Visit this page first for our blog and new information related to borrowing in Ontario and car title loans and more

car title loan estimate

Wondering About Yor Car Title Loan Estimate? Here’s How Your Car’s Value Is Determined In Canada

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, the loan amount 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.

Value Factors

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.

Trade-in Value

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 in 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?

Other Considerations

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.

Your Income

You will need proof of a verifiable monthly income stream. How much you qualify for will be determined by how much you make.

Your Location

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.

Comparing Loans

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.

Loan Amount

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.

Extra Payments

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, give us a call.
how title loans work

How Title Loans Work: Debunking Common Myths

Most of us have heard of title loans, but how many of us really understand them? With so many myths, misconceptions, and rumours circulating about them, it’s understandable why people would be wary and left with so many questions. Some unscrupulous lenders have painted the whole industry in a bad light. Let's look at how title loans work and debunk some of the common myths surrounding them.

How Title Loans Work

Basically, a title loan allows you to use your vehicle as collateral to secure a loan. In exchange for the loan amount, borrowers will register a lien against their vehicle until the loan is repaid.

Myth: You Can’t Get a Title Loan if You Have Bad Credit

A sudden financial emergency can happen at any time, to anyone. If we’re lucky, we have the funds to cover it. However, sometimes, we need quick access to money with a minimal amount of hoops to jump through. If you have existing bad credit or limited credit history, most forms of loans won’t be available to you. This is not the case with a title loan. Because you have secured the loan based on the equity in your vehicle, the lender accepts this as collateral and typically does not require a credit check. Most lenders will not look at your credit score.

Myth: Interest Rates Are Always High

Like the majority of financial products, interest rates will vary from product to product and company to company. While it is the case that a title loan generally has a higher rate of APR than mortgage equity or personal loans, there are still ways to keep the amount of interest you pay to a minimum. They are definitely preferable to the predatory payday lenders or unregulated loan sharks. The interest rate will depend on a lot of different variables such as the amount you borrow and the length of the repayment term. If you take out a title loan over a shorter period, you can decrease the APR significantly. A title loan should be a shorter term than a standard mortgage.

Myth: Every Lender Charges the Same Fees

Like most financial services, competition is high between businesses. This is as true for title loan companies as it is for banks and credit unions. They want your business, so take advantage of this by seeking out the best rates and lowest fees. Borrowers often assume that all lenders charge the same, so they fail to shop around for the best deals. You can also ask a lender if they are able to improve their rates and fees. Don’t be shy. It can’t hurt to try, and often they will be accommodating.

Myth: Getting a Title Loan Is Complicated

Getting a loan means filling in a ton of application forms, and providing documents and identification, right? No, in fact, a title loan is one of the fastest and simplest ways to get a loan. Typically, you can fill in the application online in minutes and the lender can then arrange to evaluate your vehicle. Once this is done, you can receive your loan. You can have your cash within days or even hours.

Myth: There Are Penalties for Early Repayment

Most of us want to pay off our debts as quickly as possible. But one of the greatest myths around title loans is that you are charged a large penalty for paying them off early. Lenders want you to pay off your loans and most of them charge only a small amount as a penalty for paying them off before the term of the loan.  In most cases, there will be no penalty charged at all if the loan is paid off after six months. Before you take out a title loan, check that your chosen lender will let you pay it back early should your financial situation improve suddenly. You could pay a little extra every month or (if you’ve been lucky enough to come into some money), the whole amount.

Myth: You Have to Hand Over Your Vehicle to the Loan Company

This particular myth does have some basis in truth.  Many years ago, the only companies that would let you use your car as collateral were pawn shops. This worked in exactly the same way as if you had pawned your jewelry or TV. You would hand over the item until you paid back the loan. This isn’t the case anymore. You need your car to get around and lenders understand this and aren’t interested in keeping your vehicle. Allowing the lender to register a lien against your vehicle is generally all that is required and you can keep using the car as you normally would. However, there are cases where a loan amount is very high, the scenario is tricky to the lender or the borrower does not have insurance that the lender will allow you to leave your car with them for them to lend to you, but these are exception to the rule.

Myth: You’ll Never Pay Your Loan Back

Since the last recession, confidence in financial services providers is at an all-time low. Most people believe that banks and loan companies are capitalizing on people’s financial problems without consequence. Undoubtedly, there are unscrupulous, predatory lenders out there. This is why its vital to do your research on a company before you sign on the (virtual) dotted line. Read customer reviews, clarify all the terms and conditions of the loan, and if you have a bad feeling about a particular lender, don’t take the risk.

