One of the more frustrating things facing individuals and business owners are taxes. Each year, individuals and businesses must file a tax return. When completed, it is possible that you may owe the government a sizable chunk of money. If you are not in a position to pay, there are some alternatives. A car title loan is one such option.
What Is A Car Title Loan?
A car title loan is a secured loan that is taken out against the title to a vehicle that the borrower owns. Typically, lenders will offer car title loans to those who own their vehicle outright. In some cases, borrowers may still have a balance remaining on a current car loan. Embassy Loans is one of Florida’s leading consumer finance companies and has helped thousands of customers obtain loans for a variety of issues.
What Is The First Step?
The first step in obtaining a car title loan is filling out an application. Most title loan companies, Embassy Loans included, allow borrowers to complete their application online. Applications generally take five minutes or less. When they are complete, borrowers are asked for a few types of documentation. Normally, they will have to prove their identity, where they live, and prove that they own the vehicle. Once everything is complete, the lender will examine the vehicle itself.
How Much Can Be Borrowed?
The answer to that question depends entirely upon the value of the vehicle. The lender will appraise each vehicle using the same tools that a dealer or any private individual would – blue book value. Lenders will typically only allow 30 to 50 percent of the total value to be borrowed. If a vehicle is deemed worth $20,000, then the highest amount that may be borrowed is normally $10,000. Lenders do this as a precaution in case a loan goes into default. It is then easier to sell the vehicle and recover most of the lender’s losses.
How Long Does It Take?
One of the big advantages of taking out a car title loan is that it can be processed quickly, and a borrower can have his or her hands on their money in a matter of days. At Embassy Loans, a car title loan is processed in an hour. Since the loan is not dependent on credit, many lenders do not even run a credit history, and none spend the amount of time that banks do when determining approval for unsecured loans. With a large amount of paperwork omitted, title loan companies can process their loans quickly. Once the funds are secured, a borrower can use them to pay any taxes owed to the government.