Getting a car title loan is a lot easier than people think. It’s just that not a lot of people think about getting one because they do not know how it works. We hope to clear that up for you so that you can make a wise decision on your loan.
Have you ever pawned an item?
If so you know that you would bring in your item, say a watch, to the pawn shop and the dealer would figure out how much the watch is worth. Then they would figure out how much they could loan you. The amount is never the true value of the item because they have to consider that you may not pay off the loan and they may end up putting it on their shelves to sell to offset their loss.
Car title loans are just like a version of this but the difference is you don’t give them the car to hold. You do not give them the car with these loans. You still drive it. You still have it in your control. Title loans go under different names and there are different programs because of this. You might have heard about “installment loans” or “auto pawns”. These are car title loans. Additionally, some companies will let you leave the vehicle during the loan and that is why auto pawn is the “sister” loan to auto title loans.
So where do you begin?
First, you fill out the on-line form on our site. This will tell us two things. One, who you are and how to contact you and two, information about the vehicle. We then use a couple programs to figure out the value. Kelly Blue Book and sometimes Black book. These will tell the wholesale value of the vehicle.
Next, we go to our lenders and see which one has the best program. We determine the best program based on the amount they will loan you, the loan interest rate and the duration and term of the loan. We then inform you and the lender of your inquiry and stay in contact with you until you have either told us that you no longer need the loan or that you have been given the loan and are happy with the result.
When you get ready to get your money you will need following:
- Govt. issued photo ID
- Free and Clean Title
- Three references not related to you
- Insurance (Arizona Only)
- Social Security Card (or a Document on which your name and SSN both are listed)
The lender will ask you to sign a loan agreement with them. They will also verify the condition of your vehicle and odometer. They will also be placed as a lien holder on the title until the vehicle title loan is paid off.
When the underwriter contacts you, they will quote you a number which is the maximum amount they can loan you. You do not have to take that full amount but you can if you desire. You will also be quoted an interest rate. Note that this rate is a monthly rate, not yearly, based on the amount of the loan. You will make monthly payments based on the duration you request, the interest rate amount and the principal.