Vehicle loans, also called title loans, in New Mexico work much like title loans in other states. Borrowers take their qualifying car titles in their own name and use it to secure a loan. They have many of the same advantages as other short-term loans, for example:
- No lengthy application process – you may be able to get your money in as little as one business day3
- Poor credit okay – Lenders are generally more interested in the value of your car and your ability to repay your loan than your credit history
- Competitive loan terms – Because title loans are secured, you are often able to get access to more money, at a better interest rate, for a longer repayment period
Because you are using collateral to secure your vehicle loan, vs something like an unsecured payday loan, lenders are often willing to give borrowers better loan terms, such as more money or a better interest rate. They are able to do this because if the borrower defaults, the lender can recover their money by selling the borrower’s car.
How much money can I get for a vehicle loan in New Mexico
Vehicle loans are governed by the New Mexico Small Loan Act. It sets the maximum amount of money you can borrow with a vehicle loan in New Mexico at $50,000. However, the actual amount of money you can borrow will actually be determined by a few things1:
- Loan Terms
- Value of your vehicle
The value of your car will determine the absolute maximum amount you can borrow for a vehicle loan. However, the actual amount you are able to borrow will be determined by your ability to pay back your vehicle loan. Generally, the more you can pay back, the more you can borrow1.
What do I need to get a Vehicle Loan?
There are only a few things you’ll need to put together for a vehicle loan:
- Qualifying title for the vehicle
- Government-Issued I.D. (Driver’s License, State I.D., Passport, etc.)
- Proof of Income
- Proof of residency
- Photos of the front, back, and sides of vehicle
What is considered proof of income for a Vehicle Loan in New Mexico?
Many people believe that a paystub is the only way you can show proof of income for a vehicle loan. However, that’s just one of the more common ways to show you have enough money to pay your vehicle loan back. Some of the other ways to show proof of income are:
- Workers’ Compensation
- Settlement/Court-Ordered Award
- Social Security
How do I get a copy of my vehicle’s title?
Your local Department of Motor Vehicles (“DMV”) may be able to provide you with a duplicate copy of your car title. Some DMVs may even be capable of providing you an expedited copy of your car title. Depending on the situation, LoanMart may be able to assist you in finding a local DMV capable of assisting you, or even help you directly to get your expedited title loan. If you are able to add LoanMart as a lienholder at that time, you might be able to reduce the time between submitting your information and having your loan processed.
How much interest can I be charged for a Vehicle Loan in New Mexico?
New Mexico has no laws regarding the amount of interest you can be charged on a car title loan. However, being charged 25% per month is not unusual.
What happens if I don’t pay back my vehicle loan in New Mexico?
If you find that you can’t pay back your vehicle loan, it’s critical that that you contact your lender. It may be possible to roll your loan over and extend the terms of your loan. If you are able to do this, you’ll have to pay any interest you owe the lender at that point. Then, the time you have to pay your loan back will be extended and you’ll have to pay for any new interest and fees that accrue.
If you don’t pay your loan back, your lender is allowed to repossess your car. New Mexico has no right to cure period, meaning as soon as you default on your loan your lender may repossess your car. There is no grace period during which you can pay back your loan. Once they repossess your car, they can sell it without notice.
How to get a Vehicle Loan with LoanMart
Now that you know what vehicle loans are and how they work, you can see they are usually a good way to get money in an emergency. You can use your qualifying car title in your name to potentially be eligible for a vehicle loan of up to $50,0001. You may be able to get your funds in as little as 24 hours because of LoanMart’s streamlined application process3.
With our easy process, we give you three ways to contact us that make it convenient for you:
- Visit a participating location
- Call us at 1-877-4923
- Sign up online without leaving your home
Once you’ve decided how to get in touch, all you have to do is follow these steps to get the money you need1:
- Fill out the registration form
- Submit your important documents to your LoanMart representative
- Sign your LoanMart agreement
- Collect your funds!
Never let an unexpected expense get your budget off track. Let LoanMart help you get your budget back on track.