When you take out an auto title loan, you’re using your vehicle as equity. How much you can borrow will depend upon how much your car is worth and it makes sense for you to know the value of your car before you start shopping around. So how can you get a valuation of your car? And how much could you borrow?
How is the Vehicle Value Determined?
There are a number of different factors that make up the value of your vehicle. The four largest factors are:
- Year, make and model
- Physical condition
- Title status
Not all cars are created equal (otherwise they would all cost the same!) and some cars hold their value better than others. Generally speaking, a Mercedes Benz is going to be worth more than a Honda, but it also depends on the vehicle’s age and model. Despite being the same make, two Hondas will have different values, based upon their year and model.
Tied to a vehicle’s age is its mileage. On average, a car is expected to run about 12,000 miles every year, so if your car is averaging less than that it could be worth more than other cars of the same year, make and model. (Obviously, if it averages more than 12,000 a year then it could be worth less.)
The third major factor that impacts the value of your vehicle is its condition. If it’s in excellent condition, it’ll have a higher value than if it’s covered in dents and scratches. It’s not just the exterior either; if the interior has damage, this will also affect its value.
Similarly, if the car doesn’t run very well or it needs some major work, you can expect the value to go down.
Lastly, what’s the status of the title? If the title shows the status as salvage, then, at some point in the past, an insurance company has written off the vehicle and someone else has salvaged it. This could be for a number of different reasons, but regardless of what happened, it could halve the value of your vehicle.
Is your car considered a classic? While some might say any car over 20 years old is a classic, it’s not that simple. Just because a 22 year old Toyota Camry is still running, it doesn’t necessarily mean that everyone will consider it a classic, or that its value will be higher as a result.
If, however, you own a 1957 Ford Thunderbird and it’s in great condition, then that could be worth as much as a brand new model produced today.
How Can I Find the Value of My Car?
If you want to get a good idea of how much your car is worth, it’s worth getting quotes from several sources. Many people use Kelley Blue Book to find out how much the trade-in and private sale prices are, but that’s not the only option.
Edmunds is another popular choice. It provides values for both trade-in and private sale, as well as the dealer retail value. Typically, you’ll find that the trade-in value is lowest and the dealer retail value is highest. In this situation, the trade-in value is what the dealer might be willing to spend to buy the vehicle, while the retail value is how much they’ll want to sell the vehicle for.
(If you’re interested in selling your vehicle, you could even get an offer from CarMax too.)
TrueCar and CarGurus both work in a similar fashion. By entering some basic information about your car, these sites can also give you an estimate of how much you might get for a trade-in. CarGurus goes a step further; besides also giving you a private sale value, it can tell you if a specific offer is high, low or just right.
There’s one other important piece of information to bear in mind before you shop around for a title loan: what kind of equity your vehicle has.
There are two kinds of equity – negative and positive.
- Negative equity means you owe more than your car is worth.
- Positive equity means the car is worth more than you owe.
What does this mean for you? If your vehicle has negative equity – you owe more than your car is worth – you probably won’t be able to get a title loan. Most lenders won’t be willing to lend you more money than the car is worth, because if the vehicle is written off or sold, they won’t be able to get back the full amount that you owe.
If you have positivity equity – where your car is worth more than you owe – then many lenders will be willing to work with you. If you still owe money on the car (for example, if you’re still paying off your car loan) then the new lender will want to pay off the existing loan first.
What’s the Best Auto Title Loan on the Market?
So now you know the approximate value of your car, where should you shop for an auto title loan? With so many lenders available, it’s hard to know which one is best, but many will work in much the same way:
- The lender values your car
- Your submit some qualifying documents
- You sign your agreement
- You get your money
- You make payments until the loan is repaid
The lender will have their own set of rules and guidelines for valuing your vehicle, so you won’t get the same amount of money from each one. There’s one, however, that will offer top dollar and offer benefits that many others can’t provide.
A ChoiceCash Auto Title Loan, serviced by LoanMart, not only gives you the money you need today, when you need it, but can also give you money in the future too.1
Here’s how it works. With a regular auto title loan, you use the money and then it’s gone, leaving you to make monthly payments until the loan is repaid. A ChoiceCash Auto Title Loan works differently.
When you make your payments on-time, you can qualify to automatically have your annual interest rate reduced.2 This means your monthly payment is reduced too, allowing you to save a little extra every month.2 Continue to make your payments on-time every month and you could see your payments nearly halved over the lifetime of the loan. 2
Besides this great benefit, there’s one other advantage a ChoiceCash Auto Title Loan has over the competition. As long as your account is in good standing and your vehicle still qualifies, you could potentially borrow more money in the future – but at the lower rate you’ve worked hard to achieve by making your payments on time. 1 2
It’s not hard to see why a ChoiceCash Auto Title Loan, serviced by LoanMart, is a popular option with borrowers. You can find out more by going to www.choicecash.com or by calling (855) 914 2945 toll-free. By answering a few basic questions, you could find out how much you’re eligible to borrow and, if you decide to proceed, you could be holding your money in your hands in less than 24 hours. 1
Don’t wait for your vehicle value to go down – call or click TODAY to get started!