If you’re considering an online auto title loan, you might be wondering if you’ll need to have your vehicle inspected. The answer depends on your lender and their requirements – but why is an inspection needed in the first place? And are there any lenders that don’t require an inspection?
Why is a Vehicle Inspection Required for an Auto Title Loan?
An auto title loan works by using your vehicle as collateral, with the lender offering you a loan amount based upon the value of your vehicle. The lender will most likely use your vehicle’s year, make, model, and mileage to calculate how much they might be willing to lend you.1
It’s important to remember that they won’t be valuing the vehicle based upon how much a consumer might pay for it through a dealer or private seller, but rather what it might sell for at auction. Here’s why: if a borrower consistently fails to make their payments, the lender has the legal right to repossess the vehicle and then sell it to regain some of the money they’ve potentially lost. This will be done at auction, as it’s often the quickest, easiest and most convenient way. Unfortunately, it’s hard to get the full value of the vehicle when you sell it at auction, so the lender will value your vehicle lower as a result.
Similarly, auto title loans will frequently have a minimum term of 12 months, with some terms lasting as long as five years or more. Your vehicle will most likely depreciate during this time and your lender will also take this depreciation into account.
There’s one other factor the lender will want to take into account: your vehicle’s condition. If it’s in bad physical condition or isn’t running at all, this could cause the value to drop quite significantly. For that reason, the lender will most likely want to see the vehicle first.
What’s Involved in a Vehicle Inspection for an Auto Title Loan?
Depending on your lender, there’s two possible ways you could have your vehicle inspected: either on-site or virtually.
If your lender requires an on-site inspection, you’ll need to drive to a physical location and have one of their employees conduct a quick inspection. They’ll look over the vehicle and check for damage, such as large dents, scratches, broken lights and doors etc.
They’ll also want to check the interior and take a picture of the odometer and VIN. This is to ensure the mileage is accurate for the valuation and to match the VIN on the vehicle with the VIN on the title.
The alternative, a virtual inspection, involves you taking pictures of your vehicle and submitting them to the lender. Similar to an on-site inspection, you’ll need to take photos of the front, back and sides of your car, plus the odometer and VIN.
As almost any cell phone can now take photos and video, this is the most convenient solution as it means you won’t be required to leave your home and drive anywhere. You can then submit the images electronically to the lender, saving everyone a lot of time in the process!
Which Auto Title Loan Lenders Don’t Require an Inspection?
While virtual inspections are becoming more commonplace, there are still some that require you to drive to a location to have your vehicle inspected on-site. Unfortunately, there may be no way of knowing until you call them, get approved and are then given further instructions regarding the next steps.
However, there’s one option that uses virtual inspections and that can provide a number of other benefits to potential borrowers.
For starters, with a ChoiceCash Auto Title Loan, serviced by LoanMart, the application process is quick and easy. You can either visit www.choicecash.com or call 855-277-4847 toll-free to get started. After answering a few basic questions, you could find out in minutes if you’ve been pre-approved and how much you could borrow.
Your loan specialist will then explain the next steps, and which documents you’ll need to submit. These will include:
- Proof of income – for example, pay stubs, bank statements, or government award letters
- Proof of residence – typically any mail dated within the past 30 days
- Proof of ownership – your vehicle title must have you listed as the owner
- Proof of identity – any government-issued photo ID
- References – either personal or professional
Unlike other options, you’re not required to go through an on-site inspection with a ChoiceCash Auto Title Loan. You only need to take photos of all four sides, plus the odometer and VIN, and you’re done!1
All the documents and images can be uploaded via a secure website or can be submitted via email or even SMS text message. It takes just minutes, leaving you free to continue with the rest of your day.
Once reviewed, your loan specialist will send you a link to sign your agreement online and then it only remains for you to get your money.1 You can choose to have it either directly deposited into your checking account or pick it up at a participating money transfer location near you.
What Are the Other Benefits of a ChoiceCash Auto Title Loan?
Unlike other loans, the benefits don’t end once you’ve received your money. Ordinarily, once the money’s gone you’re left with the repayments until the loan is repaid, but a ChoiceCash Auto Title Loan, serviced by LoanMart, doesn’t work that way.
Each time you make your regular monthly payments on-time, you could have your next monthly payment reduced.2 It works by reducing the annual interest rate on your loan, which in turn lowers your monthly payment.2 Continue to make your payments on-time and you could see your payments nearly halved over the lifetime of the loan.2
You could also potentially borrow more when you need it in the future – and at the same low rate of interest you’ve achieved on your existing loan.2
Don’t want to keep the loan that long? Not a problem! You can repay the outstanding balance at any time with no prepayment penalties or additional fees.
To find out if you qualify visit www.choicecash.com or call 855-277-4847. You’ll only need to answer a few questions and you could have your answer in minutes.1 The whole process can be completed without ever leaving your house and within 24 hours.1