Car title loans were created for those who have a need for quick cash to pay off bills, handle an emergency, and manage debt. An auto title loan (also known as a “quick car loan”) is very easy to get. Unfortunately, fast and easy may not be a good idea. These loans can be costly and you could lose your car.
Here are three things that you need to know before you get a decent title loan for your car.
1) Miami Auto title loans are available only to people who have equity in their vehicle.
An auto-title loan is basically a small, secured loan that uses your vehicle as collateral. Car title loans usually range between $ 100 up to $ 5,500. This is often 25 to 50% of a car’s total value. The loan term may be short: typically, it is only 15 to 30 business days. Even though it’s referred to as a title loan for cars, this loan can also be used to finance other vehicles, like motorcycles or trucks.
Clear title is required to qualify for a car-title loan. Greendayonline.com is a site to buy quick title loan.
What is fairness, exactly?
Equity is the fair market value of an asset like a house or car, minus any outstanding debts.
Common names for car loan are “Title pawns”, title pledges, and “pink voucher loans”. The pink paper on the back of California’s car titles was once printed on, which is why “pink slip” is so common.
The lender will often want to see your title as well proof of insurance, ID and the car.
When you are approved for a car loan you will have to issue the title of your car to your lender. Only after you repay the loan can you get your car title back.
2) Car title loans can have high interest and fees
In order to fund an auto loan, most lenders charge 25% of the loan amount per month. For example, $ 1,000 for a 30-day auto title loan will result in a $255 fee. Additional costs of $ 1,250 will be required to pay off the loan. at the end.
This is a more than 300% annual percentage rates, also known as APR. This is generally significantly higher than any other forms credit like credit cards. Your lender should provide details about the loan’s APR, as well the total cost. You can even compare this information to other lenders in order to find the best deal for you.
3) If you don’t pay your car loan, you risk losing your car
If you have an auto loan and don’t repay the full amount, your lender can transfer your loan to a different vehicle. Once you do this, you can add additional interest and fees to your loan.
For example, a $ 500 loan might be combined with $ 125 fees. You cannot repay the full amount within the given 30 days. The $ 125 fee is paid and the original $ 500 is transferred into a new loan.
Your new loan will cost you $ 250 more than the original $500. Renewing your loan can lead to additional charges, which could make it difficult to pay the lender.
If you find yourself in financial difficulty, your lender may be able to repossess your car. Additionally, the lender may charge you additional fees to recover your vehicle and the overdue amount.
Simply put, this means that if you cannot resolve the issue you will need to look for (and then pay for) alternative transportation.