Auto Equity Loans

What Are Auto Equity Loans?

Auto equity loans, also known as car title loans or pink slip loans, are vehicle-secured loans that allow you to borrow against your car’s value and get fast funds to cover various expenses. To qualify for this type of secured loan, you will pledge the title of your vehicle as collateral for the loan. Since a car equity loan is secured by your vehicle’s title, the application process can be more flexible than many traditional bank loan options. If you’re struggling with a tough financial situation, you can apply for an auto equity loan online and access your loan proceeds in as little as one business day if you’re eligible for funding.¹

Before you apply for this type of secured loan, ensure your vehicle has enough positive equity to qualify for an automobile equity loan. If your car or truck has a reasonable amount of value and you meet the lender’s application criteria, you can generally borrow up to half or more of your vehicle’s equity! Conveniently use ChoiceCash’s online calculator tool to get a quick estimate of your vehicle’s value and a loan quote, free of obligation.¹

The following auto equity loan requirements must be met in order to get approved for the money you need for an unexpected bill or expense:

• Be at Least 18 Years Old
• Your Vehicle Must Have Enough Value to Use as Collateral for the Loan
• Have a Car Title in Your Name and in Your Possession
• Proof of Your Ability to Make a Loan Payment

Depending on the auto equity loan option you choose to apply for, you may need to have active car insurance coverage to qualify for fast emergency funding. While proof of income is required to get full loan approval, you don’t need a 9-5 job to meet this requirement. If you don’t get regular pay stubs but you still earn a living through other means, you can simply provide proof of your alternative source of income, such as workers’ compensation, settlement income, Supplemental Security Income (SSI), or child support payments.

If you’re interested in applying for a vehicle-secured loan, you can start the application process for a ChoiceCash loan serviced by LoanMart by filling out a short prequalification form online or by calling a loan representative at 855-422-7402. There’s no need to leave your home to apply for quick funding, and you don’t need an active bank account to qualify. Continue reading to learn more about auto equity loans and how they can be helpful when you need cash for an emergency.

What Are the Pros and Cons of an Automobile Equity Loan?

An auto equity loan can be a lifeline for those who are experiencing a financial crisis. Through a car-secured loan, you can access quick funds to handle unexpected expenses without going through a strenuous application process. However, as with any loan, there are some possible drawbacks to consider before you apply for funding to ensure you are making the right choice for your financial situation.¹

Take a look at the pros and cons of getting auto equity loans in California, Florida, or another applicable state:

Pros:

• Bad Credit Isn’t Always an Issue: Finding a traditional lender willing to work with you can be difficult when you have a poor credit score. However, a perfect credit history isn’t required to apply for a car equity loan online! Since you must use collateral to secure the loan, your credit score isn’t the main factor that a lender will consider during your application. Call a ChoiceCash title loan agent today at 855-422-7402 to learn more about qualifying for auto equity loans for bad credit.
• Potential for Lower Interest Rates: Secured loans, like auto equity loans, may offer lower interest rates compared to unsecured loan options, like some personal loan and payday loan providers. If you have poor credit, you may receive a more optimal interest rate through a secured loan than an unsecured loan because you are required to use your car’s title as collateral for the loan. While the car equity loan interest rate will depend on the lender you work with, your credit history, and your state of residence, you can expect to access competitive interest if you qualify for a ChoiceCash car equity loan serviced by LoanMart. Additionally, you won’t have to worry about balloon payments or prepayment penalties during the repayment process for a vehicle equity loan. You’ll also receive flexible loan terms by qualifying for a loan against your car!¹
• Keep Driving Your Car: With a car equity loan, you can continue driving your vehicle throughout the repayment process, even though you’re using the title as collateral for the loan. Ensure that your monthly payments are made on time to maintain access to your car.
• Car Does Not Have to Be Fully Paid Off: Are you still paying off an auto loan, but you need cash to deal with unexpected expenses? Don’t let your car loan hold you back! Getting a vehicle equity loan on a financed car is possible as long as your car meets the equity requirements. If you’re still making payments on your vehicle, you may have to complete and sign a form authorizing your auto equity lender to pay off your existing car loan.

