A Great Way To Secure The Money You Need
If youre in need of a loan fast and have been rejected by the bank and other lenders then a vehicle title loan could be the solution you need. Title loans are short-term easy to pay off loans and therefore are a great option when your income is tight but life is still happening. The convenience of a car title loan will allow you to deal with whatever emergency or financial needs you might have right away.
If youre interested in more information or want to start the process, Loans Canada can help.
What Is A Title Loan
A title loan is an option for borrowing money if you have a low credit score and own a car or another vehicle. You use your car as a promise youll pay the money back. You keep and continue to use your car when you get a title loan. If you dont make your payments you could lose your car.
Title loans are typically short-term, ranging between 3 months and 3 years. They usually have high interest rates and fees. This makes it an expensive way to borrow money.
Title loans are also known as:
- car title loans
- vehicle title loans
- vehicle collateral loans
You can use other types of vehicles that you register in your province or territory to guarantee a title loan, including:
- motorcycles
- trailers
- heavy-duty equipment
Banks and credit unions do not offer title loans. Title loans are available from alternative lenders in stores and online.
You risk losing your car if you dont make your payments. This could make it harder for you to earn money. For example, if you have trouble finding new transportation to get to work.
Obtaining A Car Title
Because your title is the proof that you are the cars rightful owner, youll want to keep it in a safe place. If you have an auto loan, the lender will hold your car title until the loan is paid off. After that, the lender will mail you a copy of your car title.
If you need to get a replacement car title because youve lost the original, the process is fairly straightforward. Most states have a department of motor vehicles or bureau of motor vehicles that handles everything related to automobiles. In some other states, such as Mississippi, car titles are processed through the Department of Revenue. A web search of your states name plus car title will usually get you to the right place to find the instructions.
Depending on your state, you may be able to obtain a replacement car title online, by mail, or in person.
For example, Virginia allows drivers to get a replacement car title either online or in person at a local customer service center. Nevada also provides duplicate car titles by mail or in person at a DMV office.
Requesting a replacement car title online will be the easiest option if your state allows it simply follow the steps on the DMV website. If you have to go in person or apply by mail, then the website should indicate what documents you need to provide. You will generally have to pay a fee, and it may take several weeks for your new title to arrive.
Don’t Miss: What Commision Does A Car Salesman Make
How Does A Car Title Loan Work
Car title loans or auto title loans are secured car loans, with term lengths that can vary between 3 months to 3 years. They typically have high-interest rates, which can legally go as high as 60% . When you take out a car title loan, your lender will assess the value of your car and use it to determine how much to lend to you. Typically lenders will lend up to 50% of your cars value. However, the loan amount can be as little as $100 in some places and run as high as 75% of the KBB resale value of the vehicle.
Once the borrower and lender come to an agreement, a lien is placed on the vehicle and is only lifted once the loan is paid off in full. Moreover, there can be no outstanding liens or outstanding loans on your vehicle.
As a borrower, you can take advantage of the fact that your vehicle is an asset and can use it as collateral to secure the loan you need. Loans against a car title are often easier to be approved for because they are secured, which makes it a great option for credit-constrained individuals.
What Is A Lien?
The lien is what makes a secured car loan, secured. It is a type of security interest that is placed on the vehicle, its meant to help ensure that the borrower will, in fact, make their loan payments on time. If the borrower stops making payments on their loan or cannot afford to pay the loan off in full, the lien can legally be repossessed and then sold so that the lender can recoup the cost of the loan.
Can You Transfer A Title Electronically In Florida
Transferring a car title in Florida is easy. A title transfer can be completed quickly and conveniently online using eTags in case of a private sale or purchase of a vehicle. You wont have to worry about having to wait in line or have to make an appointment if you sell or purchase a vehicle online using eTags. All the appropriate documentation and your applicant certificate for title must be present.
You May Like: Where Can Carcareone Card Be Used
How To Transfer A Car Title With Two Owners
The title transfer process is the same with two owners as it is with one. That is, with one possible exception. Its the difference between or and and.
If or separates the two owners names, either owner can legally sign the title transfer. If and separates the two names, the signatures of both owners are required for the title transfer.
