What is a Car Title Loan Vehicle Inspection?

Auto title loans are cash loans that are primarily based on the value of the borrower’s vehicle, and the borrower’s income.¹ Since the car or truck that is used to apply for the loan is one of the most important factors for loan approval, most car title loan providers require that a vehicle inspection is completed before the loan is finalized.

There are two types of inspections that are commonly used in the title loan process, depending on the lender you work with: physical or in-store title loan inspections or online inspections.

What Are the Types of Auto Title Loan Inspections?

Physical Title Loan Inspections

Online Title Loan Inspections

Online title loans can come without the requirement to drive to a loan store to complete an inspection. Instead, they may rely on pictures, videos, or a combination thereof, depending on the lender you end up working with. The photos or videos can usually be uploaded online, or sent in electronically via email or text message. Some lenders may also offer a mobile app that borrowers can use to upload the pictures, or even require that borrowers download an app that allows them to confirm that the pictures of video are in fact authentic and recent.

Online inspections will typically cover the same aspects that a physical inspection covers. In order to enhance the reliability of the online inspection, some car title loan providers may also run additional database checks such as Carfax or AutoCheck, in order to confirm if a vehicle’s history includes potential issues such as major accidents, or even a salvage title.

What Are The Components of a Title Loan Vehicle Inspection?

Whether the inspection is completed online or physically, title loan inspections can generally include the following components:

Exterior Inspection

The exterior of a vehicle is usually the first part of the inspection, and either entails a walk-around of the vehicle at the store, or pictures of all sides of the vehicle in the case of an online inspection. The point of the exterior inspection is to confirm the condition of the outside of the vehicle, and will include checks for major dents, scratches, and other issues concerning the body of the car that could significantly impact its value.

Interior Inspection

An interior inspection is normally required as well. Besides making sure that the interior of the car doesn’t show damage beyond the normal wear and tear, the interior inspection includes verification of the current odometer reading, and validation of the vehicle identification number (VIN).

Mechanical Inspection

Depending on the title loan provider you work with, the inspection may also include a basic mechanical inspection. Of course, loan store employees aren’t car mechanics and wouldn’t complete a 40-point vehicle checkup. However, in the case of a physical inspection, the borrower may be asked to briefly turn on the engine to confirm it’s in working condition. In the case of online inspections, the lender may ask for a video of the car with running engine. In rare circumstances, lenders may also request to see an On-Board Diagnostic scan (OBD) to confirm the vehicle has no major emission issues.

When Will the Vehicle Inspection Be Requested?

The timing of the inspection in the loan process depends on the title loan provider you work with. For vehicle-secured loans that are made at a loan store, the inspection is usually done right when the customer applies for the loan.

With online title loans, the required photos or videos to complete the online inspection may be requested as part of the initial application, or may only be requested once the applicant has been initially approved.¹

How Can I Get a Car Title Loan Vehicle Inspection Online?

In order to get your car inspected online when getting a title loan, you simply need to find a company that offers title loans that can be completed online. No matter what company you’re researching, their website should mention how the inspection works, and what documents are required to get a title loan. If you’re in doubt, you should also be able to call them to confirm.

As a rule of thumb, companies that operate title loan stores tend to prefer physical inspections as they are paying rent and store employee salaries to maintain their locations.

Companies that exclusively market title loans online and don’t operate loan stores tend to offer online inspections, although some might also partner with third party companies that operate stores to offer physical inspections.

One of the benefits of choosing title loans serviced by LoanMart is the ability to complete your required inspection online.

What Are the Benefits of an Online Vehicle Inspection Compared to an Appraisal at a Loan Store?

With digital lending projected to grow at an annual rate of 26%, it’s no surprise that many vehicle title loan borrowers prefer an online loan experience over having to drive to a loan store. Some of the key benefits that may come with completing a title loan appraisal online include:

1. Online Convenience: Physical inspections will need to be completed during the hours of operation of the loan store, which may not be convenient given your schedule. The required pictures or videos for an online inspection on the other hand can be taken whenever it’s convenient for you.
2. Efficiency: Physical inspections can take longer to complete, and therefore be less efficient. The time required can include scheduling the appraisal, driving to the loan store, and potentially even waiting for a store clerk to be free to assist you. Online inspections do not require your time for scheduling or driving somewhere.
3. Safety: Loan stores aren’t always located in the best and safest neighborhoods and criminals know that they have a decent amount of cash on hand. You might have seen news about armed robberies of title loan locations and other money-service businesses. While the chance of getting caught in one of these is low, using an online inspection completely eliminates that risk.
4. Privacy: Financial matters are sensitive matters, and you may prefer to keep it that way. How much you make or whether you need a loan is not a topic you may wish to discuss with everybody. When it comes to a physical inspection at a title loan store, your privacy is reduced by the very fact that you are personally at the location – everyone around can understand that you are in need of a bad credit loan. If on the other hand you merely take a few pictures of your vehicle to complete an online inspection, you can choose to take those pictures in private, and nobody will know why you are taking the pictures!
5. Cost: Depending on how far away the nearest title loan store is, having to drive there could cost you real money, in addition to your time. According to the IRS mileage rate, driving one mile in your car could cost around 67 cents on average. So if your title loan inspection requires a 30 mile drive, that could cost you around $20.00.

What is Required for an Online Title Loan Inspection for Loans Serviced by LoanMart?

With auto-secured loans serviced by LoanMart, you can easily complete the required vehicle inspection online. The requirements may slightly change over time as technology improves – as of right now, you can expect to only need the following:

• Pictures of all sides of your vehicle (front, back, driver side, passenger side)
• Picture of the odometer
• Picture of the VIN

The vehicle pictures can be conveniently uploaded using the Document Upload feature on the website, or you can send them to a loan officer via email or text message.

What Happens After the Vehicle Inspection?

Once your online inspection pictures are received, a loan officer will review them and confirm the key items of your title loan application. Besides verifying that your car is in satisfactory condition for a title loan serviced by LoanMart, your vehicle’s identification number, year, make, model and current mileage will be confirmed. If everything matches with the information submitted on your initial loan application, your loan will continue to be processed.¹

If there are discrepancies or issues with your vehicle’s condition, the loan application will be adjusted accordingly, which may result in the estimated value of your vehicle being adjusted. This, in turn, could result in a revision to your title loan approval amount.¹

Conclusion

Auto title loan inspections are an important part of the title loan process, no matter if you choose a store-based provider or online loan option. With title loans serviced by LoanMart, borrowers can take advantage of the convenience that an online inspection offers, and don’t need to worry about driving to a store for a physical inspection.

Apply online for a car title loan serviced by LoanMart, or call us at (800)562-6627 to get started!