New Mexico has no laws capping the amount of interest you can be charged on a car title loan. However, being charged 25% per month is not unusual. That said, there are a number of other regulations and factors that can influence the amount of money you can get for a title loan.
What are the car title loan regulations in New Mexico?
Title loans in New Mexico are similar to title loans in other states. Borrowers use a qualifying car title in their name to secure a loan. Car title loans have many of the same advantages of other short-term loans, such as1:
- Competitive loan terms – Because title loans are secured, people are often able to get access to more money, at a better interest rate, for a longer repayment period
- No lengthy application process – you may be able to get the money in as little as one business day3
- Bad credit isn’t a problem – Lenders are more interested in the value of your car and your ability to repay your loan than your credit history
Lenders are often able to give borrowers better rates when they are borrowing with a secured loan, versus an unsecured loan like a payday loan. This is because if borrowers default on their loans, lenders have the opportunity to get their money back by repossessing and selling the borrower’s collateral.
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 may be able to borrow up to $50,000 with a car title loan in New Mexico1. That said, there are a number of factors that influence how much you will be able to borrow:
- Value of your vehicle
- Loan Terms
The higher your income, the more money you may be able to borrow1. That said, you can’t borrow more than the value of your car, and often the amount you will be offered is closer to 40%.
What do I need to get a Title Loan?
There are only a couple of things you’ll need to put together for a title loan:
- Qualifying title for the vehicle
- Government-Issued I.D. (Driver’s License, State I.D., Passport, etc.)
- Proof of Income
- Proof of residence
- Photos of the front, back, and sides of vehicle
What is considered proof of income for a Title Loan in New Mexico?
Some people think you need a paystub to show proof of income for a car title loan. You can actually show proof of income a number of different ways, for example:
- Settlement/Court-Ordered Award
- Workers’ Compensation
- Social Security
How do I get a copy of my vehicle’s title?
You may be able to go to your local department of motor vehicles (“DMV”) for a duplicate copy of your car title. Some DMVs are capable of expediting your duplicate title request. Depending on the circumstances, LoanMart may be able to direct you to the nearest DMV capable of assisting you, or even help you directly with getting your expedited car title. Adding LoanMart as a lienholder when you get your duplicate car title may reduce the time it takes for your title loan to be processed.
What happens if I don’t pay back my title loan in New Mexico?
If you find that you cannot pay back your title loan, you should contact your lender as soon as possible. You may be able to roll your balance into a new loan and extend the length of your loan. When you renew your loan, you will need to pay any interest you owe to that point. You will then be responsible for any new interest or fees associated with the new loan term.
If you fail to pay your loan back, lenders can repossess your car. Then they can sell it. New Mexico does not require lenders to give borrowers a grace period during which they can pay the balance of their loan. As soon as a borrower goes into default, their lender can repossess and sell their car without notice.
How to get a Title Loan with LoanMart
Now that you know more about title loan interest caps, and title loans in general, in New Mexico, you can see there are a great option when you need money to cover an emergency expense. If you have a clear-and-free car title in your name, you potentially qualify for a car title loan of up to $50,0001. Take advantage of LoanMart’s streamlined application process for title loans, and it’s possible you’ll be able to get your funds in under 24 hours3.
With our easy process, we give you three ways to contact us that make it convenient for you:
- Visit a participating LoanMart store
- Call us at 1-877-787-4923
- 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!
It can be stressful holding an unexpected bill and not knowing how you’ll pay for it. Apply for a title loan today and get your budget back on track1.