How The Auto Title Loan Process Works

Do you have an expense that came up suddenly, and you do not have the cash on hand to cover it? If so, you're likely looking for ways that you can quickly get the money that you need. If you have a vehicle that is fully paid off, you can use an auto title loan to borrow money. Here is what you need to know about the process of getting an auto title loan.

Bring The Proper Documentation

You will want to visit a lender in your area that specializes in auto title loans and bring all of the proper documentation to get things started. This includes a photo ID, the vehicle you want to use for your auto title loan, and the actual title. You'll be told to fill out an application to get the process started if you bought everything that you need.

Get The Vehicle Appraised 

The next step will be for the lender to appraise your vehicle to let you know how much it is worth. This is done by using a variety of different factors, such as the make and model, the mileage on the vehicle, the condition that it is in, and what sort of features the car has that make it valuable. You'll then be told how much money you'll be able to borrow based on the vehicle's value.

Discuss Payments And Interest 

If you've been approved for the loan, you will then discuss with the lender how you will pay back the money that you borrow. This involves setting up a payment plan for how much will be owed each month, and determining how much interest will be paid over the life of the loan. It is possible to arrange different terms of the loan, to lower how much you'll pay in interest. 

Get The Money You Need

If the conditions of the loan seem favorable to you, then the next step will be to get the money you need for the loan. This often happens the very same day, since there is very little time needed to approve an auto title loan. That is because the loan is being secured with the car itself, and there is collateral that the lender can collect if you default on the loan. The best part of the auto title loan process is that you'll also drive away with your vehicle. There is no need to leave it with the lender as collateral until the loan is paid back.