Vehicle Titled In The Name Of A Business
If the motor vehicle is titled in the name of a business, government entity, leasing company, lienholder or organization, in addition to acceptable identification, an original business card of the agent or authorization on company letterhead matching the identification of the employee or agent is required. This authorization letter must be signed by someone other than the agent signing for the applicant.
Recommended Reading: Is Duracell Car Battery Good
How To Transfer A Car Title To A Family Member
Although it makes sense that transferring title to a family member would somehow be easier, the process is the same as with an outside buyer. This is so, whether the title is clear or if there is a lienholder.
If its clear, fill out the required information on the current title and sign where appropriate. If the state requires a bill of sale, it must be completed, even in the case of a gift. The family member then applies for a new title.
If there is a lien, the lender will require payment before clearing the lien.
Paying Back Your Title Loan
Most lenders require pre-authorized debits to pay back the loan. This means money will automatically be taken from your bank account for each payment. Make sure to ask your lender when your payments will be and get this information in writing.
To be sure that you can make your loan payments on time:
- keep enough money in your account to avoid paying extra fees and non-sufficient funds fees from your bank or credit union
- apply for overdraft protection to help you avoid declined transfers and NSF fees
Read Also: Columbo Car Make
How Do I Get My Electronic Title In Florida
Visit our website at www to find out what a variety of titles like ours can bring in terms of benefits. flhsmv. You can print your electronic title by going to Handle It Online in the Office of Administration, online registration, and select Print Your Electronic Title. A Florida dealership will ask you for a paper title before determining whether you wish to trade your vehicle with them.
To Apply For A Duplicate Title You Must Submit:
Read Also: Hyundai Equus Bass 770
What Happens If Your Car Is In An Accident Or Stolen
If your car is in an accident or stolen you are still responsible for paying back your title loan.
Your insurance company will review your claim and may decide to settle the claim directly with your lender. Part or all of the insurance claim money may go directly to the title loan lender.
If your car is a write-off or stolen:
- your insurance company may directly pay your lender the value that your car could be sold for before it was in the accident or stolen, known as the market value of your car
- if the market value doesnt cover your loan, you will be responsible for paying the lender the rest of the loan amount
In some provinces and territories the lender could sue you for any money left owing after the claim has been settled if you dont pay the rest of the loan amount.
Lost Or Duplicate Title
If youve lost or misplaced the certificate of title that you got from the seller or former lienholder, you can apply for a new one at your local DMV office or transportation agency. What youll need to get a replacement car title can vary by state, but heres an example.
- Sign it
- Have the application notarized, if required by your state
- If your state doesnt require notarization, youll usually need to include proof of identity like your state drivers license
- Submit your application by mail, in person or online, depending on your states requirements
- Pay the application fee
Also Check: Florida Dmv Replacement Title
Benefits Of A Car Title Loan Or An Auto Title Loan
There are several benefits to this type of financing if the borrower doesnt abuse the option.
- Theyre fast Loan approvals for auto title loans can take as little as 15 minutes.
- Theyre convenient If you have bad credit, you dont have to worry, auto title lenders accept all types of borrowers. So long as you have your car title, theres shouldnt be much hassle.
- They dont require a down payment or a credit check Unlike a car loan, an auto title loan doesnt require a down payment, nor a credit check due to the security it provides. The value of your vehicle allows you to gain access to the funding you might not have been able to get approved for before.
- Lower interest rate Because youre providing collateral in the form of a vehicle, youll often be able to qualify for a lower and more affordable interest rate than a payday loan.
- Still own your car For the duration of the loan, youll be able to use it just as you did before. However, your lender will have a temporary hold of your title until you repay the debt.
Transferring A Title And Registration
To transfer a title and registration, you must have these items:
- A signed and notarized vehicle title
- A lien release, if applicable
- All applicable title and registration fees
- Any other documents that apply
If there is a lien on the vehicle that has not been paid off, written permission from the lienholder/lender will be required to add or delete a name.