Cons:

• Car Must Have Enough Equity: The value of your vehicle is one of the primary factors determining your eligibility for an auto equity loan online. Vehicle equity is the difference between the car’s market value and the amount still owed on the car, so if the owner is currently financing the vehicle, it will impact the vehicle’s total amount of positive equity. Your car must meet the lender’s equity requirements, and you must have the title in your name and in your possession when you submit your application. If your car has negative equity – meaning that you owe more on your car loan than the vehicle is currently worth – you will not be eligible for a loan.
• Risk of Repossession: The downside of using a vehicle as collateral for a loan is the potential risk of repossession if you miss your monthly payments and default on your loan. If you need your car to commute to work or drive to school, losing your vehicle can disrupt your daily routine. If you have problems making a loan payment, it’s important to communicate with your auto equity lender during the month before your due date to find a productive path forward.
• Credit Score Could be Impacted: Failing to meet your payment obligations can negatively impact your credit history if your lender or loan servicer reports your payment behavior to a major credit bureau. Although it’s possible to build your credit after it dips a few points, getting your credit score back into good standing if it falls significantly can take a long time. The best thing you can do as a borrower is to be on time with your loan payments and keep track of your payment schedule each month.

If you’re looking for a convenient loan to give you quick access to cash, an automobile equity loan can be a fast and flexible option. While auto equity loans have some potential drawbacks, you can avoid these problems by being a responsible borrower and staying on top of your monthly payments! Don’t hesitate to call a loan representative at 855-422-7402 if you have questions about a car equity loan that can help you feel more confident about starting an online application.

How Do I Apply for a Car Equity Loan?

The best auto equity loans are often the ones you can apply for online or over the phone. You don’t have to go anywhere to apply for fast cash when you can begin an application from the comfort of your home! Take a look at the three simple steps you must complete to apply for a ChoiceCash auto equity loan serviced by LoanMart:¹

1. Start Your Loan Request: You can start your application by filling out a brief pre-approval form, or you can apply over the phone by calling the toll-free number.
2. Submit Some Documents: If you receive initial approval for a car equity loan, you will be required to upload a few documents to verify your information. The requested paperwork mainly consists of your car’s title, proof of income & address, photos of your vehicle, and a valid, government-issued photo ID.
3. Get Approved and Receive Your Money: If you’re fully approved for a loan, you will decide how to receive your funds and sign your electronic loan agreement! Borrowers who are eligible for a ChoiceCash car equity loan can get their money as soon as the next business day.¹

Don’t wait to apply for the funds you need for an unexpected expense. Apply for an auto equity loan online by completing a quick questionnaire or by calling a loan representative at the toll-free number.

Faqs About Auto Equity Loans

Below are a few commonly asked questions about auto equity loans that may provide some additional background about getting a loan against your car:¹

Are Auto Equity Loans a Good Idea?

Plenty of loan options may provide you with quick emergency cash if you’re in a financial rut. However, traditional bank loans are often more difficult to qualify for when you have poor credit. If you want a flexible and convenient way to borrow money with bad credit, a car equity loan can be an alternative option to consider. Ultimately, you have to decide for yourself which loan option best fits your needs.

Where Can I Get an Auto Equity Loan Near Me?

Auto equity loans are typically offered by online lenders and credit unions across the United States. If you’re interested in accessing a portion of the equity in your car, you must compare all of your options carefully and choose the most advantageous loan that fits your unique preferences. A ChoiceCash car title loan comes with several benefits, including fast funding, a smooth application process, flexible loan terms, and many different ways to pay your loan. You can submit your application online or over the phone at your convenience! No need to visit a brick-and-mortar location to apply for the cash you need. Just complete a fast questionnaire online or call 855-422-7402 today to get started.¹

Can I Cash Out Equity on My Car?

Yes, you can effectively “cash out” equity on your car by applying for an automobile equity loan. With a vehicle-secured loan, you are essentially borrowing against the value of your vehicle by pledging its title as collateral for the loan. Depending on your car’s equity and your income, you can potentially borrow up to $15,000 if you qualify for a ChoiceCash loan serviced by LoanMart!¹