Car inspections may be tedious, but they are necessary. Car inspections are meant to protect the lender. The lender has to be sure that there is not any mechanical or cosmetic damage. Mechanical and cosmetic damage is important for the lender to investigate because those two factors help to determine the value of the vehicle.
When the lenders inspect the vehicle, they are looking for value. This process is necessary because an auto title loan uses the borrower’s car title to secure the loan, so in the unlikely event that the borrower is unable to repay the loan, the car’s value will be used to cover the loan.
An interior inspection is when the lender inspects the quality of the interior of the vehicle. They inspect the car’s mileage and the material that make up the inside of the vehicle. Why is this important? This is important because its worth is determined by its market value: supply and demand.
Demand for cars is always going to be high; someone will always need a car, but as we know, every car is not the same. Some cars cost the buyer more money than the car is worth, and the auto title lender does not want to be that buyer.
There is no shortage of vehicles on the road, but there are not many cars that hold great value. The car that one brings to receive an auto title loan needs to be evaluated to determine its level of value: how much they believe that they could sell it for.
This process can help the borrower as well as the lender, for the lender may find that the car is worth more than the borrower originally determined. This means that the borrower is possibly eligible for a loan of higher value.
It protects the lender from accepting a car for a higher value than they would receive in return for the vehicle, and it also prevents the lender from giving the borrower more debt than he or she can afford.
When the lender inspects the exterior of the vehicle, they are looking for cosmetic damage. Prior to them selling the car to a business or an auction, they may decide that they would like to repair the damages to the vehicle. To repair the damages that vehicle has, one must first determine the cost to repair that vehicle.
The cost to fix cosmetic damage on a vehicle, may have to be deducted from the car’s worth. Prior to seeking an auto title loan, if you can afford to do so, attempt to have the minor cosmetic repairs fixed prior to having it inspected and filling out the application. Doing this may add hundreds, if not thousands, depending on the vehicle, of dollars in value to your vehicle: meaning that the lender may approve you for the additional funds you need.
How do I Start the Process
To start the process of applying for an auto title loan, one must first fill out the application. With LoanMart, the application process is simple, and it can be completed from the comfort of your home or office.
The first step of the application process is to have proper identification. One must have some form of government-issued photo identification and his or her social security number. This is to protect everyone. Fraud can be very costly for the borrower, the lender, and the potential victim. It is in everyone’s best interest to be sure the person that has taken on the obligation of an auto title loan bears the responsibility of such loan.
You will need your car’s title if you plan on receiving or applying for an auto title loan with LoanMart. This is essential because the car has to be in the name of the person who is taking out the loan. Also, a title is necessary because LoanMart will need to place a lien on your vehicle to ensure repayment1.
What is a lien? A lien is debt that is placed on a property. It can be placed on the property for a multitude of reasons, but in this article we will focus on loans. They can be removed by paying the debt that is owed on the vehicle or the lien holder can lift the lien at his or her own discretion.
Once a lien has been placed on a vehicle, the lien holder has the right to repossess and/or liquidate the property should the borrower default on their loan. This protects both the borrower and the lender, for the lender, if the debt is not repaid, will sustain a hefty loss that may only be recovered in a lawsuit or by a debt collection agency.
And, even if those remedies are taken, there is no guarantee that the lender will receive his or repayment is full.
Why should I consider an Auto Title Loan from LoanMart
A title loan can be used for a multitude of reasons. One reason is simple; you need money. You may need money for bills or a business venture, and you may not have the capital to do so. Auto title loans approval and deposits are some of the fastest you can have.
Bad credit—today, many people suffer from bad credit. This can prevent you from car and home purchases, even credit cards. This can put a tremendous strain on the borrower. Auto title loans rely very little on credit, so at LoanMart your credit is your car and your income. At the end of the day, auto title loans can be a great resource and life saver.