When you’re going through a financial emergency, you might need to borrow more than just a few hundred dollars. A payday loan or cash advance probably won’t be enough and you might be considering other options. With an auto title loan you could borrow a lot more – but is there a limit on how much you can borrow?
How Does an Auto Title Loan Work?
The amount you can borrow on an auto title loan is determined by how much your vehicle is worth. The lender will take into account its year, make, model and mileage, as well as its physical condition. After your lender has valued your vehicle, they’ll tell you how much you can potentially borrow (assuming, of course, you meet any other criteria the lender might have).1
In terms of a maximum loan amount, that depends upon your lender and their own lending guidelines, as well as individual state laws. Certain states have strict laws regarding the lending proves. Also, some lenders might cap the maximum loan amount at a certain level, whereas others might be willing to lend you closer to your vehicle’s value. If, for example, your car is considered a classic and worth $50,000, there may be some lenders who might be able to lend you tens of thousands.1
Once you’ve received your money, the lender will add themselves as a lienholder on your vehicle. This means they have a stake in your vehicle, but it doesn’t mean that they own it. However, if the car is written off, the lender is entitled to receive a payout first.
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It also entitles the lender to repossess the vehicle if you fail to make your payments. If that happens, the lender will sell your car and use the proceeds to help pay off whatever you owe.
Knowing if the vehicle title has a lienholder is important, as it could determine if you’re able to get another title loan or not.
Which Auto Title Loan is the Best Option If I Already Have a Title Loan?
If you’ve already got a title loan on your vehicle and need to borrow more, there are a few things you can do before you start calling other lenders. For example, is your current lender able to help you out? Rather than starting the process with someone new, it might be worth asking if you can borrow more on your existing loan. That’s called an auto title loan refinance.
If that’s not an option, you’ll need to get a payoff quote for your loan. That way, when you call other lenders, you’ll be able to tell them how much you owe and the lender can determine if they’re able to help.
It can be a time-consuming process calling lenders to find one who can pay off your loan. A ChoiceCash Auto Title Loan, serviced by LoanMart, has helped thousands of people in a similar position and could potentially help you too.1
Simply visit www.choicecash.com or call 855-277-4847 toll-free and you could find out in minutes if your vehicle qualifies.1 A loan specialist will then review your options and discuss the next steps.
With your permission, this will often involve calling your existing lender to find out how to pay off the loan, but don’t worry, it won’t slow down the funding process. If your existing lender is able to take the call, it can be completed in minutes and you could continue with the next steps.
As long as your vehicle holds enough equity to pay off your existing loan with enough to spare for cash in your pocket, you could be prequalified for a ChoiceCash Auto Title Loan.1
The whole loan process, from start to finish, can be completed in 24 hours or less – and without ever needing to leave the comfort of your own home.1
What Are the Other Benefits of a ChoiceCash Auto Title Loan?
Besides being able to pay off an existing lender and get your funds rapidly, there’s another big benefit to a ChoiceCash Auto Title Loan that’s hard to find elsewhere: payments that can go down.2
With a regular loan, your payments remain the same throughout the entire term, but that’s not the case with a ChoiceCash Auto Title Loan. When you make your monthly payments on-time, you can be rewarded by having your annual interest rate reduced.2 When that happens, your monthly payments are also reduced, allowing you to save a little bit extra every month.2
Over the lifetime of the loan, you could see your payments nearly halved – and if you want to pay off your loan early, there are no prepayment penalties, balloon payments or other fees.
If you already have a title loan, don’t wait another minute to get the cash you need today. Call 855-277-4847toll-free and speak to a loan specialist about your situation. Alternatively, you can get started by visiting www.choicecash.com and answering a few basic questions about yourself and your vehicle. Get the answers you need in minutes and the cash you need in just hours by applying today!1