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Title Loans For Older Cars Title loans are a convenient loan option because all you need to get one is a car, but many consumers don’t fully understand how they work. If you’re wondering what are title loans or if title loans for older cars are available, this guide will have you covered. How Title […]

Title Loans For Older Cars

Title loans are a convenient loan option because all you need to get one is a car, but many consumers don’t fully understand how they work. If you’re wondering what are title loans or if title loans for older cars are available, this guide will have you covered.

How Title Loans Work

Title loans fall under the category of secured loans, meaning they have a piece of your property attached to them in collateral. Your car is that collateral and its value will determine both whether the lender approves or denies your loan application and how much the lender is willing to issue you as a loan.

It’s important to note that you’ll still have your car during your title loan’s term. You don’t need to worry about being stuck without any transportation, because the lender will just keep your car title as you pay the loan back. After you’re done repaying it, you’ll get the title back right away.

One benefit of a title loan is that it doesn’t have all the stringent application requirements of more traditional loans. In most states, you only need these things to get a title loan:

  • A form of government-issued ID
  • A car that you own
  • That car’s title

There are a couple states where state law requires the lender to also get proof of your income. This could be in the form of a paystub, banking statements or another type of document. Most states don’t have this requirement, though.

The reason you need to bring your car title is to give it to the lender before you get the loan, and you show the lender your ID to verify your age. Federal law prohibits you from getting a title loan if you’re under 18 years of age. As far as your car is concerned, the lender needs to see it to make sure you have possession of it and to figure out its value.

Let’s look at how the lender assesses a car’s value to see if title loans for older cars work any differently.

Is There Anything Different About Title Loans for Older Cars?

There’s a simple process the lender will go through when calculating your car’s current market value. They will typically proceed as follows:

  1. Entering your car’s details, which include its year, make, model, body style and estimated mileage, into a vehicle value guide, such as Kelley Blue Book.
  2. Performing a brief inspection of the car to determine its condition.
  3. Comparing the condition of the car to the corresponding value listed for that condition in the vehicle value guide.

After the lender has put a value on your car, they can decide how much they’re willing to loan you. This will be a portion of your car’s value, but not full value, because the lender wants a bit of a buffer in case you default on the loan and they need to repossess and sell your car. For title loans, it’s common for lenders to issue loans for about 30 to 50 percent of the car’s value, although this varies depending on the lender. There may also be state limits in place for title loan amounts.

There are only two ways that the age of your car can affect getting a title loan. The first is if it’s old enough that it doesn’t have much value left, in which case you won’t be able to borrow much through a title loan.

The other issue would be if the lender couldn’t find much information on your car’s value because of its age. Kelley Blue Book is one of the most popular value guides, but its online database only goes back a little over two decades. Fortunately, there are other vehicle value guides out there that lenders can use, which means this is rarely an issue. Your lender will likely be able to find at least some value information regarding your car.

Getting an Estimate for Your Title Loan

Here at Title Loans Online, we make it easy for you to get an idea of how much you’d be able to borrow through a title loan. We allow to apply for online title loans no credit check. All you’ll need to enter is that basic vehicle information that was mentioned above, along with some basic contact information, including your name, your phone number, your ZIP code and your email address.

We’ll have one of our experienced title loan representatives call you with more information, including a nearby lender who could issue you a title loan. You’ll also get a free title loan estimate, even if you’re looking for title loans for older cars. If you need to know whether you’ll be able to borrow enough money through a title loan, this is the quickest and easiest way to find out. The entire application is available right here on our site, and you can breeze through it in well under one minute.

Title Loan Laws by State

Car title loans are available in just over two dozen states with varying caps on fees, interest rates, and loan amounts. For instance, Alabama allows an APR of up to 300% while Florida only allows up to a 30% APR. States also have varying caps on the repayment period and how a car title loan can be refinanced. Salvage title loans are also available in states that offer car title loans. A vehicle that qualifies for a salvage loan is one that is damaged to the point where repair costs are at least 75 percent of the value of the vehicle. Both types of title loans require the same documentation during the application process. These documents include:

  • Driver’s license
  • Insurance documents
  • Proof of income
  • Contact information

Before you start collecting these documents to obtain a car title loan, make sure and check to see if this type of loan is available in your state.

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