For modern adults, buying a vehicle is a major life decision, or at least a significant financial one, and there are many different ways to go about it. Some choose to buy a new vehicle, others buy them used, and a vehicle may be chosen for its price, its features, its age, or even its function. A mother of three would get more use out an SUV then a compact sports car, for example. And for most buyers, paying the whole price up front is not possible, so instead, a buyer may try to qualify for a car loan and buy off the car in installments, after a down payment is made and the paperwork is signed. A vehicle title loan is most buyers’ path to a new car, and loan money can make a car’s price tag manageable. How can one get a title loan fast? Are online loans a good idea? There are a few options out there for car buyers.
Vehicle Title Loans by the Numbers
Someone looking to get a vehicle title loan is in good company. In fact, a total of 107 million Americans are paying off an auto loan, an all-time high. What is more, the total use debt balance is massive, and in the year 2017, auto loan debt managed to make up 9.03% of that debt balance. And among car owners, 44%, almost half, are currently relying on auto loans to pay for their vehicles, and while these loans can range anywhere from $50 to $200,000, the average has been determined to be closer to $7,576. As of now, the average auto loan title comes to $1,000, and the borrower’s car title secures that money. Finally, among all reasons Americans take out loans, car payments rank first at 31%, followed by bills at 26%, and personal emergencies at 21%. So, obtaining a vehicle title loan or any other car loan is central to having a vehicle one can drive.
Getting a Vehicle Title Loan
According to Nerd Wallet, a hopeful borrower will approach the lender with the car and its title, and apply for the loan. Obtaining that loan can be a quick process, but until the loan (average: $1,000) is paid off, the lender will hold on to the car’s title as collateral for the debt. Car title lenders often do not have the same requirements for borrowers that other lenders have, such as knowing the borrower’s credit score or yearly income. It has been found that sometimes, borrowers for car title loans at loan places will take out subsequent loans, and doing so incurs fees, so prospective borrowers should bear this in mind and be prepared. The APR (annual percentage rate) will be high, often 260% or higher, so prospective borrowers should be ready for that, too. The risk is that if the borrower does not pay off his/her loan, the car may end up repossessed, and data from Consumer Financial Protection Bureau suggests that some 20% of borrowers end up in that situation. It is clear, then, that a borrower’s personal finances should be ready for the strict requirements of a vehicle title loan.
Should a person have interest in finding and getting a vehicle title loan, he or she can use an Internet search to find one, based on the city or state that they live in. A search query for “Vehicle registration loans AZ” may work for those living in Arizona cities like Flagstaff or Phoenix, and someone in Boston can search “vehicle title loans MA” to find such a place in their home state. Directions to such loan locations can be obtained, as well as their hours of operations.