Whether you’re struggling to make ends meet or are short on some cash for an emergency, title loans are the perfect solution to help you out. So, if you own a car are want quick access to money, try holding it out as collateral to get your loan.
While traditional bank loans may also be an option, they can take a lot of time to get processed and approved, not to mention the heaps of paperwork you have to fill out. That is why car title loans are a great amenity for those penny-pinching in a time of need.
But wait! Can you get a car title loan on a financed car? Is it possible to put your car — that hasn’t yet been paid off — on collateral? To find out, continue reading this blog.
Can You Get A Title Loan On A Financed Car?
If you have a car that still has some of its payment remaining, you might want to be careful with it. Although taking out a title loan on a financed car is possible, it isn’t always accepted. That is to say, depending on the lender, they may or may not approve the loan.
However, certain qualifications need to be met to get the title loan, such as the resale value and equity. It is necessary to have equity in your automobile to be eligible for the loan. Moreover, the resale value must match the minimum value requirement set by the lender. This way, you can get the best possible deal out of the bargain.
Calculating The Resale Value of Your Car
Since you have to use your car as collateral, knowing its worth is a crucial aspect. This can only be done by calculating the resale value of the vehicle. From the make to the car’s model, mileage variables, condition, year of production, and even trim level, all aspects play a major role in determining its value.
You can sum up the total expenses with the help of a free online tool. All you will need is the automobile’s VIN (Vehicle Identification Number). However, if you do not have that, basic information can also work.
What Do You Need To Get A Car Title Loan On A Financed Car?
Besides the equity and resale value, taking out a loan on a financed car requires certain documents and verification. For this, you will need to consult your lender and ask them for their eligibility criteria. You can prepare the data needed to finally get your loan based on the merits. Usually, lenders ask for the following information:
- Driver’s License or any other form of identification
- Vehicle’s Original Title
- Car Insurance Proof
- Proof of Income
- Proof of Residence
In short, you might be able to get a title loan on a financed car, but it is still better to consult your lender for more information and qualifications. So, if you’re looking to get a car title loan, make sure to contact Advantage Finance LLC at (281) 410-5337. You can also visit us in Houston at 616 Fm 1960 West #680 Houston, Texas 77090, near the 45 and FM 1960 in Chase Bank Building.