There are two major costs to consider when applying for a title loan. The first is interest. New Mexico doesn’t have a cap for the amount of interest lenders can charge borrowers for a title loan. That said, 25% per month is not uncommon. The other major cost is fees. Title loans can have a variety of fees. Sometimes those fees cover the cost of business transactions. For example, if it costs $20 to get a piece of documentation from the Department of Motor Vehicles (“DMV”), the lender will pass that cost on to the borrower. Some other fees are for things like appraising the borrower’s car, or late payment fees, etc.
There’s more to title loans than just fees however. If you are considering a title loan, you need to know about the advantages and other regulations surrounding them.
What are the advantages of car title loans in New Mexico?
Title loans in New Mexico function much like title loans in other states. Borrowers use their qualifying car title in their own name as collateral for a loan. They have all the same advantages provided by other short-term loans, such as:
- No lengthy application process – you may be able to get your money in as little as one business day3
- Bad credit is okay – Lenders are 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
The advantage of a title loan over other short-term loans is that because they are secured with collateral, lenders are often willing to give borrowers more money at a better interest rate for a longer period of time.
How much money can I get for a car title loan in New Mexico
Car title loans in New Mexico are governed by the New Mexico Small Loan Act. You can borrow up to $50,000 with a title loan in New Mexico. However, the amount you can actually borrow is generally affected by1:
- Value of your vehicle
- Loan Terms
What do I need to get a Title Loan?
You only need a few things for a title loan:
- Qualifying title for the vehicle, with your name on it
- Government-Issued I.D. (Driver’s License, State I.D., Passport, etc.)
- Proof of Income
- Photos of the front, back, and sides of vehicle
- Proof of residency
What is considered proof of income for a Title Loan in New Mexico?
There are a number of ways you can show proof of income for a title loan. A paystub is one way, but there a plenty of other easy ways to demonstrate that you can pay back your title loan, for example:
- Workers’ Compensation
- Settlement/Court-Ordered Award
- Social Security
How do I get a copy of my vehicle’s title?
You might be able to get a duplicate copy of your car title from the DMV. Some DMVs are even capable of giving you an expedited copy of your car title. Depending on the circumstances, LoanMart may be able to direct you to the nearest DMV that can assist you, or even help you directly to get an expedited car title. If you add LoanMart as a lienholder at that time, it may speed up your loan application process.
What happens if I don’t pay back my title loan in New Mexico?
If you can’t pay your title loan back by the due date, it’s critical that you contact your lender. They might be able to extend your loan into a new term. If your loan gets extended, you will have to pay any interest you’ve accrued to that point and you will be responsible for any interest and fees on the new loan.
If you don’t pay back your loan, your car can be repossessed and sold. Car title regulations in New Mexico don’t require a right to cure period where you can pay back your loan even though you have defaulted. As soon as you miss your payment, your lender can repossess and sell your car without notice.
How to get a Title Loan with LoanMart
Now that you know how much a title loan can cost in New Mexico, as well as some of the advantages associated with them, you can see they are a great way to pay for an unexpected expense. If you have a qualifying car title in your name, you potentially may be eligible for a car title loan of up to $50,0001. Because LoanMart uses a streamlined sign up process for title loans, you may be able to get your money in less than 24 hours after applying3.
With our easy process, we give you three ways to contact us that make it convenient for you:
- Visit a participating store
- Call us at 1-844-237-5530
- 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!
Take advantage of a car title loan to get your budget back on track. Never let an unexpected expense derail your financial plans again!