Do Your Homework to Find the Best Deal for You

Now that we’ve debunked some of the most common misconceptions about the industry and you know how title loans work, you are in the best position to be able to find the right one for you. Do your research, make sure that you get the best APR and repayment terms that you can, shop around, and don’t’ forget to read the small print. If you're still looking for the right loan for you, call us today or give us a visit to see how we can help.
how do title loans work

How Do Title Loans Work? Everything You Need to Know About Car Title Loans

Are you in need of money fast? Emergencies happen and bills to need to be paid. Your typical Canadian creditor doesn’t care if your money is short this month. When money is short, then you can try getting a title loan to pay for things until you get back on your feet. You make ask yourself, how do title loans work? If you’re the average person, then you probably don't know. If you need cash fast, then it’s a viable option for you. We’ll discuss title loans and when they’re the best option for you. You’ll get the money you need, and you can pay the bills that the average Ontario resident is burdened with.

How Do Title Loans Work?

A title loan works by providing you cash in exchange for allowing the lender to put a lien on your car or truck. For most title loans, you must already own your car and have possession of the car title. You visit the title loan company's office and bring your car registration. They go over all the necessary information such as identity verification, residency documentation, etc., and you allow them to place a lien on your vehicle. There is also the option of getting a title loan by doing all of the paperwork online. In exchange, they give you the money you requested, and you pay it off with the agreed upon time frame. This is the simplest method of explaining how a title loan works, but we’ll break it down into more digestible bits.

Title Loans Are Short-Term Loans

While it may have taken you several years to originally pay off your car, a title loan does not go longer than a typical car loan. It’s not the same thing as a car loan. It’s designed to provide you with enough to take care of your emergency needs but also paid it back at a quicker rate. While car loans are paid back sometimes over five years, title loans are paid back within two years at the most and many times within a few months. This means that the monthly payments can be a little higher than regular car loans because you are paying the principal back faster. If you can’t pay it back within the agreed-upon time, then you can usually roll it over and adjust the payments to suit your needs and ability. It’s important that when you take out the title loan that you speak frankly to the title loan lender so that it is structured to best suit you. Some provinces may limit the number of times you can roll over a loan or if the practice is possible.

How Much Money Can I Get for My Car Title?

How much money you can get for your car title depends on how much it’s worth. If you bring in an older model car that’s not in the greatest shape, then you won’t be able to get a large amount, if any at all. Also, you’re not going to get the full value of the car. Generally, the best you’ll get is about 50-percent of the total worth. The loans aren’t supposed to be for large amounts of money because you need to pay it back quickly. The practice of providing only a fraction of total worth makes sure you don’t get over your head. The loan company’s main desire is to provide you with emergency money when you need it and for you to pay it back. The amount of money you get from a title loan company is usually between $1,000 to $7,500, depending on the total value of your car.

Benefits of Car Title Loans

Car title loans are for you to get the money you need when you need it. If you go for a more traditional bank loan, there’s all sort of red tape to go through. You’ll have to go through a credit check, and it can take days for you to find out if you qualify. You could end up wasting three days waiting for a loan that you don’t qualify for. For someone that needs the money to keep the electricity from being shut off, waiting three days isn’t an option. A title loan lets you get the money that day and in cash. You’ll have it in your hand and ready to use. The short-term nature also makes it perfect for immediate needs. You don’t want to get a loan from a bank that you’ll end up paying for many years. With a title loan, you can pay it back within a month if you wish and get the lien removed from your vehicle. You also know what you’re getting from the start. If you try for some of those online payday loans, you don’t really know who you’re dealing with. They're sending you money from who knows where and you can’t guarantee they’re on the up and up. You could pay off the online loan and then they try taking more money. With a title loan, you speak with a person face-to-face in Ontario. If you have any questions, you know how to contact them. Many online loans don’t have easily available contact information. You could end up losing far more than the amount you borrowed with online loans. A title loan is a way to go.

People Do It All the Time

Many title loan stores have been around for years in the same place or associated with companies that have been doing it for years. Thousands of people take out Canadian title loans every year for their emergency needs. It’s a common method for getting the money you need when you need it. Title loans are quick, easy and transparent with their practices. Many title loan providers have repeat customers who come to them whenever they need funds for an emergency.

