through the challenging financial situation.
Apply for a Cash Loan on Car Title Today
Whether you need to clear a utility bill or have an unexpected medical expense, a car title loan might be just what you need. Generally, the loan application and approval process are straightforward, and the cash you receive could give you peace of mind.
At Jacksonville Title, we understand how frustrating it can be for you if you cannot get the cash you need during financial difficulties. For this reason, we offer cash loans on car titles to borrowers who cannot secure loans from conventional lending institutions. Visit our offices, receive a loan offer, and drive away with the funds you need to pick up the pieces.