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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 LoanBefore 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 ResearchAs 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 EstimateThe 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.
Value FactorsEach 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 EquityTo 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.
Trade-in ValueYour 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 CarEvery 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?