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Auto title loan

How to Value Your Car for a Title Loan

How to Value Your Car for a Title Loan

Everyone gets in a jam from time to time. Whether it's a traffic jam or a financial jam, we may feel stuck and impatient for answers. 

Financial jams are even harder to navigate at times. As we've been told since we were kids, "money doesn't grow on trees." So, when hard financial times hit, we may be at a loss on how to correct the situation. 

Getting an auto title loan is one solution you can explore. Auto title loans have no relationship to auto car loans. Although, an active auto loan may affect your ability to get approved for an auto title loan. 

Auto title loans can be secured online, at title lender's storefront, or sometimes at a bank or credit union. These loans take the value of your car and offer you a short-term loan. In return for the loan, the lender will place a lien against your vehicle as collateral.

It's worth noting that auto title loans aren't for everyone. They are typically short-term loans that require repayment over a shorter period than a mortgage of a bank’s term loan. They are generally used for emergency situations and not typically for entertainment or other frivolous purchases.

Want to learn what your car is worth for an auto title loan? Read on to find out.

Auto Title Loan: What's My Car's Value?

Auto title loans help people to get back on their feet when they need financial assistance. These loans, like any other loan, need to be taken seriously. While they are often easy to obtain, they must be paid back like other financial responsibilities.

Before you determine if an auto title loan is right for you, ask the title loan lender what repayment schedules are available and match the options to the one that best matches your needs and financial abilities. While most of us prefer to pay back a loan as soon as possible, if this is not what is best for you, then make sure that it is structured so the what you have promised the lender is what you can afford. Many title loan lenders will allow you to renew your loan, with or without getting new funds if the original payment structure is not working for you, but it is better to set it up correctly in the first place so you can keep your obligations for repayment from the beginning.

If you do want to get an auto title loan, then it's imperative that you find a quality lender. Find a lender with great customer service, that values transparency, and is willing to explain their processes in detail to you. 

Before you speak with any lender, you may be wondering exactly what your car or vehicle is worth. Explore the following ways to determine the value of your car for an auto title loan.

1. Canadian Black Book

Canadian Black Bookis a great tool for determining the value of your vehicle. To use it, you can first start by going to the Canadian Black Book website. 

From there, you can put in your car's make, model, and year. You can also add in any features which may increase or decrease the value of your car. 

Using Canadian Black Book gives you an objective estimate of what your car is worth. But, keep in mind that this doesn't guarantee how much a title loan company will give you for your vehicle. In fact, auto title loan companies tend to offer 25% to 50% of the car's value. 

Canadian Black Book will give a starting place to determine how much you can receive on a title loan. This will help you to negotiate with auto title lenders. It will also help you to choose the best auto title loan lender to meet your needs. 

2. Equity

The equity you have in your car can play a major role in how much the auto title loan company considers it be worth. Many companies require that you own your car outright. However, some companies may take into account the value of the car and the equity you currently have in the vehicle. 

The more equity you have, the more money you can receive from an auto title loan. However, if you currently do not own your car outright, you should thoroughly consider whether or not an auto title loan is a good idea. If you get an auto title loan while paying off an auto loan, you will have two repayment schedules to manage.

This could lead to a mound of debt that will require servicing that could cause you to neglect other bills as they come due.

3. Government Restrictions

Each province and country have rules and regulations that affect auto title loans. Canadian provinces do not set any minimum and maximum amounts that a potential customer can borrow on auto title loans. However, you can expect the auto title lender to lend based on their determination of your vehicle’s value.

Research your vehicle’s value to get a good idea of what the auto title lender will lend based on your vehicle’s value.

4. Appraisal Procedures

Each auto title loan lender has different appraisal procedures. These procedures may value your vehicle at more or less of what Canadian Black Book values it at.

Furthermore, some auto title loan companies will only offer you a loan based on the trade-in value. The trade-in value of your vehicle is the amount of money a dealership would give you if you traded in your car for a new one. Typically, the trade-in value is less than the Canadian Black Book value.

