How Do I Get an Auto Title Loan?

by carpawn on June 15, 2013


How Auto Title Loans Work

Getting a loan quickly and without hassle is a difficult process at the best of times. There are numerous credit checks involved and many times it can be problematic to acquire the acceptance of a loaning company. An auto title loan is an option that is used by individuals looking to find the fastest way of acquiring money in the form of a loan. This piece will focus on auto title loans and explain how they work for those looking to find the best way of procuring a loan.
Auto title loans are based on the ‘collateral’ system of loan giving. Any lender will be looking to ensure their money is secure in the form of property or any other asset. Auto title loans focus on the individual’s car being used as collateral in case the loan is not paid. It is a safety measure that works out well for both parties involved. The individual looking for the loan will have the money in their hands within hours upon signing the agreement. While, the lender will have the safety of knowing their money will not go down as a complete loss.

Auto title loans were brought as an option for those unable to acquire loans without collateral. It gives people an option of using their cars as a safety nets and getting the money required at the moment. When the agreement is signed, there are minimal questions asked and the money is in the hands of the person asking for the loan. It is a quick and safe process that is tried and tested.

What Happens When Someone Misses Their Payments?
When the loan is given, the agreement usually revolves around the concept of ‘missed payments’ as decided by the lender. If there are one or more defaulted payments, the lender has the option of possessing the car that was used as collateral. The safety net that was installed will be utilized in order to ensure the lender can cut its losses. This safety net is rarely used as most clients are able to pay the money back in time. It is just there in place to ensure both parties get what they want as quickly as possible. Auto loan companies provide the individual with the opportunity to keep the vehicle that was used as collateral. This enables the individual to still use the car while having the loan; it is an added perk of going with the company.
It is to be remembered that repossession of a vehicle is used as a ‘last resort’ by the lender. It is something no party wishes to participate in as it can be a lengthy procedure and less beneficial. Payment of the loan is important as it becomes a good deal for both the lender and the individual obtaining the loan.

As the ‘title’ of the vehicle is passed onto the lender upon signing of the agreement, there is only one way of getting it back. Once the loan is paid in its entirety, the company will immediately shift the title back to its rightful owner. There is no hassle involved in the process as it is automatic and no questions will be asked from the lender.

Ownership of Vehicle
It is important to note the vehicle’s registration papers have to be in the name of the person looking for the loan. If the car is not in the individual’s name, it cannot be legally used in the transaction. The lender will look for appropriate legal papers in order to ensure the vehicle is in the name of the individual. The auto title loan will only go through following the confirmation of the vehicle being in the name of the person asking for the loan.

Quick and Easy
The process does not take a long time, the entire procedure can be completed within a few hours. Most individuals looking for a loan will try to find the speediest route to resolve their financial needs and this comes in the form of auto title loans. These loans are one of the fastest ways of procuring money that is legally transacted. This is important for those looking to find a safe route to securing money. Using one’s car as collateral is not a hefty price to pay as long as one pays the loan of within the mandatory time frame.

Everything with an auto title loan is focused around the idea of one’s car and its value. This is important for those looking to avoid credit checks that might leave then unable to obtain the desired loan. Most institutions that do not use ‘auto title’ loans will look to lend money through credit checks and other established procedures. This can be difficult for certain individuals and this is where auto title loans come in. Auto title loans will only focus on the value of the car and provide money based on that fact alone. While, there are credit checks done by the company, they are not a ‘big deal’. Most will overlook certain factors as long as the value of the car is as assumed.

Acquiring Another Loan
After payment of one’s first auto title loan, the option for another one is effective immediate. There are no glitches in the process and most will go through even faster. The second auto title loan will often go through faster because of the trusted relationship now established between both parties. The lender will have more trust in the individual asking for the money and the loan will be pushed through as fast as possible.
Auto Title Loans
Car Eligibility
Looking past the car ownership details, there are a number of other factors that are taken into due consideration. The complete payment of a car is one such factor that is taken into deliberation. Upon assessment, the lender will acknowledge whether it is feasible to allow an individual to procure money based on a leased vehicle. All of these factors have to be discussed with a representative of the company. All other factors account for the wholesale value attached to the vehicle. The loans can range from $500 to several thousands of dollars dependent on a number of factors.