Can Older Cars Be Used for Title Loans?
As the name suggests, car title loans work by using your vehicle as collateral for the cash you need. With the average age of vehicles in the United States increasing more and more, chances are that you’ve owned your current vehicle for quite some time. If your car or truck is old, you may be wondering if it can still qualify as collateral for a title loan.1
The good news is that title loans on older cars are approved every day across the country! It doesn’t necessarily matter how old or new your vehicle is – most title loans have flexible approval terms, and are more focused on the value instead of the age of your vehicle. If you’re in a challenging financial situation, have bad credit, and need short-term loan options, inquiring about how to get a title loan can be a great option!1
Learn about how to navigate online title loans for older cars serviced by LoanMart!
What Do Old Cars Have to Do With Title Loans?
It’s best to start with the basics if you’re unfamiliar with car title loans and looking for same day approval. Cars have everything to do with title loans! They are called ‘title loans’ because you technically are using your car’s title as collateral for the funding from a lender.
Car title loans are sometimes also referred to as auto equity loans or pink slip loans. The term pink slip loan is outdated, but it refers to a time when car owners would receive their car titles on pink slips of paper to prevent them from going missing amongst all the other essential documents.
How Do Older Car Title Loans Work?
The process to get an auto title loan is simple, and owners of an older vehicle have to follow the same process and requirements as owners of a newer one. To get a car title loan, borrowers can complete the following process regardless of the age of their vehicle:
- Apply for the loan: Depending on the lender you chose to work with, you can apply online, over the phone, or at a loan store.
- Meet the approval requirements: The key requirements to qualify for a title loan are that your older vehicle meets the lenders value requirements, and that you can provide evidence of your ability to make title loan payments on-time.1 Of course, you must also be of legal age, reside in a state that the lender services, and be the actual owner of the old car or truck that’s on the title loan application.
- Provide the required underwriting documents: With car title loans serviced by LoanMart, you can expect to be asked for a few documents to verify your application information – while the list can slightly differ by state and applicant, expect to provide some form of proof of ID, proof of your address, proof of income, and pictures of your vehicle and vehicle title.
- Sign the loan agreement: Once
- Receive the funds: Upon signing the loan agreement, it’s time to mail in the title to your old car, and receive the loan funds!1
How Old Can Your Car Be With a Title Loan?
Your vehicle’s age by itself is not the key factor for title loan approval!1 What does matter is how much value your car or truck currently holds. Most title loan lenders are primarily interested in the value of the vehicle because its value directly relates to how much security it provides for the repayment of the loan. Older cars may still have significant value! In fact, if you car is so old that it’s even considered a classic car or antique vehicle by now, it can still qualify!
While it is possible that some car title lenders include a maximum vehicle age in their loan criteria, auto title loans serviced by LoanMart don’t have a maximum vehicle year. As long as your old car has sufficient value, it can qualify!1
How Much Cash Can I Get With an Older Vehicle Title Loan?
If approved for a title loan, the cash you may receive depends mostly on the value of your car, your income, and your state of residence. Typically, title loan lenders will look at that combination, and the offered funding will be a percentage of whatever the value of your car is. This can be anywhere from 25%- 75% of a car’s equity.1 If you own an old car and it’s been well-maintained for many years, it could still qualify for a substantial amount. You can always look on Kelly Blue Book to find out more about what your car is currently worth, or even better, start an online application to see what your car may qualify for. Using your aged car’s title as collateral for quick funding through a title loan can potentially get you thousands of dollars!1, 3
What Is The Equity?
How much equity is in your car is an important thing to know! You can figure this out by subtracting how much you currently owe on your vehicle (if at all) from its overall market value. If you’re unsure of how to do that on your own, you can always use this online calculator tool provided by LoanMart to help you out! Fill in a few pieces of information about your vehicle, and it will give you a quick car equity estimate, free of obligation.3
If you have completely paid off your older car and no longer make payments on it, that’s good news! That means that the equity in your vehicle would entirely depend on how much it’s worth on the market as well as its current condition. Equity is the difference between what you owe on the car (if at all) and the market value, so it can be represented by a specific number.
This number is significant because, as previously mentioned, this is what determines the actual loan amounts! Older vehicles kept in mint condition are likely to hold lots of value compared to newer cars that have not been taken care of.
How Much Is My Old Car Worth?
There are several factors that determine how much your old car is worth, besides when it was manufactured. Understanding the criteria behind that can be crucial if you want to get a little more cash through a car title loan.
Make, Model and Style:
Besides the year, the make, model, and style of your vehicle will all be considered when a lender is determining its overall worth. Just because a car is old doesn’t mean it is worthless! There are plenty of vehicles that are older but remain high in demand on the market, which means their popularity can help them retain value. Especially when it comes to trucks, the style or trim can be a major factor and account for several hundred if not thousand dollars in resale value.
Current Condition:
The current condition of your vehicle will also be considered when deciding its value. If you own classic cars and keep them in tip-top shape, the value will probably be high! If you own a regular old car but maintain it well, it could still have a considerable amount of value.
Mileage:
Everyone knows that a car’s mileage will affect its overall value on the used car market. If a newer car has racked up a steep number of miles in a short time, that will hurt its value. A high mileage car is more prone to having transmission and engine issues due to heavy wear and tear. But don’t worry, you could still get a title loan with high mileage on your car!1 Comparatively, if an older car has fewer miles, that could increase its value.
How to Apply Online for Title Loans for Older Cars
Title loans for older cars are intended primarily for people who need cash fast but also may have a bad credit score. They can be a helpful solution for short-term financial issues! You can learn about the competitive interest rates that come with title loans serviced by LoanMart.
One of the best things about an auto title loan serviced by LoanMart is that the inquiry and approval process can take place online! You don’t need to go into a physical title loan office to receive your approved funds.
Traditional financial institutions have a strict loan approval process that is not very flexible or inclusive. They also tend to have lots of additional finance charges, a high annual percentage rate, and the funding time can take weeks. With old car title loans serviced by LoanMart, after you’ve submitted your application online, you could potentially get your funds in as little as 24 hours!3
Final Thoughts About Title Loans on Older Vehicles
Just because you own an older car doesn’t mean you can’t use its value towards getting the funding you need! Nothing is worse than being stuck in a financial emergency and not knowing how to get the cash you need. The best part about online title loans serviced by LoanMart is that you can continue driving your car during the repayment process! If a borrower qualifies and the loan is paid on time, the vehicle can be driven like it is business as usual.
Begin the inquiry process for a title loan on an older car by filling out this inquiry form or calling 855-422-7412 to speak with a title loan agent. You can use your loan proceeds towards many things, like paying off debts, medical bills, or even household repair purposes! You may even receive access to your funds within the same business day.3
Whether you live in Arizona, Idaho, Indiana or one of the many other states serviced by LoanMart, the best place to get a car title loan may just be online!1 If you need additional information about how to apply for title loans for an older car, reach out to a title loan representative today!