Speak with an auto title loan company directly to learn more about their appraisal procedures and policies. 

Auto Title Loan: Is it Right for You?

An auto title loan needs to be thought through before signing the dotted line. If you default on the loan the lender does not necessarily immediately seize your vehicle for non-payment as they are in the business of making money on interest, not grabbing a vehicle and selling them. However, bear in mind that because your vehicle is being used collateral the lender could take it to pay off the loan should you completely refuse to make any payments nor return their calls.

We all need our vehicles to complete everyday tasks. We also need them to make money at a job and take care of our children. This is why it's very important to think this decision through and to not make it impulsively. 

However, in life, the unexpected can easily occur. Last minute, we may receive a repair or utility bill we can't pay. In these instances, auto title loans can help. 

If you do feel confident in your ability to repay an auto title loan, then it can relieve your financial stress immensely. It can help you to get back on your feet when the unexpected occurs. Many title loan lenders do not require you to have an income, but rather just equity in your vehicle. This means that you will be able to qualify for a title loan even if you are not currently working. If you are not working the amount that you receive will most probably be less than if you are working, but you will still qualify for a loan of some amount if there is ample equity in the vehicle. 

Interested in getting an auto title loan online?Check out our eLoan processand apply today. 

vehicle title loans

Your Comprehensive Guide to Obtaining Vehicle Title Loans

Your Comprehensive Guide to Obtaining Vehicle Title Loans

Canadian's debt to income ratio is getting worse and increased to 14.9 percent by the end of 2018. In fact, the rate of growth for debt is outpacing income growth. If you are one the many Canadians facing high debt, you may feel overwhelmed by high-interest rates. 

There is an answer to your problem. Get out of your unfavourable financing agreement by paying them off. How do you ask? By using your car. 

Vehicle title loans give people an injection of cash to help them pay off high-interest debt, medical bills, or any other sudden expense. 

What Is an Auto Title Loan? 

A car title loan is a short-term loan that you secure with your car's title. Because you are using your car's title as collateral, other factors tend to be less important. So, if your credit score isn't great or your income isn't high, that won't bar you from getting approval. 

Most lenders will give you 25% to 50% of the value of your car. The one major catch is that you need to own your car outright. That means there are no other loans or claims to the car's title. 

When Should You Get One? 

If you own your car, have bad credit, and need cash quickly, then a title loan may be the right choice for you. Just be sure you can pay the loan off within the lender's proposed time frame.

What Happens If You Fail to Pay the Loan Back? 

You are using your car's title to secure the loan with the lender. That means if you fail to pay, the lender has the right to seize your vehicle if you avoid their calls and do not negotiate a revised payment plan. In the rare cases where the lender is forced to seize a vehicle, they will sell the car and use the proceeds to pay off the loan. Typically, if the vehicle is sold for more than the amount owed, you will receive the difference. 

Another option is to roll your first loan into a new loan. This will give you more time to pay the loan back. It will also mean you have more money to pay back too. 

How Do You Get One? 

When applying for a car title loan with Fast Action Finance, there is no need to come into one of our offices. You can apply for your loan electronically. There is also no need to check your credit scoreeither. 

All you need to do is send us some documents, we'll take ten minutes to review them, and that's it! If you are approved, we will email you the loan documents for you to sign. 

Once we receive the signed documents back, we will email or deposit your loan money. The whole process can be done quite quickly, which is perfect if you are facing an emergency. 

Take Pictures 

The first thing you will need to do is take pictures of your vehicle. We want to see the condition that it is in. You will need a total of eight images to show us your car adequately. 

  • The left side 
  • The right side 
  • The front 
  • The back (be sure the license plate is present in the picture) 
  • The odometer showing total KM
  • The front interior 
  • The back interior 
  • The door VIN 

Check your photos after you've taken them and before you send them. Make sure that you are backed away enough to show the entire vehicle in the picture. 

