Title loans are a powerful financial tool that can help you get out of a short term financial bind. Anyone can have short term problem that comes up without any warning. It can be a breakdown, an unusually high bill, back to school expenses, or even a medical issue. A title loan can provide the cash you need to get through the emergency. Getting a title loans for older cars can sometimes be a challenge, but with the right kind of knowledge, you can get the loan proceeds that you need.
Title Loans Primer
Title loans are a great emergency or short term financial tool. They allow you to convert the value of your vehicle into a short term loan. Title loans are not based on your credit. They are just based on your vehicle’s value and your ability to repay the loan. What this means is that you can even get a title loan if you have bad credit. Title loans have longer terms than payday loans so that you have time to pay them back. Some title loans can have repayment terms as long as 6 months.
Because title loans are based on the value of the vehicle, your equity in your car represents the value of the loan you could possibly get. The higher the value of your car, the higher the loan you could be eligible for. In this respect, they work like any other car financing. Title loans are just more lenient in their credit requirements.
Title loans don’t involve a complicated or time-consuming process. You can get an online car title loan very easily by filling out a simple free quote form and providing information to a representative who will follow up on your application. You’ll need to have a clear title free of liens to get approved, but in some cases, you can even get a loan with a lien. A representative can go over all of the loan particulars with you and you could be funded in as quickly as 24 hours. It's easy to see why title loans are a good idea for those facing a temporary financial setback.
Title Loans and Older Vehicles
Traditional lenders tend to view older vehicles negatively. They can be very strict on which vehicles they will finance. They focus primarily on vehicles less than 10 years old and with fewer than 100,000 miles. In some cases, they will deviate from these standards, but they look very closely at the value of these older vehicles. These standards apply for vehicle refinancing as well. It certainly makes it more difficult to capture value from your vehicle if it is older or has higher mileage.
Some title loan lenders keep to these strict standards on the age of your vehicle and mileage. They choose not to give title loans for older vehicles or vehicles with too many miles. Fortunately, there are title loan lenders that will provide title loans for older cars.
Since title loans are based on the value of your vehicle, it’s not surprising that title loans for older vehicles usually have lower loan proceeds. These lower loan proceeds are because the value of the car is less. Older vehicles also generally have higher mileage and this too plays a part in the amount loaned. It’s important to keep in mind that while the value of the car may be less, it’s possible to get a title loan on an older vehicle.
Lender Flexibility with Older Vehicles
Title loan lenders have a lot of flexibility in how they can maximize the value of your title loan. They are interested in giving you the highest loan amount possible, but they have to work within the confines of your vehicle’s value. It can be challenging with an older vehicle. Fortunately, they do have tools to help them find the real value of your vehicle and they might need to use them more often with older vehicles.
One thing that can be done to properly maximize the value of your vehicle is to find the value of the added accessories to your vehicle. Generally, this isn’t the aftermarket accessories but rather factory installed options. It’s a good idea to inventory all that you can before talking with a title loan agent. Air conditioning, factory sound systems, factory window tinting, and factory wheels are all things that can add value to your car. Remember, anything that adds value to your car can potentially get you higher loan proceeds.
The primary requirement to get a title loan is a clear title. A clear title is a title without any liens. There are two types of clear title. A clean title is a clear title that has no branding on it. This means that it hasn’t been salvaged. Some title loan lenders restrict themselves to handling just clean titles. Getting a title loan with a salvaged car can represent a special challenge.
Salvage titles are titles on vehicles that have been previously totaled and have been repaired. Since they were salvaged, they will always carry that title brand. An older salvage vehicle can sometimes be difficult to find a title loan for. Fortunately, a representative can go over everything and find ways to maximize your title loan.
Steps to Getting An Older Vehicle Title Loan
1. Get Your Vehicle Information
You’ll want to gather together your vehicle information before applying for a title loan. As mentioned earlier, you’ll want to do an inventory of your car’s options. You’ll want to locate your title because it has pertinent information like the VIN number.
2. Get Your Personal Information
While credit is not important when getting an older vehicle title loan, it’s important to show that you have the ability to pay the loan off. You’ll want to collect your employment information and a list of personal references so that you can quickly provide them to the loan agent. It’s good if you have a couple of paycheck stubs on hand. If you want to have the loan funded into your bank account, it’s important that you have your bank information such as routing number and account number.
3. Find a Title Loan Lender
Since not every lender will handle title loans for older cars, it can be time-consuming to make multiple applications trying to find a lender that will lend on an older car. It makes sense to find an online title loan lender so that you don't have to go to multiple title loan locations trying to get a loan. If you fill out the free quote form on this site, you can quickly get a quote even if your vehicle is older. It doesn’t take a lot of time and you can get the maximum amount possible.
4. Search the Terms
Make sure you understand the terms of your title loan. Be sure to ask the representative about what you need to do to fulfill the loan terms. Make sure you are aware of any fees and what happens if you need to pay a payment late. It’s important that you be aware of all the terms so that you can maximize the value you get.
If you are in a financial bind and have an older vehicle, you can get a title loan. Getting title loans for older cars might require a bit more work, but you can get the temporary financial funding that you need to take care of your emergency or short term needs.