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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.
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.