There Are Title Loan Laws in Place to Protect Borrowers
As a Florida resident, applying for traditional bank loans can be challenging if you have a bad credit history. Not only can they come with high-interest rates or hidden fees, but you may also be denied if your score is deemed too low. This is terrible news if you need money for an unexpected cost! Not everyone has the disposable income to cover emergencies that pop up, and it can be stressful trying to borrow money from family or friends.
If you can relate to these circumstances, a short-term financial solution is available! You can inquire about title loan funding to potentially access money within the same business day as starting.1 With a ChoiceCash title loan serviced by LoanMart, qualified borrowers can expect an online process that is easy and flexible!1 You can begin by filling out this inquiry form or calling 855-422-7402 today.
While this is an excellent option for many people who need money quickly, it’s also essential to learn about Florida’s motor vehicle repossession laws! If you miss payments on a title loan agreement, you risk having your car repossessed by the lenders. However, this is typically the last resort that anyone wants to take. Learn why title loan funding is perfect for accessing money when you need it most and how to handle your finances responsibly!
How Does a Title Loan Work in Florida?
Before you can learn about Florida’s title loan repossession laws, you should first learn how a title loan agreement works. Car title financing is a secured loan agreement that allows a borrower to use their car as collateral for funding from a lender. They are ‘secured’ because a person’s personal property is the insurance if the funding is not repaid. If approved, the title loan lender will place a lien on the motor vehicle title during repayment.
If a borrower fails to make their monthly payments on time, they risk having their car repossessed. On the other hand, unsecured loans don’t use physical possession in exchange for funding. Instead, traditional banks look at a person’s credit history when deciding whether or not to lend to them. This is why conventional loans can be so challenging to get approved for! A lender may think you are too risky to take a chance on.
While your credit history may be considered during the title loan agreement process, it is not the main focus. Instead, a title loan lender will care more about:
- How Much Value the Car Has
- Your Income/ Alternative Income
Your car’s value is important during this type of financing agreement because title loan lenders will use this information when deciding on your approval and funding amounts. Whether or not you make a steady income is also important because it shows that you will be capable of repaying the funds.
What Are the Repossession Laws for Title Loans in Florida?
As with any loan agreement, a Florida title loan agreement comes with risks that people should be aware of. If a borrower fails to repay the funding within the agreed time, title loan lenders can repossess the vehicle.
In Florida, however, title loan lenders must wait 30 days after the last missed payment, or the loan’s maturity date, to reclaim the property. They also must notify the borrower beforehand and allow you to turn the car over at a convenient time and location.
Lenders will typically sell the motor vehicle for profit, but they are required to give you the surplus from the sale of that car, minus what you owed on it and expenses incurred from the repossession. You can take the lenders to court if you haven’t received the surplus money from the sale. Contact the Florida Attorney General’s Office if you are in conflict with a title loan lender about your car’s repossession or receiving the surplus from the sale.
You may have to hire representation to bring a lender to court over surplus from the car sale by finding a lawyer with reasonable attorney’s fees. You can retain physical possession of the vehicle by potentially repurchasing it at the auction!
In general, when a lender repossesses a motor vehicle, it is the last resort they want to take. Contact a Florida title loan agent if you are struggling with your payments, and you may be able to work out an alternative solution.
What Are the Other Laws Surrounding Title Loans in Florida?
Florida title loan lenders must accept partial or early payments. That means a borrower can pay partial amounts towards the loan’s principal, and you cannot be penalized for paying off your loan early.
Some traditional banks will put prepayment penalties on their loans to prevent borrowers from paying back the total amount too quickly. That way, they will not lose out on collecting interest rates over a certain period.
You can read more about all the financial regulations online regarding title loan laws in Florida by visiting the official Florida Legislator website! There is a lot of legislation in place to protect qualified borrowers from predatory lending practices and ensure that a reasonable opportunity to borrow is available for all.
What Are the Requirements for a Title Loan in Florida?
As long as you repay your loan funding on time, inquiring about a ChoiceCash title loan serviced by LoanMart can be an excellent option for people with bad credit!1 The process is easy, flexible, and doesn’t have a demanding list of criteria that need to be met. Instead, the requirements for a title loan agreement are relatively straightforward:
- Be an adult at least 18 years old
- Have a legal car title in your name
- Be able to show proof of income
You must be at least 18 years old to inquire about a ChoiceCash title loan serviced by LoanMart in Florida.1 That’s because entering a title loan agreement is a big decision; therefore, you must be an adult when doing so!
