0
In danger of being too vague, basically an auto title loan uses your car for collateral for the loan. This means if you default (miss one or more payments) on the loan, the company you borrowed money from could repossess your car. Be VERY careful if/when you get an auto title loan. Although they may let you "keep your car" (as a lot advertise as a "perk" to getting a loan with them) they may have very strict standards (i.e. repossessing the car if you are just one day late on a payment).
Buyer beware...
Such financial transactions only apply to a "clear title". It is illegal to attempt to procure a loan using a vehicle title that has a lien holder indicated.
Read the fine print. Some Companies will apply an early payment to principal and not to the upcoming payment. Example: Your payment is due on the 2nd of the month. You make a payment on the 1st. The the payment on the 1st will be applied to principal. You still have a payment due on the 2nd, and on the 3rd they may come to repossess your car. So, make a payment in person every month, and read all the fine print before getting this type of loan. Check with your BANK or Credit Union. Some Banks/Credit Unions also provide a title loan but with conventional rules.
Personal Experience:
Years ago I looked at getting a title loan. I read the fine print and was shocked at what I was reading. When I asked the lady who wanted to give me the loan how can you legally get away with this I was told "OUR MONEY OUR RULES".....My response was "My Car My Title" and walked out!
Wiki User
∙ 9y ago
Add your answer:
Earn +20 pts
What happens if I don't repay an auto title loan?
You will lose the car if the Auto title loan is not paid. The lapse in repayment can result in reposession of the car.
Where can I find out more about automobile title loans?
Automobile title loans is a good thing to use when in need of an auto car loan for yourself. To learn more about this information on auto loan you can check www.pinksliploan.com/Vehicle-Title-Loan.
What are some disadvantages of an auto title loan?
Auto title loans are risky at best. Interest rates are very high, it may become impossible to pay off the loan. A good article about the disadvantages of an auto title loan can be found here: http://articles.cnn.com/2008-10-08/living/aa.car.title.loans_1_car-title-loan-interest-rates-responsible-lending-for-title-loans?_s=PM:LIVING
If you cosigned for an auto loan and your name is on the title do you have a right to the auto?
Absolutely, name exists on title therefore you are part owner.
What is the difference between a normal auto loan and a title auto loan?
With a title auto loan, your vehicle has already been paid off and you are using it as collateral for a new loan sometimes referred to as a cash advance. A normal auto loan is dedicated to the new or used vehicle and the funds normally are not used for anything else unless financed within the loan ie. warranty.
Does national city bank offer auto title loans?
if you are looking for a loan go to 1 stop auto title loans they offer the type of short term loan you are looking for.
What are the requirements to take out a title auto loan?
The requirements for taking out a title auto loan are, being the age of 18 or older, the auto vehicle must not have financial dues, and must provide valid proof of vehicle ownership.
Can auto title loan company go to a different state than the loan t?
Certainly.
When getting an auto loan, is the title different in California than paying cash for a car?
Yes, taking out an auto loan means that there is a lienholder on the title of the vehicle. Once the loan is paid off, the lienholder is removed and it is owned free and clear.
If there are two owners on a auto title and only one signs for a auto title loan and dies is the other person responsible for paying balance of loan?
The short answer is yes, if you want to keep the car. Otherwise the loan will go into default and it will be repossessed. If you did not sign for the loan, it will not affect your credit.
How do you get a good rate on an auto title loan?
Don't get an Auto Title loan. These loans are not made to give anyone a good rate. In most cases people end up paying more interest then they did for their car.
Does anyone offer a car equity loan online?
The biggest benefit to getting a car title loan is that it enables the borrower to get ... The best car title loan companies are those that offer quick cash, low rates ... Since there are no credit checks, anyone can get an auto title loan, as long ... Carbuckscorp.com is another online auto title lender out there with high success rates
