Wondering About Yor Car Title Loan Estimate? Here’s How Your Car’s Value Is Determined In CanadaFast Action Finance
If you’re in need of some short-term cash, a car title loan estimate could be a good option. A car title loan is taken out against the value of your car.
Your car is used as collateral. Therefore, you won’t need to sign a bunch of lengthy paperwork other loans might require. Also, if your credit history isn’t spotless, you don’t have to worry. You won’t need to go through an unnecessary credit check.
If you own a car in good condition and a clear title, you could get a decent loan.
How to Apply for a Car Title Loan
Before you apply, do some research on how much your car is worth. This way, you have an idea of the amount to ask for. You also want to be prepared for a reasonably possible amount.
Most of the time, you can find a title loan company who offers online applications. You can also visit them on site to fill one out.
After you’re done with the application, you’ll need proof of residency and identification. You’ll also need to provide your car’s title.
Your loan company will verify that your title matches your vehicle.
From there, the loan company will do its own valuation process to determine how much you qualify for.
Once they find out what your car value is and how much they can offer you, everything can be finalized. Your loan company will give you your loan amount as well as the terms of the loan.
Do Your Research
As stated above, you’ll want to do your own research to give yourself an idea of what to expect.
You’ll want to consider all variables of your car, it’s the condition, and your financial state. Make sure you underestimate it. After all,Â the loan amountÂ will be determined by what the loan company finds, not you.
Your Car Title Loan Estimate
The loan you get depends on your car’s worth. Cars that can get the most out of a loan are newer, have little or no damage, and have a clear title. How much that is, exactly, is determined on a case by case basis.
Each car and the loan associated with it is unique. There are many things to consider when determining the loan value, but here are some of the key factors:
The Car’s Equity
To estimate your car’s equity, find out how much it’s worth and subtract the total you owe. A car has equity when it’s worth more than what you owe on it.
If this is the case, the loan company would pay off the rest of the current loan and add that amount to your new loan. The more your car is paid off, the more likely you’d get a larger loan.
Your car loan will likely be similar to your car’s trade-in value. However, this might look different from the value you’d find inÂ Kelly Blue Book.
It may also look different from its private property value. The private property value is the amount you would get if you sold the car privately.
Your loan amount will probably be based on a percentage of the private property or Kelly Blue Book value.
The Condition of the Car
Every car’s history is different. Wear and tear as well as damage both take a toll on the car’s lifespan. The more damage there is, the more it chips away at the possible loan value.
Here are some things that will be considered:
- Are there any scratches, rust, dents, or other body damage?
- How many miles does the odometer show?
- Does the title show that the car was in an accident?
- What is the tire condition?
- What is the condition of the car’s interior?
There are other considerations that don’t have anything to do with the value of the car. They do, however, affect the possible loan amount.
Your loan company wants to make sure you can repay the loan in a reasonable time frame.
You will need proof of a verifiableÂ monthly income stream. How much you qualify for will be determined by how much you make.
Depending on where you live, different laws and regulations come into play for title loans. Your local government also determines what the loan minimum and maximum amounts are.
You may not want to go with the first loan that comes your way. Compare the offers available and see which one is best for you.
Interest Rate and Fees
Even if a percentage rate seems small, it can have a big impact on the overall cost of what you owe. Hidden fees can also drive up that cost. Read the fine print and ask about them.
Generally, you’ll be able to borrow between 25-50% of your vehicle’s value. Different companies may be able to offer you a different percentage.
Length of the Loan
Each provider will have a different loan term. You might be able to borrow the amount for a couple of years. Or, you might have to pay it back within a few weeks.
Flexibility in Payment
Ask if you can schedule payments based on when you get your paychecks. This might help you budget your expenses.
Some lenders might charge you extra fees if you make the choice to overpay. Ask about it before you sign the paperwork. You don’t want to end up paying more when you aim to pay it early.
Deciding on a Car Title Loan
Before you jump in and apply for one, it’s good to do your own research. Find out what your car is worth and factor in all the variables. Know a rough number for your car title loan estimate and expect a lower amount.
The actual amount you’ll get depends on a lot of factors, and in the long run, it’s the title company who decides. Ultimately, it’s your own decision if it’s the right call for you.
When you’re ready to learn more about applying for a car title loan,Â give us a call.