Can I Get A Title Loan With An Older Vehicle?
To get a title loan on an older car, you first need to understand if the loan makes sense based on how much money you can expect. It’s highly likely you’ll be approved for a loan on an older classic car if it holds enough value. As we know, the driving factor to your ability to get a title loan on an older car is the value of the car. Some cars hold their value better than others. In fact, many older classic cars actually go up in value. This makes them great title loan candidates. To get a title loan on an older car is to appraise the vehicle and get its value.
See If Your Older Car Qualifies For A Title Loan
In many places, the value of a car is determined by what you could sell it for on the open market, but there are a large number of lenders who make their own value determinations. The trade-in value (sometimes equal to the typical book value) is the most readily used, but often a good estimate for investment values can be made by a qualified appraiser. Typically a lender will lend no more than 60% of the value of a car If you do not know what the value of an older car may be, then an appraiser should be able to evaluate the vehicle for free. Most online title loan lenders are familiar with the make and model of the car because this is often a good commercial lure – in the case of private party purchase – only dealers can offer them. As always, a vehicle is only worth what someone wants to pay for it. So knowing what it is worth is the initial determinant of the trade value. The value given to the auto by the mechanic is a fundamental component of the loan, so it makes sense to also know this value to get the most out of the title loan.
Title Lender Restrictions on Vehicle Year and Models
If you’re going to get an auto title loan on an older car you will have to calculate the multiple of the car’s value by the current cost of the vehicle. For instance, if you are going to borrow $500 from the lender for 4 months, you will have to pay $75 per month for 4 months to get the full $500 paid back. If you’ve calculated that the average sale price of a late-model car is $150, then the value of that vehicle will be $225. The lender has determined that, with the subtracting of the $75 for each payment, in order to pay down this car, you will be able to pay an amount at least that of the value that you have determined. If there is a $100 belief within the market that the car is worth $125 per month, then for the first four months (by the end of the loan) you would only need to pay $125 per month for the loan.
It’s simpler to figure the value of an auto title loan for older cars using an online tool like Kelley Blue Book, Haggerty Valuation, or any other online resource that provides this kind of pricing to determine a trade value. Most lenders use this calculation as the base, but there are many other value systems being used in determining how much a car is worth. This is especially true for older cars that can fluctuate based on vehicle conditions that would otherwise be minor. The key to being a successful title loan borrower is to provide valuable information upon application.
What’s needed to apply for a title loan on a classic car
If your online title loan request includes recent information (a copy of your title, or an electronic bill of sale) that indicates a relatively high value, know this valuable information. Lenders have a Generally Non-Liability Agreement with the owner of the vehicle, and in such agreement equity of property is figured. However, in a case that they might settle for less. This account should state that the lienholder has the right to compel the sale for a set amount of money, which is a fraction of the value of a vehicle.
Find a Lender that offers cash for older cards with low value
We all agree that a classic car or even older car with low mileages can carry significant value. But what about an older car that has high miles and little to no collectible value? In situations like this, you need to find the best title loan offers. Start by working with a lender and possibly come to agree on an amount that works for both parties. The balance of the vehicle can be sold separately (as long as the title has not become ready for sale), or it can be turned over to the creditor in installments. It’s a good idea to rely on an attorney or title broker who specializes in title loans, in determining the value of an auto title Loans for older cars can be worthwhile and should offer a good rate. Not only will you limit the value of your automobile, but you will also help make better use of your money. After all, title loans are one of the fastest, and easiest ways to make money available. It’s often a good point for entrepreneurs who are eager to improve their careers, or who have a particular path they are charting.
Jessica has blogged about the title loan industry since 2012. Before that she managed a team of customer service representatives for one of the largest payday loan companies in the US. Since coming to Premier Title Loans she’s overseen our sales and marketing department and looks forward to educating consumers on their different financing options. Jessica is always open to feedback and questions that relate to short term loans!