Car Title Loan Amounts Can Vary Depending on Several Factors
Many Americans rely on their vehicles for all transportation. Most people drive to work or school or use them to run errands. Our cars are an integral part of our daily lives, and losing access to them can cause significant inconveniences. Did you know you can use your vehicle for more than just getting around town?
Your car’s equity can help you move forward financially and to different locations! Title loans are short-term loans that allow people to borrow money using their available vehicle equity. If you obtain approval, lenders may offer you a loan amount based on a percentage of the overall car value.
This option is considered a collateral-based loan because a physical asset is on the line if you fail to pay the money back. During repayment, lenders will place a lien on the car title and remove it afterward.
While this can be a helpful financial solution for people struggling with money, you may wonder, ‘how much cash can I get with a title loan?’. This answer can depend on several factors! Read on to learn more about online title loan amounts, or start your inquiry today by filling out this pre-approval form or calling to speak with a title loan agent from Loanmart.
How Are Title Loan Amounts Calculated?
The amount you may receive from a title loan can depend on how much value is in your vehicle and if you have enough consistent income to repay the loan. In most cases, title loan lenders will offer borrowers a percentage of their car’s equity, anywhere between 25-50%. The most you can get with a title loan will depend on your income and the value of your vehicle.
Determining your car’s equity is essential for estimating how much you may get from a title loan. Car equity means the amount of value a vehicle has with the amount you still owe on it subtracted. If you owe more than what your car is worth in payments, you may have negative equity and, therefore, not qualify for a title loan.
You must have some positive equity to apply for an online car title loan. You can apply for a title loan while your car is financed as long as it’s close to being paid off.
If you want to find out how much value your car has, you can use helpful websites like Kelley Blue Book to receive an estimation against the current market value. Vehicles with higher values or more equity may receive higher loan amounts than those neglected over the years.
However, just because a car is new doesn’t mean it will be worth more than an older one. Some vehicles, like Volkswagen models or the Ford F-Series, have remained consistently popular over the years because they are in high demand.
What Else Do I Need for a Title Loan?
Applying for an online title loan can be convenient as long as you meet the requirements and have the correct paperwork on hand. With the necessary documents, you may qualify for funding. The great thing about this financing option is that it can be accessible to people from various career and financial backgrounds.
For an auto title loan, you must have the following:
- Valid Government or State Issued Photo I.D.
- Proof of Residency
- Proof of a Qualifying Vehicle Title in Your Name
- Proof of a Steady Income
- Recent Photos of the Vehicle
You must be able to prove that you are an adult at least 18 years or older to apply for a title loan. You can do so by showing a valid driver’s license or passport. You also must prove that you live in the state where your car title is registered. This document is essential because title loan laws can vary from state to state.
Next, you must have a qualifying vehicle title in your name. If you need help obtaining a vehicle title, contact the DMV in your state for information. You will also need to provide proof of a steady income. This regulation is a federal law that prevents predatory lending practices! By showing proof of income, you are proving that you can repay the money.
Finally, lenders will want to see recent photos of the vehicle to conduct a virtual inspection. Make sure your pictures are clear and direct– blurry photos may slow the approval process.
Apply for an Auto Title Loan Today if You Need Cash Quickly!
The determining factors around auto title loan amounts can vary depending on several factors. The best way to determine how much you can get is by starting the inquiry process! Start by filling out the pre-qualification form or calling to speak directly with a title loan agent.