Title Loans Are A Great Funding Source

How do title loans work? We hope this explained it in a way that was easy to understand. All that’s left if for you to visit a title loan provider and get the money you need. If you want to learn more about title loans, then please explore our site.
title loan

How to Qualify for a Car Title Loan

Even though Canadians are doing better than before and poverty rates in Canada are the lowest they've been in many years, many Canadians still struggle to afford unexpected expenses. When you've been hit with a sudden expense, you may not want to damage your credit further by putting more charges on your credit card. You may also be concerned that you won't be able to get approved for a loan because of your credit history. You know you'll have more money in the future, but you wish there was a way you could access it right now. If you're in a financial bind like this one, it can sometimes feel like you're out of options -- but you're not. Now is the right time to apply for a Title Loan. But what exactly is a car title loan, and where can you apply for one in the Ontario area? Keep on reading to find out.

The Basics of a Title Loan

Like many Canadians, your car may be one of your biggest investments. Perhaps you've even considered selling it in order to finance your bills or pay for an unexpected expense. But what if there was a way for you to keep your car and get approved for a loan at the same time? That's the premise of a title loan. Your car -- provided you own it in full -- can actually be used as collateral within a title loan. However, your lender doesn't take possession of your car or truck. Instead, you can keep on driving it while the lender simply registers a lien against it. Then, you'll receive up to $25,000. When the loan is paid in full the lender will remove the lien from your vehicle. The lien removal is done online so can be taken off immediately. Please be aware that, in most cases, if your car currently has a lien on it already, you will not be able to apply for the loan. However, there are a few exceptions to this rule, so it's best to contact your lender directly for an answer.

The Benefits of a Car Title Loan

So, what makes a title loan such a popular option for so many Canadians? As we mentioned earlier, it's an ideal option for those who have poor credit or even very little credit history at all. That's because car title loans don't require credit checks. Instead, you'll just need to prove to the lender that you have some form of current income -- so they know you'll be able to pay back the loan. Self employed and those on benefits also qualify. You can provide them with a paystub from your employer or give them bank statements to show you have money coming in from an investment on a regular schedule or benefits. Another reason why car title loans are a wonderful option? Because you're able to get the money incredibly quickly. The application process itself (more on that in a moment) usually takes under an half hour. Additionally, if your car or truck isn't currently in your name, you'll still be eligible for a loan as long as the person who the car is registered to co-signs your loan alongside you. You can even be approved for a title loan on a company car as long as you can provide proof of ownership of the company. The usual way to prove ownership of a company is to provide a copy of the articles of incorporation Even better? Those who are undischarged from bankruptcy or who are currently in a Consumers Proposal are often approved for the loan.

Car Title Loans: The Requirements and Application Process

As we mentioned earlier, applying for car title loans in Toronto, the GTA and Ontario is a surprisingly fast and easy process. In fact, you are often able to do it online through an eLoan. First, you'll need to provide a copy of your driver's license and two accepted forms of identification. Acceptable forms of ID include your birth certificate, permanent resident card, passport, SIN card, health card, or other government-issued IDs. You will also need to provide proof of ownership of your vehicle and proof of insurance. You may also need to provide a pay sub or bank statement. Don't worry if you are self employed, a pay stub will not be required in those cases. Additionally, you'll need to provide a utility bill as proof of current residence as well as a void cheque or a pre-authorized payment form. Perhaps the most important thing is to take several pictures of your vehicle -- eight in total. You'll need to show the vehicle from the front, left, right, back, (with visible license plate) odometer, front and back interiors, and the door VIN. Keep in mind that the car needs to be nine years old or newer and that it must have less than 200,000 KMs on it. However, there are sometimes exceptions to this rule so again, get in touch directly with a lender. In many cases, you'll be able to get approved for your loan on the same day you submitted your application -- sometimes in as little as half an hour.

Apply for a Car Title Loan with Us

Now that you know more about the ins and outs of applying for a title loan in Canada, we invite you to apply with us online for yours today. Why go with Fast Action Finance? Because we're not like other lenders -- our goal is to approve every loan we possibly can, and to work with you to build a stronger financial future. We've been in business since 1997, so you can be assured that we have the experience to help you get exactly what you need. Additionally, we offer other lending options aside from car title loans. We can also assist you with collateral loans, repair loans, and motorcycle storage loans. Don't let your financial situation ruin your peace of mind for a moment longer. Instead, begin your application with us for a title loan by clicking here.
applying for a car title loan

What to Bring When Applying for a Car Title Loan

Are you ready to apply for a car title loan? You need the right paperwork to get approved the same day. Don't worry. You don't need to run to the courthouse or the bank. Most of what you need is likely sitting in your filing cabinet already. Here's what you need to bring when applying for a car title loan.

