A car title loan is an easy way to access cash very quickly. If you are the owner of a vehicle that is completely paid off and the title is clear, you are eligible to borrow against the value of your car or truck. How much you can borrow will depend upon the equity that you have in the vehicle. There are ways to estimate the amount of equity before you actually begin the process of applying for a car title loan. A number of factors will go into determining that amount.
The Make And Model Of Your Car
The instant you drive your car off the lot it begins to lose value. Some makes and models will hold on to some of that value a little better than others. Certain cars and trucks are more popular than others. A vehicle’s brand, its reliability, and its safety rating will also play a role in how well it maintains its value as compared to other vehicles.
Condition Of The Vehicle
If your vehicle has been well maintained, it will most likely be worth more should you go to sell it. Regular oil changes, rotation of tires, and replacement of fluids can help a car on the road for a long time. Maintaining its appearance is also important as those that look better than others are normally worth more.
Vehicle History And Mileage
The more miles that are on the car or truck, the more its value will decrease. That combined with the vehicle’s history will have a lot to deal with the value of it. Any vehicle that has been in an accident and is damaged will be worth less. Cars or trucks that have rust are also are less valuable.
Your Location
Where you are located may also play a role in how much your vehicle is worth. A sharp-looking convertible is probably worth more in sunny California or Florida. Likewise, a 4×4 truck that is outfitted for snowy weather is more desirable in North Dakota or Michigan than it is in Texas.
Accessing Your Equity
A title loan company like Embassy Loans of Florida will use these factors to determine a value for your vehicle. Most title loan companies will only offer about 50 percent of the vehicle’s equity in cash. If the borrower fails to repay the loan, the title loan company must make sure that it can sell the vehicle and recover its losses.