Wondering if you can get that extra cash you need for that business idea of yours? Despite not having any significant collateral that might convince the bank into lending you the money, you can still qualify for a loan, with your car. If you think a financed car will be a hurdle for you getting that loan, worry no more. A lot of people ask the question, ‘Can you get a title loan on a financed car?’ Well, the answer is here and it’s good news for all you aspiring entrepreneurs out there.
In short, yes, you can get a title loan on a financed car. With more and more banks offering people the advantage of getting a loan using a financed car as a collateral, this question has made its way into reality. Lending authorities like MontanaCapital and LoanMart can and will issue car title loans on a financed vehicle, making your way to the financial heaven smooth and uneventful.
However, do bear in mind that you need to accept stringent rules and conditions if you want to get that loan approved. Since the bank will have to make do with a collateral which will remain in your physical possession and will already be financed from another bank (usually), therefore, it has to lay down a framework of well, unpleasant conditions and stringent terms to make sure the borrower does not default on their payments.
However, that’s not to say that to get a title loan on a financed car, you’ll be doxed by the bank; actually, the process is quite easy, simple and fast. Provided that the complete documentation is provided, getting a title loan on a financed car is pretty quick, with most requests being processed within a day and the funds dispatched in two to three days. Needless to say, getting a title loan on a financed car is now easier than ever and can mean the difference between you starting your dream business or staying at the middle of the food chain.
How to get a title loan on a financed car?
Well, the first thing you need to know is that whether you have a financed car or a paid-for car, the steps and the majority of the process will be the same. After all, the loan you’re applying for is literally a car title loan; the fact that the vehicle is financed plays in a little later in the application process.
The first step would be to apply either online or at a title loan location or bank closest to you. Next, you will submit the application and wait for the lender’s decision. In some cases, you will need to schedule a vehicle inspection or send photos of the car prior to getting the loan approval.
Once the loan application has been approved, you will get your money in as little as an hour. As a condition of the loan, the lender will now have a lien on your title. This means that it may have the right to seize your car should you fail to cover the repayments or default on your loans altogether. It may also be true even if you have made payments on your original car loan.
How much amount will be paid in lieu of the car title loan?
Once approved, as stated above, the amount will be transferred to your account or handed to you in cash within an hour. However, the amount varies, depending on the vehicle itself and the amount you already owe in lieu of the finance repayment. For example, if the car is relatively new, does not have a junk or salvage title and has less amount of payments left in lieu of the financing, well, you might be able to guarantee a receivable that matches your requirement. Because usually, what banks do is, they will actually lend you money to pay off the existing lien on your vehicle. You can then keep whatever is left over to use however you see fit. Let’s say that you were approved for a $5000 title loan using the title for a vehicle that you owe $2000 on. Instead of receiving the $5000, you would receive $3000 with the rest of the money going to your original lender.
Typically, you would then repay the entire amount of the loan under the terms that you agreed to with the title lender. The potential upside is that your vehicle is now paid off, which means that you own it outright. After you repay the title loan, there is no more debt on the vehicle and you can do whatever you want with it. In fact, it may be possible to apply for another loan using the same vehicle.
What are the requirements for getting a title loan on a financed car?
Car title loans are secured loans. While traditional loans require applicants to pass a credit check prior to approval, all you need to get a car title loan is a title to a car you own.
Each state has its own laws regarding car title loans, with some states outlawing them altogether. That said, the basic requirements for getting an auto title loan are the same in all the states that allow vehicle title loans. These are:
- You must own a car.
- You must be at least 18 years old.
- You must be a legal resident of the U.S.A.
- You must have verifiable income.
Car Title Requirements
The title to the car you have must be in your own name. Additionally, the car it belongs to must be completely paid off. In most cases, the title must be clean but you may be able to qualify for salvage title loans if your car is in excellent condition and the office you apply with specializes in loans on salvage titles. You may also be able to qualify for an auto title loan if you still have one or two payments left on your car.
With title loans, will you still own the car?
Only physically. It does not matter whether its financed or paid off, the car will be yours physically. You can drive it fast, slow, race it or hoon it. The title, however, will remain with the bank that has lent you a title loan on a financed car. While the lender puts a lien on the title, you still get to drive the car and otherwise use it as you would like. It may even be possible to trade or sell the vehicle assuming that it generates enough cash to pay back the loan prior to doing so. Anyone who may be interested in selling or trading a vehicle with a title loan lien on it may benefit from speaking to their lender first.
Is it possible to refinance a title loan on a financed car?
It may be unrealistic to expect a person to repay $2500 or $3000 in a matter of 30 days. The good news about title loans is that it may be possible to refinance them to help keep up with the payments. While this may have no bearing on your credit score, making timely payments can ensure that you retain ownership of your car.
If you are in need of money, a title loan may be an effective way to get it. However, the application process may be slightly more complex if you don’t have a clear title on your vehicle. The good news is that it may be possible to get a loan using your title anyway. Regardless of how or why you are borrowing money, make sure that you can pay it back in a timely manner to reduce the odds of losing your car or other property.