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If you are in need of quick financial relief due to house damage, an unexpected medical bill, or even veterinary surgery, a loan may be a great option to consider. But with the vast amount of loan choices out there, which option should you go with?
With a title loan, qualified borrowers may be able to get the money they need in as little as one business day!3 In order to qualify, potential borrowers typically only need to meet two requirements, have a car title in their name and a consistent source of income.
If you own a car in your name, you could inquire for a title loan! But how much is your car worth for a title loan?
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How to Value a Car for a Title Loan?
In order to qualify for emergency funding through a title loan, you need a qualifying car with sufficient equity.
There are many factors that make up the equity of a vehicle. What is equity? The equity of a vehicle is a general financial sense of the current and potential economic worth of an automobile. The higher the equity of a vehicle the more it is worth. In turn, when you get an auto title loan on a vehicle with a high equity, you can be approved for a larger amount of funding.
A car can have positive or negative equity.
- Positive Equity: Your car has positive equity when it is worth more than the amount you owe on it. If your car is valuable and you are close to paying off the car, then you likely have positive equity.
- Negative Equity: Your car has negative equity when it is worth less than the amount you still owe on it. If you still owe a lot on your car, and the car does not have a high resale value, you may have negative equity.
If you would like to find out the equity you have in your car, you need to calculate how much you still owe on it and find out how much the car is currently worth on the market. To determine the current value, you need to receive an appraisal. This can be easily done online by using a car title loan calculator.
To use an online calculator and learn your car worth, you will need to know the vehicle year, make, model, style, and current mileage. Once you input these details into the calculator, you may get a preapproved decision for a title loan and an estimate of your car worth.
What Factors into the Value of a Car for a Title Loan?
How much your car is worth greatly determines how much you could get with title loan funding. The loan amount a borrower receives is based on a percentage of the car value.
A lot of factors affect how much your car is worth, such as:
Make and Model of a Car
If you have a popular make and model, the demand for that type of car may be greater causing the value to go up. Some car makes and models remain popular despite age, such as Ford Mustangs and Honda Civics.
Current Condition of a Car
The current condition of your car is keenly important. If your car has damage, either cosmetic or structural, the value could decrease depending on the severity. Not a lot of people find value in damaged vehicles.
Current Mileage of a Car
The current mileage may increase or decrease the value of your car. Having high mileage may lower the amount your car is worth, while having low mileage may increase it. The mileage on a car is greatly affected by the vehicle year, as drivers typically travel 13,500 miles each year.
Modifications of a Car
Another factor that contributes to a cars value are certain alterations on a car. For example, a car that has just received a brand-new engine is usually going to have a higher value than the exact same car with the original engine. I’m sure you can guess why a newer engine would give a car an economic edge. Customarily, the more updated a car is the higher its value.
If you modified your car in any way, such as adding a spoiler or decals, you may have unintentionally lowered the value of your car. The more you customize a car to your specific tastes, the less likely it is that someone may find the same value in your additions.
Vehicle Year of a Car
Consumers are constantly looking for the newest model. If you have a 2015 Toyota Prius, it is likely worth less than a 2020 model. Technology is constantly being updated, and a car that was made a year or two ago is going to utilize more modern technology than an older car. This technological advantage is what gives newer cars a higher value than older cars. However, it’s possible that having an old vehicle could get you more money! Classic cars such as a 2012 Acura NSX or 1963 Jeep Wagoneer could potentially be worth more than a 2020 make and model!
If you take care of your car, you are contributing to its equity. Those regular check-ups and tune-ups weren’t all in vain, they have been protecting the equity of your car. That is why car title loans are such a smart option, because you are using the money you have invested into your vehicle to secure your loan.
If My Car Value is Enough, How Do I Inquire for a Title Loan?
Title loans are a wonderful loan option for many drivers because they could potentially use their car title as collateral for affordable funding! If your car is worth enough, you could be deemed eligible for a title loan!
There is no obligation when you inquire for a title loan, and if found eligible, you may receive an estimate before you even officially start the approval process. To find out how much your car is worth for a title loan, all you have to do is call 855-422-7412 or fill out the online questionnaire.
Once you have been approved and have discussed your FREE QUOTE with your title loan agent, they will request a few documents from you. Some of these documents will include:
- Government issued photo ID
- Proof of insurance
- Proof of income
- Title to your vehicle with your name on it
- Photos of your car
Once everything is in place, the last step is to go over the terms of your loan with an underwriter, sign your title loan contract and receive your funding. You can choose to receive your funding in one of multiple ways:
- Electronic deposit
- Money gram
Title loans are one of the best loan options out there, inquire today to learn more!