If you have your own car, you can borrow cash even easier than before. How it’s possible? There are companies on the non-bank market that offer a loan secured by your four wheels, i.e. car loans. Check if it pays to use them.
Non-bank companies grant loans based on the assessment of the customer’s creditworthiness. Basically, to borrow money from such an institution, you do not need any liens or third-party sureties. However, it is often because of this that payday loans are not very high. What about people who need more cash? If they only have a car, they can count on a special non-bank loan offer.
Visit online title loan lenders and get money now
Simply put, this is the arrangement between you and the loan company that consists of the lender lending you a certain amount of cash, and if you don’t pay it back in time, he has the right to appropriate your car in return.
There are already several platforms on the network that grant online title loans. Applying for this type of product looks almost the same as for payday loans. First, you need to go to the https://www.paydaynow.net/title-loans/ and then complete the online registration form for an online title loan.
How to take a car loan?
To use this product you must meet the following conditions:
- own a car at the right age (usually not older than 8-10 years),
- be the sole owner of the vehicle
- have a valid technical inspection of the car and liability insurance (some companies also require AC),
- present a valid ID card.
If you meet these requirements, you can apply for a car loan. Before you get any money, you will need to sign a loan agreement as well as a document for the appropriation of the car by the loan company. You will also receive an authorization from the lender to add him as co-owner of the car in the vehicle registration card and card.
With the document of appropriation and authorization from the lender, you go to the appropriate communications office and submit an application to add a loan company (as a co-owner) to the above-mentioned documents. You have seven days from the time the loan agreement is concluded.
Based on the loan agreement, the non-banking company becomes the owner of your car by 51%. At the same time, this document guarantees that after paying off the contract, the lender will transfer all vehicle ownership back to you.
When you have completed all of the above formalities, you will have to send the lender a scan of your vehicle’s new registration certificate, as well as photos of the car (including a photo of the engine with VIN number or windshield with visible registration sticker). The lender must be sure that if you fail to comply with the terms of the contract, he will be able to satisfy his claims with your vehicle.
Car loan repayment
When you return the money you borrow, the car lending company will send you a waiver declaration. With this document, you again have to go to your communications department, where all ownership of the car will be transferred back to your name.
And if for some reason you do not pay the loan on time? In this case, the non-banking company has the right to completely take over your car.
Car loans – a few words about costs
By using this type of product, you probably expect to receive a loan in the amount of the value of your vehicle. Unfortunately, lenders usually do not want to borrow more than 80% of the value of the car taken. What’s more, such loans can be up to several hundred dollars more expensive than, for example, traditional installment loans. So before you use these types of products, take a look at the installment loan ranking and see if you can find the amount you need at a slightly lower price.
Car loans – pros and cons
Like any loan, car security has its pros and cons. So we decided to indicate the three most important features of this product – both the good and the slightly weaker ones.
Advantages of car loans
- the option of borrowing large cash (up to tens of thousands of dollars)
- no need for stable income (the only collateral for the loan is a car)
- quick loan decision
Disadvantages of car loans
- a lot of formalities related to the re-registration of the car (both before and after the loan)
- loss of the vehicle in the event of non-payment of debt
- high costs of this type of loan
The disadvantages of car loans are undoubtedly significant. Therefore, it is worth using such products only when other non-bank companies refused your financial support. Remember that in the event of financial difficulties, the company will not only take your car from you but will put it up for sale. However, if the sale of the vehicle does not get enough funds to cover your debt, the rest will contact you anyway. Keep that in mind when choosing the amount of loan you need.