You also want to make sure that your pictures are well lit and not blurry. When taking a picture of your odometer, make sure it is on the total KMs driven and not a trip mile counter (odometer).

Another picture to be careful with is the VIN picture. There is a lot of information on this sticker, and it's relatively small. So make sure this picture is well lit and not blurry. This can be found on the dashboard on the driver’s side or on the driver’s door post.

Gather Your Documents 

You will need to make a copy of the front and back of your driver's license. We also need proof of ownership, both front, and back. 

Provide proof of insurance on the vehicle. This is to ensure the car, and the loan is protected in the vent of an accident. 

If you are currently employed then provide a copy of your pay stub. Don't worry if you aren't employed; you can skip this step. 

Include a utility bill from your address with the current date on it. The utility bill doesn't need to be in your name; the correct address is what is important. 

You need to provide a void cheque or pre-authorized payment form. This way we can process your loan disbursement as quickly as possible upon approval and document signing. 

Finally, you need to provide two from the following list: 

  • Birth certificate 
  • Passport
  • SIN Card 
  • Health card 
  • Citizenship card 
  • Fire arms acquisition card 
  • Permanent resident card 
  • Any other acceptable government-issued ID 

Once you have gathered all of your documents, email them to us, and we can get started reviewing your application. 

Consider Vehicle Title Loans

If you are facing an emergency, or are looking to pay down some debt, then vehicle title loans may be able to help you. This is a viable option for someone who doesn't have good credit or can't show proof of employment. 

The application process is quick and easy, just make sure you gather all of the necessary documents so that your application is complete and can be reviewed. There is no need for you to come into the office in person, which saves you even more time. 

Use your car today to secure a loan with our quick and easy process. 

car title loan

Is it Difficult to Pay Off or Get Out of a Car Title Loan?

Is it Difficult to Pay Off or Get Out of a Car Title Loan?

A car title loan is one of the best ways to secure instant cash when you need it. A lot of people prefer taking auto title loans because:

  • They are quick to process
  • They are available for people with low credit scores
  • No bank statements are required

However, these loans put an encumbrance on your vehicle, and as a result, some people steer away from them. In the worst case scenario, the lender may end up seizing your vehicle if you do not make any payments.

Due to the expensive nature of these types of loans, some borrowers are unable to repay. If you are going to take up title loan with your vehicle, then you have already considered the possibility of losing your vehicle.

Nonetheless, this doesn’t have to be the case.

If you are wondering how to get out of a title car loan with ease; you have come to the right place. We have compiled five ways you can get out of an auto title loan.

If you’re interested in finding out how you can pull this off; keep reading.

1. Selling Your Vehicle

Ideally, this is not the best way to repay car title loans especially if your title is not clean. A clean car title is a title that is not indebted anywhere for instance with your lender.

Nonetheless, it is still a viable option to get out of the auto title loan.

Selling your vehicle could get complicated because your ownership documents are still with the lender. You could ask the lender to sell the car, but they will only sell it at a price that covers the loan, but the vehicle could be worth more.

If you still need a vehicle, you may have to downgrade to a less expensive car. Hence, when you sell your vehicle, you can pay off your lender and still have some money left to buy a less expensive vehicle.

This option can save you thousands of dollars in interest and fees for the title loan.

2. Refinancing or Consolidating the Loan

In financial terms, loan consolidation involves taking up a different loan with a different lender, to repay your current loan.

Now, this option doesn’t generally solve your debt problem, but it buys you more time to settle a new debt and still keep your vehicle. However, it is essential to note that this option entails you take a much larger loan to cover the original amount borrowed and interest accumulated by the auto title loan.

But, when you refinance a loan, you get an extended repayment period, and you might even get better interest rates.

