What Is The Likelihood Of Getting A Title Loan With Your Car Still On Payment?Fast Action Finance SEO
When faced with a serious problem, you are likely to take desperate measures. In particular, money-related problems tend to leave most people frustrated. Luckily, you have auto titleĀ loans at your disposal. If you need instant cash, all you need to do is simply apply for it. The lender will require that a lien is placed on your car in order to secure their interest. After this, you will get the amount of money that you need to deal with whatever problem that is occurring. In light of that, most people wonder if they can be eligible for a title loan while their car is still on payment. As you read on, you will find how things actually work in this kind of case.
Eligibility for a title loan
Can you get a title loan while still financing your automobile? The answer to that question is yes. All lenders practically offer the same service but their packages vary. While one lender may not allow you to get a title loan with your car still under payment, others will gladly help you out. It is all dependent on the circumstances.
On one hand, a lender may make it possible for you to qualify for a loan on an automobile that has been obtained through traditional financing. On the other hand, the lender may choose to work with an option referred to as a buyout. Here, you actually have a title loan with a different lender.
Traditional finance option
A lender may approve your request for a title loan if you have a few leftover payments for a loan. The loan payments on your car can actually be from a dealership, traditional bank, finance companies, credit unions and so forth. How does it work? Well, not so many lenders will give you a title loan while you are still financing your car. For the ones that do, the lenders usually look for effective ways to incorporate the remaining payment of your loan (on the car) into the auto title loan.
The buyout option
This is actually a case in which you have already taken an auto title loan from a different lender and you are looking for another loan. It is more or less like refinancing. Typically, a lender will refinance your previous auto title loan by paying off the current lender and drafting new terms for the loan you are about to acquire. If this happens to be the case, a lender may even give you more money depending on what you need. What is the catch? Well, a lender may first ascertain that you are up to date with your current lender as far as payments are concerned. A lender may also call your current lender on the matter and even request for a per diem, which is basically a daily expense allowance required by your current lender.
A new lender will call your current lender to confirm the buyout amount. Most notably, your automobile is not going to qualify for double what you owe your current lender since you are working with a buyout option. It only needs to qualify for the amount of money that you owe the current lender. The amount that can be loaned out is typically half the value of the vehicle.
Double qualification method
In this case, what you owe a lender really matters. This is because you have to qualify first for the double amount that you owe a different lender to actually get online title loans. Technically, if you have a remaining debt of about $4000, then you will have to qualify for $8000 when applying for auto title loans. More often than not, you are required to take the whole amount when you qualify for double the amount you still owe. For this to work, your car should definitely have good equity. In addition, you should have paid off a significant percentage of the loan. Offering proof that you are capable of paying the new loan seals the deal. Not many lenders deal with this option and perfer the buyout option.