If you are considering getting a title loan for some funding, you may be able to get a better idea of whether you can qualify, or how much you might be able to qualify for by figuring out how much value you have in your car.
Max Cash Title Loans can help you figure out exactly how to value a car for a title loan. Determining the equity of your car is a good overall skill to have as a car owner. Your vehicle is a personal asset which is an important piece of your net worth, a vital aspect of your financial health.
Knowing the value that you have in your car can be helpful for many purposes including obtaining a loan using it.
Can You Use the Value in your Car for a Loan?
Just like with your home, it is possible to utilize the equity value in your car for a loan. There can be a simple and quick way for all kinds of people to get a loan!
It is a requirement that you have positive equity in your car in order to get a car title loan because that equity is what secures the loan. The same rule applies for other kinds of secured loans like a home equity loan, your house must have positive equity for you to get a loan using it!
The first step in determining how much you might qualify for in a car title loan is to figure out the actual value of your car. That way, you can know how much equity you actually have in it.
Learn How to Value your Car for a Title Loan
The very basic calculation for determining your car’s actual equity is to take the total worth of your car, minus the sum that you still owe on it. If you are not still paying off the car then the calculation is even simpler.
Breaking it down step by step for positive equity:
- What’s your vehicle’s total worth?
It couldn’t be easier getting a pretty accurate estimation of your car’s worth with the help of Kelly Blue Book.
For free, you can simply input your car’s year, make, model, mileage, and general condition. From there, it will give you a decent approximation of its resale value! This is a great place to start from.
- Do you have an auto loan you are still paying?
If you are still paying an auto loan on your car, then you are not done yet. Next, you have to figure out how much you still owe on the car. This should be as easy as checking the latest loan statement you received. If you can’t locate it then reach out to the company or bank you got the auto loan through!
- Calculate total positive equity!
Finally, subtract the sum you still owe from the total estimated worth you got from Kelly Blue Book and that is your positive equity leftover. If you are not still paying off your car then your car’s positive equity is simply the total over worth.
How Much Can You Get on a Title Loan?
How much you can get on a title loan is dictated by several different factors. However, it is mostly dependent upon three things:
- Your Car’s Positive Equity
You are unlikely to be offered a loan that is worth 100% of what your car’s positive equity is as that would likely be a higher risk loan. The equity in your car has a great impact on how much you will be offered whereas the two following aspects are more likely to impact your loan to value (LTV) percentage!
- Your Ability to Pay Back the Loan
Lenders will know better how big of a percentage of your car’s value they feel comfortable lending you by knowing your ability to pay off the loan. This is determined through your current income. If you can prove that you are making a satisfactory income regularly then you are likely to get a higher LTV percentage.
- Who Your Lender Happens to Be
Some lenders out there give higher loan amounts while others give less!
Max Cash Title Loans works hard to connect you with lenders who fit your needs best!
Can You Get a Title Loan with Poor Credit?
It is still possible to be approved for title loans despite having poor credit. While Max Cash Title Loans and the lender still run a credit check within the pre-approval process, your title loan is a lot more dependent on your car’s equity and your ability to repay the loan than it is on your credit score.
Since you are using the equity in your car to secure the loan, your credit score or even bankruptcies are not usually held against you in the qualification process!
Quick and Easy Process for Approval
The only way to be sure how much money you might be able to qualify for in a title loan based on the value of your car is to do Max Cash Title Loans simple pre-approval process. It should only take a few minutes out of your day and could not be easier.
- Online Form
Fill out the online inquiry form with some basic info about yourself, your finances, and your car! You can find it on the homepage of our website.
- Send Documents
These include a government ID, the title of your car, and proof of residence. Additionally, you will need to provide proof of income, pictures of your car, and a few references.
- See If You Qualify
Once all your details are reviewed, you will be notified as to whether you qualify. Additionally, you will be told how much you might qualify for. From there you will get to decide whether you want to move forward with the loan using the title of your car!
Max Cash Title Loans is the reliable title loan marketplace that you can depend on to help you find the best value that you can on a title loan using the equity in your car!