Three Types of Documents You Need to Apply for a Car Title Loan

Car title loans don't require any underwriting or credit checks. Instead, you borrow based on the value of the vehicle and your ability to pay it back. To that end, you need to bring documents that fall under three categories:
  • Proof of identity
  • Proof of vehicle ownership
  • Proof of residence
As proof of identity, you need to bring your driver's license as well as two pieces of further identification, including:
  • SIN card
  • Passport
  • Permanent resident card
  • Birth certificate
  • Health card
  • Firearms acquisition card
  • Other government-issued ID
Your names should match on all IDs, and they should all be current. Proof of ID is essential because you can only borrow against a car you own. The lender needs to ensure that you are the full owner of the vehicle. As proof of vehicle ownership, you need to bring both your vehicle and your original ownership papers and proof of insurance. These papers guarantee that the car is in your name. If the car has a second current owner, then that person also needs to sign-off on the loan. You should also bring in further documentation demonstrating proof of address. A recent utility bill works. Be sure that it shows the address and a current date. Additionally, you need to bring your pay stub, if you get one. One or two current paystubs works just fine. Although you don't need good credit or a full-time job, the lender wants to be confident that you are comfortable paying back the balance of the loan over the loan period. If you are self employed and do not get regular paystubs, this is not a problem. In this case be prepared to show what you do for income.

What Other Items Might I Need?

You may also need to bring a spare key if you have one for the vehicle and a void cheque. If you don't have cheques anymore, then you will fill out a pre-authorized payment form. Pre-authorized payment forms are very easy to obtain. You can get them from any branch of your bank and in most cases get them online if you use online banking. Do you want to apply online? Instead of bringing the vehicle in physically, you can send eight high-quality pictures of the car, including:
  • Left and right side
  • Front and back (including license plate)
  • Odometer (not trip meter)
  • Front and back interior
  • Door VIN
These pictures can be taken with any smartphone and emailed. In addition, the other documentation needed and described above can also be sent in by taking clear pictures with your smartphone. Finally, if the vehicle isn't in your name only (meaning there is another name on the registration other than yours), then you need to provide written permission from the other owner. If they don't give you permission, then they need to sign on as a co-signer on the loan. To get permission from the other person, the lender will provide you guidance.

What if It's a Company Vehicle?

You can borrow on a company car, but only if you own the company. You cannot borrow on a company car provided to you by another employer. If you intend to use your company's vehicle as collateral, you need to provide extra documentation proving that you own the company. You will need to show your articles of incorporation. In this case, your name must be listed as a director on the articles of incorporation.

Do I Need a Credit Check?

Your credit doesn't matter. Although you provide your ID, you can still borrow whether your credit is ruined or a work in progress. You can even get a title loan if you are in an undischarged bankruptcy or a Consumers Proposal as long as your vehicle qualifies for the loan. If you apply during bankruptcy or Consumers Proposal, you may need to provide additional documents to prove that your vehicle qualifies.

What If I Have a Lien on the Vehicle?

If you have a lien on the title, then you typically do not qualify for a car title loan. In some cases the lender can pay off the current loan on the vehicle and provide you with extra funds. The lender can see if there is a lien in place when you submit your documents. In some cases, you can apply for another product like a repair loan. However, you need to discuss your case with the lender directly.

How Much Can I Borrow?

You can borrow up to 50 percent of your Black Book value. The maximum loan amount tends to sit at $25,000. The lender offers you the maximum amount you can borrow, but you are under no obligation to take the full amount. If you are borrowing to pay a bill, you may find it simpler to borrow only as much as you need the first time around. If you need to borrow for a repair on your vehicle, you can do this in a separate product. Additionally, you don't need to own the car to apply for it; leased and financed cars also qualify for repair loans. Also, if you own a movable piece of equipment that can be left with the lender you can borrow this way.

How Quickly Can I Receive My Loan?

As long as you bring all the necessary documents with you, you can receive the funds on the same day you apply. If you apply online, you will get a response during business hours. You will either hear from the lender by email or by phone, so double-check that all your details are correct before submitting your application.

Questions About Applying for a Car Title Loan?

Applying for a car title loan is easy. Unlike applying for traditional financing, you don't need to provide stacks of bank statements or paystubs. All you need is proof of ID, proof of ownership, and proof of residence. If you are facing exceptional circumstances and can't provide one of these documents, don't panic. You can talk to the lender in person to learn more about your next steps. Are you ready to apply for a car title loan? Click here to learn more about how to get such a loan from Fast Action Finance on the same day you apply.