How to Determine Your Car’s Value Before You Apply For A Car Title LoanFast Action Finance
Irrespective of whether you have a good credit score or a bad one, a financial emergency may occur at any time. In case you have a good credit score, there is no need for you to worry. You could just walk into any financial institution and ask for a loan. It is most likely that you can get help. However, if your credit score is a bad one, the same results cannot be expected. In such an instance, your car could help you secure a loan. In order to get the loan it is necessary for you to know the value of your car. Now the question arises how to evaluate your car in order to know its value.
Knowing the value of your car is important. This is because most financial institutions that offer loans to those who have bad credit keeping their cars as collateral will pay only a certain percentage of the car’s worth. In order to get the maximum amount of money as the loan, it is a must for you to know the market value of your car.
Since there are many different factors that decide the value of a car such as the condition of the car, the extra accessories you have bought for it, the condition of engine, level of the wear of tires and many others, it is necessary for you to evaluate all these factors in order to find the value of your car.
Factors that determine the value of your car
â€˘ Make and the model
It is obvious that the brand of your car and its model are going to be major factors to be considered in its valuation. There are some makes and models that fetch high prices while others do not.
â€˘ Year of manufacture
Year of manufacture is one of the most important aspects that will decide the value of your car. An older model will be cheaper than a new model even if the car has run for a lower mileage.
â€˘ Condition of your car
When an enthusiastic owner uses his car, he will look after and maintain it well. It is not the case with a car owner who doesnâ€™t care about his car. Therefore, when cars are used for some time they will not be in the same condition. As such, condition also plays an important part in determining the value of a car
Condition of a car will always depend upon the mileage it has covered. The more you run it, the more will be the depreciation. Therefore, a car with a higher mileage will have a lesser value.
â€˘ History of the vehicle
A car that has a clean history will fetch a higher price while one that has met with accidents and repaired later will have a lower value.
A car with accessories such as sound systems, alloy wheels, burglar alarms and reverse cameras will be more valuable than ones with no extras fitted. This is especially so for old cars that didnâ€™t have them as standard accessories fitted in factories.
â€˘ Location of the car
Location of the car is also important when deciding its current value. This is why when you try to use Kelly Blue Book they ask you to enter your zip code. For instance, a four wheel drive SUV useful when driving in snow may fetch a higher price in Michigan but it will not be that valuable in New Mexico.
â€˘ Overall appearance of the car
When one looks at the car it must show that it is a well maintained car that has been well looked after. The body should not have dents and the paint need to be glittery. Even the seats and the dashboard should not show wear and tear.
These are just a few of the factors creditors consider when deciding the value of your car that goes as collateral for a loan. However, different companies determine the amount of money they could lend on a car in different ways. Most often, they consider the trade in value of a car and decide to offer a percentage from that as the loan.
Choosing the right lender
It is normal for lenders to try to offer the least possible amount on a car because in case the one who obtains the loan defaults the loan, they need to spend some money to sell the car and realize the money they have lent. It is common for lenders to offer half the valued amount for your car but there are lenders who never offer anything more than 25% as well.
Therefore, finding a good lender who will offer a higher amount as your loan is useful without closing the deal with the first one you find. When you do so, you will be able to get a higher amount but remember always that it is a must for you to pay back the money on time and get your car’s title released back at the end.