If you have low credit, consolidation might be a problem for you because you have to borrow from banks, credit unions, etc. However, you can have a trusted friend or family member to co-sign the loan with you.

3. Prioritize Your Monthly Payments

A lot of people assume fast title loans require quick repayment or the loan is in default. Well, this is not true.

The reason you need to repay your auto title loan as soon as possible is to avoid paying more money in interest rates. Typically, every month you carry the loan; the interest keeps accumulating.

When you take the loan, always have a repayment plan in mind. This allows you to determine how long it should take you to repay the loan. With this in mind, it is easy to prioritize how much of your income goes towards repaying the loan.

If you stick to your repayment plan with utmost discipline, then you will get out of the title loan much easier.

Unfortunately, you may not be able to come up with the funds every month. Considering you borrowed the money because you were short, you may have to get creative. A good idea would be to lend out your vehicle to family and friends when you are not using it. This should help towards accumulating the repayment funds.

4. Negotiate With Your Lender

Lenders are business people, and as long as the deal makes sense, they are willing to push the loan for a given amount of time.

Hence, if you realize you might not be able to repay the loan within the agreed upon timeline, you ought to contact the lender beforehand. Inform them you have run into some trouble and you might not be able to meet the repayment deadline. Ask them if they can provide an alternative repayment plan or push the deadline.

A sensible lender will understand your situation and depending on their business’s position; they will avail one or two options of how to proceed. In most cases, they are willing to push the deadline by a week or two. Sometimes, they will ask you if you are okay with a higher interest rate to cover for the loan extension.

Understand that not all lenders are the same. To avoid any inconveniences, initiate negotiation as early as possible. This will give you room for further talks in case your finances still don’t work out. Don’t wait until it is a few days to the deadline to start negotiations.

5. Filing for Bankruptcy

Filling for bankruptcy doesn’t necessarily provide relief of the loan, but at the very most, it could buy you some time to settle the car title loan. Nonetheless, your vehicle will still get regarded as collateral.

The viability of this option is not set in stone, and hence, you will need to get in touch with a lawyer and assess your bankruptcy options.

Finally, on Getting Out of Your Car Title Loan With Ease

A car title loan is a viable solution for accessing quick money when you are in a financial fix. However, when taking up the loan, you should consider:

  • Who are provides the best car title loans near me?
  • How much do you need?
  • How fast can you comfortably repay the auto car loan?
  • What is the repayment plan and do I have a plan B?

The easiest way to keep your vehicle with a title loan is to borrow the least amount of money possible and maintain your monthly payments.

Are you short on cash will low credit and looking for a quick loan? Get in touch with us for the most affordable title loan. We provide a variety of title loans with flexible repayment terms.

The Loan Industry in Canada

The loan industry in Canada is made up of several different segments:

National and International Lending Institutions The banks are national and international lending institutions. In addition, there are smaller lending institutions such as credit unions and savings & loans entities that are provincial or regional. They are all heavily regulated by the Banking Act and/or other legislation that makes them very non-entrepreneurial in their business dealings. These banks, credit unions and savings & loans institutions are run by a board of directors. They follow strict lending criteria and there is little room for flexibility in their lending practices. These institutions still grant many loans, but only to those with good credit records. Their threshold of loan minimums is constantly rising, whereby a consumer looking for a small loan of $5,000 is directed to use their credit card. Banks no longer have the will to administer small loans. Local Lending Companies Then there are the local lending companies that are sometimes a stand alone operation, have a few locations or are part of a franchised system. Depending on the level of ownership, this class of loan company ranges from entrepreneurial to very restrictive in lending policies. Payday Loan Companies Finally there are the payday loan companies that operate under the Payday Loans Act. The typical payday loan customer is looking for a lending institute’s ability in granting them fast access to loans and finance. The payday lenders too have strict rules to follow and they have little room to wander from their self-imposed business model. The Best Choice For Many Customers The lending companies that take an entrepreneurial attitude to assist customers with their needs are the local lenders. In these companies the owner is usually active in the day to day operations of the business and many times can be swayed by a borrower’s needs and will work with them to find a solution and get them the money they need. Fast Action Finance is The Local Lender For You Fast Action Finance is a local lender that will lend up to $5,000 using a paid off 2010 or newer vehicle. This is called a Title Loan. For these Title Loans we do not hold the car, have it transferred to our name or have the customer sign the ownership over to us. The customer keeps driving the car as usual. For higher loan amounts we hold collateral such as vehicles, trucks, motorcycles, classic cars, snowmobiles, watercraft, machinery, etc. at our secure location to collateralize the loan. These are known by several names: Collateral Loans, Secured Loans, Hard Collateral Loans, Storage Loans, or Emergency Loans.

