Top Factors Used To Determine Your Car’s Value Before Availing A Car Title LoanFast Action Finance
A car title loan is one of the short-term loans you may avail of to repay an existing debt. You can also use the amount you get for whatever other purposes you need. Basically, this type of loan is a good way to get extra cash when you are in dire need of it and you have a bad credit rating. You simply have to surrender your vehicle’s title as collateral for the amount you will be borrowing.
One of the main concerns you will be having though when availing of car title loans boils down to the fact that you need to establish the value of your car before you even get the cash granted by the lender. As the car’s owner, it is your right to know how your car is valued at the moment to make sure you are being given the amount of cash according to its worth. In this regard, a series of factors need to be brought to mind when determining the value of your vehicle before availing of car title loans.
Your car’s model and make
One of the factors that the lender will consider in your car’s valuation at the time you borrowed money from them is your car’s model and make. The newer the model and make of your car, the higher the amount you will get for it. Of course, the safety and reliability of the vehicle will also be considered in its valuation in this regard. This is because this will help dictate the lender what is it they will get in case you default on your payment.
A combination of demand for your vehicle with that of its popularity
Some of you might say why lenders consider such factors in valuating your car? Well it is because they want to make that your car is in demand and is highly popular to a lot of people so that it will be easier for them to sell the car in case you default on your payment later on. The good thing is when considering such factors and they find out that your car is highly in demand and popular, you will get a better value, that is, a higher amount of cash for the car title loan. You are in a win-win situation still with these factors considered in determining your car’s value.
Mileage and age are also factors to take note of
These two factors are always considered crucial in determining a car’s value whether for loan or sale purposes. The older your car is the cheaper will be its value. It also follows that the more your car has been driven several miles, the lesser would be its value as well. Do not be surprised then if your car is valued at a lower price if you have driven it more or it has been with you for the longest time now. Understand that the lender would look at what will benefit him too if you default in terms of payment and they won’t be able to get that for an old or high-mileage car.
Your car’s present condition matters too
Now’s the time to rejoice if you have taken care of your vehicle no matter how long it has been with you. If you have maintained it properly, you can now benefit a lot from a car title loan. Yes, your car will come with a very special value because lenders will always see the benefit of reselling the car later on in case you default on your loan. What are things that can value it at a higher price at the moment? Well, it can be anything from new tires to interior upgrades and to other great features.
Your car’s history is part of the factors to consider
What does car history mean? Definitely it is not about the age of your car but rather would refer to any other incidents that your car has been involved in the past. Before giving it the right value for a car title loan, the lender will consider whether you have been involved in an accident and how many times the car had to experience those harsh conditions. The more the number of accidents you have encountered in the past, the lower the value of your car will be. Imagine the damages that come with those accidents and you will definitely understand why this is the case.
In all factors above, you will notice that lenders would often determine the value of the car title loan based on the potential to resell the vehicle later on in the event you default in terms of payment. They have to gain something from their transaction with you at the end of it all. You have to understand that.
If you intend to get the best value for your car through a car title loan, make sure you transact with a reputable service provider at all times. In this case, we encourage you to browse through are pages and learn more about this type of loan and how you will benefit from it. Contact us for any of your queries.