You have probably seen or heard the countless number of advertisements on the television, radio, or even billboards regarding loans using your vehicle as collateral. These commercials trigger a tremendous amount of interest from consumers seeking a quick solution to obtain money.
For many individuals, this type of option is really the only way they are able to get the funds needed. Those that are truly uniformed about the details generally raise the question often on how do title loans work? There are loads of information out there at your fingertips but we’ll try to be brief and to the point.
In California, the minimum loan amount processed for a pink slip loan is $2500. The value, interest, and availability varies in different states and lending is limited to only 20 States.
The type of vehicle make and model plays an important factor along with the condition and current mileage. In general, vehicles made as far back as 2000 are accepted but you have a much better chance of getting approval with 2004’s or newer.
Salvage titles are also accepted.
Although it is not necessary to have your vehicle completely paid off, the amount still owed to the finance company will be important in deciding whether or not to continue with the process since it will be deducted from the cash received which could mean less funds in your pocket than your actual needs.
We can often look at income requirements as being somewhat of a catch 22 when seeking a loan. Reason being is that generally, especially in recent years, we need to borrow money because of the difficulty of finding work.
The good news is that the minimum income requirements are usually pretty low ($1200 per month) and can often get approval if receiving unemployment benefits.
All lenders just want to be sure that the installments can be afforded to be paid back so they will ask to provide employment information and gross earnings.
An auto title loan works the same way for insurance purposes as it does when you purchase a new vehicle off the lot. In the event of a total loss, the finance company wants to ensure that they will be able to recuperate the amount funded.
This is why they will request proof of comprehensive and collision coverage with a $500 deductible. Often times, individuals will remove these coverage’s once their original loan is paid for to save on their insurance premium.
Then, when inquiring to obtain cash with a car title loan they again need to shop around for auto insurance for their best options. However, if the car still has some good value on it, it usually is worth keeping that coverage.
First and foremost you will learn quickly whether or not your vehicle will qualify for a title loan by submitting some basic information that includes your name, cell, email, and vehicle details.
You will then be contacted directly by the lender to verify some more pieces of information. If approved they will inform you of some of the loan specifications and ask if you want to proceed.
Then a short application will need to be completed along with photos of the of the vehicle, copies of your license, registration or title, recent pay stub, and insurance.
Next, you will need to add the lenders name to the title with the DMV or a local DMV service provider.
Once all the requirements are fulfilled, you can expect to receive your cash quickly! The funding is totally dependent on how soon you can provide the required information.
Find out how Precision can help you get the cash you need quickly. Call us now at 909-752-0239 or complete the simple online form.