Looking to get cash for a title loan? Learn how much cash you could get based on your car’s value. Plus find out what you need to qualify for a cash title loan.
We use our cars for many things. They get us to and from work, they help us pick up groceries, pick up kids, go on vacation, and so much more. Our cars get us where we’re going.
But did you know your car can also help you financially get where you’re going too? Your car is worth more than what it can do for you. Your car has a cash value and in more ways than one.
What are Cash Title Loans?
Cash title loans are a way to access some of your car’s worth without having to sell it. By using the title of your car, you can take out a loan that reflects a percentage of your title’s financial worth. What’s more, you can do all this without selling your car or giving it over to a lender. Due to your title being used as collateral, it is typically easier to be approved for this type of loan if you do not qualify for a personal or payday loan.
What is the Title Loan Value of My Car?
Since title loan amounts are based on the title value, the title loan estimate is based on this value as well. Financial institutions that offer auto title loans will often offer a percentage of the title’s value. So whatever your auto title is worth, you could potentially get a percentage of that value based on the financial institution’s policies.
Want to find out what the title loan value of your car is? First, find out the value of your car.
Title loan lenders generally let customers borrow between 25% and 50% of the value of their title. Once you know how much your title is worth, you can use these percentages to find out how much you can get for a title loan.
Complete the following equation to find out how much you can potentially borrow:
Title Value x (Percentage as a Decimal) = Loan Amount
Title Loan Value Examples
For example, if a lender lets you borrow 50% of the value of your auto title, and your auto title is worth $1,000, then you can possibly get a title loan amount of $500. Here is the equation you might follow in this instance to find how much cash you can get for this title loan:
Title Value x (Percentage as a Decimal) = Loan Amount
OR
$1,000 x 0.50 = $500
If a lender lets you borrow 25% of the value of your auto title, and your auto title is worth $1,000, then you could possibly get a title loan amount of $250. Here is the equation you might follow in this instance to find how much cash you can get for this title loan:
Title Value x (Percentage as a Decimal) = Loan Amount
OR
$1,000 x 0.25 = $250
After completing these calculations you can get a rough estimate of how much you might be able to borrow. In this instance, with a car title value of $1,000, you could borrow between $250 and $500.
For a title loan estimate, contact your loan provider and speak with a loan representative. They might be able to give you an exact estimate or a general range for how much you might be able to borrow.
What Do I Need for a Title Loan?
To get a title loan you don’t just need a title. You also need a few other things in order to finish your application and to get loan approval. Since a title loan is a secured loan, most likely you’ll need the following things to apply:
- The ability to repay
- A government-issued ID
- Auto title
Loan approval requirements vary depending on the lender. You also might need a high credit score or a vehicle that doesn’t have high mileage or lots of wear and tear. But if your loan is approved, you’ll be able to borrow the money and make monthly payments on a payment schedule.
If you are approved, you’ll also give the lender the title to your vehicle. This will act as the collateral for the secured loan. But do you get to keep your car? Do you have to install a GPS tracker on your car? This all depends on the loan provider you are using.
Get answers to your title loan questions.
Once your loan payment schedule is over and the loan is repaid, you’ll get your title back from the lender.
Your car is useful in more ways than one! By using the title of your vehicle, you can take out a title loan and get fast cash today. Many lenders also let you keep driving your car even after taking out this short-term loan.
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