While it is popular to borrow against the value of your home, you may not be as familiar with car title loans. A car title loan allows a borrower to use a vehicle to secure a loan. Anyone who owns a car or truck that is fully paid for and is free of any liens on the title is eligible. An auto title loan may not be as well-known as a more conventional loan, but it is a quick and easy way to secure cash.
The first step is to apply. You can visit the office of a title loan company or, thanks to modern technology, you can find a title loan company like Embassy Loans of Florida online. Most title loan companies will allow you to fill out an application online. Once the application is complete, the processing begins.
You will be asked to provide various forms of documentation including a driver’s license, proof of identity, proof of insurance, and more. You must have the title to the vehicle and it cannot have any liens. Once everything is verified, the vehicle can then be assessed for its value.
Most title loan companies will only complete a title loan on vehicles that are less than 10 years old. At Embassy Loans, customers take their vehicle to one of the company’s 21 different inspection stations around the state to have it appraised. Title loan companies will only lend you a percentage of the full value of the vehicle. If your car is valued at $9,000, you may only be able to borrow $4,500, for example.
Once the vehicle has been appraised, the loan can be finalized. The loan documents are produced and all that is left is to sign them and receive your money. Most title loan companies will now even deposit your loan proceeds into your bank account.
One of the best features of car title loans is how quickly they can be completed. Most title loans are completed and borrowers receive their money within an hour of filling out an application. Many are even done within just a few hours. Borrowers can still use the car while the loan is in process and while it is being repaid. Anyone who defaults on a car title loan is subject to repossession. The title loan company can take possession of the vehicle and sell it to recover their losses.