If you need to secure funds quickly due to an unexpected emergency or expense, a title loan may be a way to do so. Taking out title loans for older cars is a great way to discover your car’s worth and use it as collateral.
Deciding to move forward with a title loan allows you to access the cash you need. However, you may wonder if your car qualifies for auto title loans in Phoenix — or if it’s a good idea to take a loan out at all.
Continue reading more about title loans and learn if they’re a good idea for your circumstances.
What Is a Title Loan?
Title loans are a type of short-term collateral loan. This means the loan company values your vehicle and then uses this value as a lien until you pay off the total loan amount. Simply put, you get quick cash in exchange for your title.
How Do Title Loans Work?
Now that you know what a title loan is, you may have lingering questions about how they work. The lender will not take your car when you take out a title loan. Instead, you get a cash loan amount that depends on the value of your vehicle, so you get to keeping driving your car and access the cash you need.
Most often, the percentage you receive for your car ranges from 25% to 50% of the total car value. So, for example, if you need $3,000, your car must have a value of at least $12,000 if the rate is 25%. This is why it’s essential to determine the value of your vehicle before taking out the loan to guarantee you’re getting the amount you need.
Once you take out the loan, you’ll continue paying off your monthly fixed amount. If you do not pay back your loan payments within the agreement terms, your vehicle is the collateral that can be confiscated.
Title Loan Eligibility for Older Car Models
Since the overall assessed value of your vehicle directly affects the loan, you might be wondering if there are restrictions on title loans for older car models that may not be worth much monetarily.
You should note that loan companies go off of vehicle guides when applying for title loans on aging vehicles. In addition, older vehicles have more mechanical problems and more mileage, so they may not be valued as highly as new cars. However, with proper car maintenance, even vehicles with over 100,000 miles are worth a noteworthy value.
If you find your older car does not equate to the value you were expecting, it’s wise to consider title loans on classic cars instead.
Securing Title Loans for Vintage Cars
Vintage and classic cars are typically worth more money than standard older automobiles. Using one is a good way to receive a higher lump sum of cash for a car you may not drive as often as your everyday car with more wear and tear.
Classic cars can be worth a lot of money. This is especially true if they are well-maintained and have high collector value, making the perfect combination when applying for a title loan.
Requirements for Auto Title Loans for Older Vehicles
No matter the type of vehicle you plan to take out a title loan with, you’ll need these specific items and requirements to apply:
- A valid driver’s license
- Car registration and clean title
- Car insurance
- Government-issued ID forms (up to two), which include social security cards, birth certificates, passports, etc.
- Pay stubs for proof of employment
- Must be 18 years old
One final requirement is that the car needs to be lien-free. This means the car must be in your possession entirely. For example, another person cannot partially own the vehicle with you unless you also have them sign for the loan, nor can you have payments still due on the vehicle.
Choose Locally-Owned Loan Experts
If you’re looking for a local company in Tucson, AZ, offering title loans for older cars, consider Cheap TitleLoans.Com. Our lenders promise to provide low interest rates and plenty of options for title loans on older automobiles and classic cars.
So, if you’re wondering how much money you can get from a title loan, it’s time to find out so you can get the cash you need as efficiently as possible. Call Cheap TitleLoans.Com in Tucson, AZ, at (520) 200-5626 to apply for your title loan and get money in your pockets today!