How Does a Car Title Loan Work?

A car title loan provides people with a simple, fast way to get cash in their time of need. It is a loan type that has been around for a few years now. While it’s received some scrutiny during its time, thousands of people know firsthand that it is extremely beneficial when finances are tough. This loan is available for anyone 18+ who owns a vehicle with a clear title and who can repay the money borrowed.

People use auto loans in new mexico for a plethora of purposes, including but not limited to debts/bills, household expenses, groceries, holidays, vacation, unexpected repairs/visits to the dentists, and even to cover back-to-school shopping.

Some people use it as an auto financing loan when they need a nice set of wheels to take them where they need to go. This loan is usually repaid over a period of 30 or more days so it does not put you into a bind to repay the money soon after it is borrowed.

What is a Car Title Loan?

Car title loans provide cash in exchange for the title to your vehicle. The title is used as collateral for the loan, so if it is not repaid, the car is repossessed. It was in the mid 1990s that the car title loan concept first evolved and its popularity has only continues to soar in those 30 years. It is fairly simple to get the loan, with applicants needing only a vehicle with a clear title to qualify in most cases.

You must have a clear title to take advantage of this loan. In other words, you must outright own the vehicle and it mustn’t have a salvage title. You keep the vehicle, but supply the loan company with the title and a set of keys to the car until the loan, plus interest fees, is repaid in full.  The amount of the interest varies from one loan to the next and is dependent upon individual circumstances.

The loan is repaid over a period of 30-days or more. But, you keep and use the vehicle as you otherwise would, so there is no extra headache due to a lack of transportation when you’re already frustrated enough due to your financial burdens.

Car title loans range in value from $100 – $10,000 (and sometimes more). The amount of money that you can receive via a title loan is dependent upon the type of vehicle you drive, including the make, model, and the year. Generally speaking, you’ll get 40% of the Kelly Blue Book value of the car in a loan.

The loan provider will access the value of the vehicle and make an offer for your loan needs. You can accept or refuse the amount and there is never any pressure either way. If you decide to accept the loan, there are no questions asked. Used the money in any manner you choose to use the money.

Once the title is in the hand of the lender, the money is yours to do with as you please.  Keep in mind that while you’re given full access to the vehicle to use as you normally would, many loan providers do require that a GPS tracker be installed in the vehicle.