Recommended Reading: Who Accepts Carcareone Card
Disadvantages Of A Car Title Loan
The disadvantages are less than they used to be since provinces have passed some legislative reforms. Some provinces have placed a cap on the amount of interest a title loan company can charge. There is also legislation as to the maximum loan amount in some jurisdictions, as well as the number of these loans a consumer can take out within a year. The disadvantages mainly have to do with not understanding the terms of the contract, not making payments in a timely manner, or taking on a loan that you cant realistically afford. Additionally, you should watch out for:
- Collateral Auto title loans are secured car loans, meaning if you miss any payments, your lender can seize your car and sell it in an effort to recoup payments.
- High-Interest Rates While these car loan are secured, they often have a higher interest rate than other secured loans because theyre intended for those with rocky finances.
- High Fees They also charge numerous fees that can quickly add to the cost of the loan. Some common ones include administrative fees, loan origination fees, vehicle inspection fees and more.
Learn more about your rights and responsibilities as a borrower.
Additional Reading
What Is A Florida Car Registration
Car registration documentation serves as evidence of vehicle owners paying registration taxes and fees. When motorists get car registration in Florida, they receive a registration certificate, validation decal and metal license plates. Drivers may apply for new car registration certificates, license plates and validation decals when they apply for a title, but they may apply for both documents separately if they prefer.
However, licensed Florida drivers cannot operate their new or used motor vehicle until they obtain titling and registration materials. To apply for FL vehicle registration documentation and a title certificate simultaneously, vehicle owners must complete an Application for Certificate of Title and submit the auto registration form to their county tax collectors office or license plate agency, along with proof of car ownership and automobile insurance.
Don’t Miss: Remove Hail Dents From Hood
What Documents Do You Need For An Auto Title Loan
An auto title loan is pretty cut and dried. There is usually any number of companies that provide loans against a car title in your town and many now do business online. You simply go in and fill out a short loan application. Although there will be some differences depending on which lender you chose to work with, most will require:
- Personal Identification This includes documents to verify your name, address, and phone number. Lenders usually accept a drivers license, passports or some other government-issued photo ID.
- Financial Details Some auto title lenders may require proof of income and employment. This can include bank statements or pay stubs.
- Vehicle Title Documents One of the most important documents you will need to bring is your car title document. This is necessary to prove that you are the legal owner of the car.
- Car Insurance Lenders require that you have insurance on your car, so you may need to purchase it and provide proof.
- Vehicle Details Youll need to provide information regarding your cars make, model, year of the car and mileage.
- Vehicle Inspection Your lender may also require a car appraisal to verify its condition and value.
Thinking of trading in your car? Find out if you should trade-in your used vehicle or not.
How To File For A Lost Title
To replace a lost title, check out this resource from Finance and Insurance Tools. It provides the links to state applications for replacement titles plus the cost. According to the F& I, the cost will range from $2 to 95, depending on the state where you live.
RELATED STORIES: How to Sell a Car Without a Title
You May Like: What Does The First Car Look Like
How To Transfer A Car Title
Every state has its own rules concerning car titles. Your life will probably be much easier, in the long run, to keep up with changes as they happen. That means getting an updated title when relocating to a new state or when the vehicle changes hands. Thats true even when the vehicle moves from one family member to another.
What Should It Look Like
Looking every bit like a cars birth certificate, the title will include the seal of the issuing state. Although the information displayed on a title varies by state, generally, every title includes certain facts.
- Identifying information: VIN, make, model, year, and color
- Owners name and address
- Title issue date: The date the vehicle got purchased
- Odometer: Reading and when it took place
- Outstanding liens: Usually the financing lender
- Signatures: Buyer, seller, and representative of the state
A seller scamming the system isnt unheard of. Its up to you to ensure the title the seller presents is indeed a legal title. There are some things you can look for and do to avoid being duped.
- Double-check the titles issuing state. If its not the state you are in, its likely not a valid title.
- Verify the VIN by obtaining a vehicle history report from an online provider like AutoCheck. It will cost $25 for a one-time report, but its well worth it. Reports provide detailed information, including past car owners, accident history, and maintenance records.
- Inspect the titles issue date. If its relatively recent, it could be forged.
- Check for a watermark. The absence of a watermark is a sign the title is a copy.
- Look for fuzzy or unclear printing in the document. These are indications the document is a copy.
Don’t Miss: How To Protect Car From Hail If No Garage