Next, you must have a legal car title in your name. The car title is the collateral for the loan! If you are still financing your vehicle, you may still have the opportunity to apply for a title loan if your vehicle has enough equity. however.1
Finally, you must be able to show proof of income or alternative income. Title lenders want to know that a borrower will be able to repay the loan funds and look at a person’s income when deciding this. The good news is that you don’t need to work a traditional 9-5 position to qualify! There are many alternative forms of income that may be acceptable during the approval process. 1
Documentation for a Title Loan in Florida
Gathering the documentation for a title loan before you begin the inquiry process can save you a lot of time! Before getting started, you should ensure you have this paperwork – but you can submit these documents online for your convenience. The good news is that these documents aren’t obscure or difficult to track down– they are things that most adults keep on hand.
- Government-Issued Photo I.D.
- Proof of Residence in Florida
- Proof of Steady Income
- Legal Car Title in Your Name
- Recent Photos of the Vehicle
You must provide a government-issued photo I.D. to prove your age and identity. You can do so with a driver’s license or a passport. Next, you will need to show proof of residency. While ChoiceCash title loans serviced by LoanMart are available in many states 1, they are not available in all of them! You can prove that you live in Florida by providing a piece of official mail, like a utility bill or a bank statement.
Showing proof of a steady income is essential when you’re inquiring about a Florida title loan because it shows that you will be capable of paying back your funds! The good news is that many alternative forms of income may be accepted during the approval process. You can use:
- Worker’s Compensation
- Social Security Benefits
- Alimony/Child Support Payments
- Settlement Income
- Self-Employment
Perhaps you run an online storefront, or maybe you do handyman jobs around your community. You don’t need to work a traditional 9-5 position to potentially qualify for title loans in Florida!1 People from all walks of life and financial backgrounds are welcome to inquire.
After showing proof of a steady income, the next thing you will need to show is a legal car title under your name. A title loan in Florida depends on using a borrower’s motor vehicle as collateral for funding; therefore, you can not follow through with this agreement without one!
Finally, you may be asked to show recent pictures of your car. You can do this conveniently by sending the pictures via email or fax! While a vehicle inspection is required to determine the car’s current condition, an online inspection will suffice!
How Much Cash Can I Get From a Title Loan in Florida?
You may wonder how much cash you can get from a Florida title loan. The answer depends on several factors! The principal amount for a title loan can depend on how much value your car has and how much income you make.
The amount of equity in your car is considered during the approval process because it directly affects how much money you could qualify for. You can find out how much equity your car has by taking the vehicle’s overall value and subtracting how much you owe on it in payments. You can also use this helpful calculator tool to get a car equity estimate by entering in some basic information!
If you want another way to get an estimate of your car’s worth, you can also use Kelly’s Blue Book to find out.
How Is Car Value Calculated in Florida?
A few factors are looked at when determining a car’s value. They include:
- Make, Year, Model of Car
- Mileage
- Style of the Car
- Overall Condition
- Any Modifications/Upgrades
The make, style, model, and year your car was manufactured can significantly impact how much it’s worth. Newer vehicles can have more value than older ones, but that’s not always the case! An older car doesn’t mean it won’t be worth anything. Some vehicles have remained in high demand for many years, making them popular on the market! Some examples include some Chevrolet models, Honda Civics, and the Ford F-Series.
The mileage of a motor vehicle can have a significant impact on its value. Cars with more than 100,000 miles may have difficulty with their resale value. That’s because high mileage means your vehicle has been through a lot of wear and tear and may not run as efficiently as it would have when it was new. As long as you’ve driven your car an average amount, the value shouldn’t be negatively affected!
The overall condition of your car will be considered during a title loan agreement. Here are some questions to ask yourself:
- Have you taken your car in for regular maintenance check ups?
- Have you fixed minor repairs like dents or scratches?
- Does everything work under the hood?
As long as you have taken good care of your car, you shouldn’t have to worry too much about its value decreasing!
Finally, the last factor that is considered concerns any modifications or upgrades you have done to your vehicle. Upgrades like replacing old tires or new brake pads can increase your car’s value! But some changes can negatively impact value, like adding loud exhausts or fancy alloy rims.
Keep Florida Title Loan Laws in Mind
Thanks to the Florida Title Loan Act, a big financial regulation is in place that prevents title loan lenders from implementing predatory lending practices on borrowers.
These are consumer-secured loans, but borrowers must abide by the written agreement and pay their funds back on time, or they will hear from a repossession agent. According to Florida law and the Florida Title Loan Act, they must wait 30 days after the title loan’s maturity date before a lender takes possession of the vehicle. Additionally, they must give ample warning time to the borrower and allow them to find a convenient time and place for the repossession.
You should contact a credit counseling service if you are struggling with your finances. They may be able to help you learn how to manage your money more efficiently!
Inquire About Title Loan Funding in Florida Today
No one wants their personal belongings taken away from them. As long as you keep up with your monthly payments, you won’t have to worry about the repossession of your car during a title loan agreement. With a ChoiceCash title loan serviced by LoanMart, you can complete the inquiry process online and may get approved within the same business day! 1 Get started now by filling out this inquiry form or calling 855-422-7402.