How To Use Your Motorcycle To Secure A Loan

For some people, there comes a time when they find themselves in a tight financial situation but are unable to borrow from traditional lenders, such as the bank. This may be for a variety of reasons such as a poor credit rating or unemployment. Many individuals would then turn to secured loans, such as title loans, where credit and employment status is not considered. However, not everyone has a debt-free vehicle. One needs to have a debt-free vehicle with full-coverage insurance in order to qualify for a title loan. Another reason why title loans may not be a viable option is because of the value of the vehicle. There simply may not be enough value in the vehicle in order to receive a substantial amount of funds from the loan. How does one go about receiving well-needed funds with these factors at play? Motorcycle Storage Loan A lesser known way of securing a loan is with a motorcycle storage loan. This type of loan involves the lender holding onto the motorcycle for the duration of the loan. The lender will have a secure facility that the collateral will be held in, that is locked and alarmed at all times. In addition to this, many lenders will also allow an individual to check-up on their motorcycle for peace of mind and to ensure that it is safe. Once the loan has been paid-off, one can pick up their motorcycle at any time they please. One of the positive aspects of motorcycle storage loans is that many individuals do not use their motorcycle year-round anyways. That means that it can be used to secure a loan during the cold winter months, then the loan can be paid-off as the weather warms up and you will be free to use your motorcycle as you wish. How Much Money Will I Receive? The amount of funds received from the loan depends on how much equity is in the motorcycle. The higher the equity, the more funds one will be eligible to receive as a result of the motorcycle storage loan. For example, a motorcycle worth $6,000 will be eligible to receive more funds than a motorcycle worth$4,000. Since the motorcycle will be held onto for the duration of the loan, almost the full value of the motorcycle can be loaned out. This is because there is less risk if the motorcycle is in the lender's possession as opposed to on the road. Other Options If you find yourself still needing more funds after considering both motorcycle storage loans and title loans, then you may have other collateral that can be utilized to receive additional funds. Collateral such as watercraft, snowmobiles, machinery, and equipment can be pledged as collateral for a loan. However, this collateral will need to be stored by the lender for the duration of the loan. Snowmobiles can be a perfect asset to pledge as collateral for a loan. This is because they can only be used for a few months each year. One can take out a secured loan with their snowmobile as collateral in April, and pay the loan off by November. This way, you still have from November until March to enjoy your snowmobile. Additionally, some professions find themselves needing certain equipment during certain seasons, but have no use for them in other seasons. Examples of this include snowblowers and tractors. Why have equipment sitting idle when you can use it as collateral to receive funds? These funds can then be reinvested in order to make additional revenue in the future. You Always Have Options All in all, motorcycle storage loans can be a viable option for those who are lacking other forms of collateral to obtain a loan, but do not meet the strict requirements of the bank. However, motorcycle storage loans are also useful to receive additional funds on top of another loan, such as a title loan or a unsecured loan. If you do not have a motorcyle then take a hard look at the assets that you do own. Are any of them of a substantial value? Can you go without them for a few months, until the loan is paid-off? If the answer is yes, then you may want to think about pledging these assets as a security for a loan.