At Max Cash Title Loans, we would love to do what we can to get you possible deals on auto title loans, but there’s a lot of terminology and other options to think over if you decide to look for auto title loans by yourself. For instance, what are liens? How do I get liens? How do liens apply to auto title loans?
Max Cash Title Loans has the answers for these questions, but let’s start out simple and explain what liens are. The definition of liens can be broken down in a few ways.
Liens definition breakdown (courtesy of Merriam Webster Dictionary):
- A charge upon a real or personal property to satisfy a debt or duty. Typically arising by operation of law.
- Security interest created by a mortgage.
Although there are many ways to define what liens are in the world of insurance, loans and economics, here’s how liens can be defined when talking about auto title loans. Liens hold the right to keep possession of property (in the case of a car title loan, the car) until the other person (the loan borrower) pays off the debt that was agreed upon.
How Do Liens Apply to Auto Title Loans?
So now that you have the right idea of what liens are, and how do they relate to title loans, you should know we at Max Cash Title Loans consider ourselves to be experienced individuals when it comes to auto title loans. Auto title loans, as we have mentioned in our FAQ, are loans that are secured based on the value of your car.
But, another thing that this loan requires and is based on is how you plan to repay the loan. That’s why title loans tend to be very beneficial to those who may have bad credit or need funding fast. With auto title loans, the collateral is your car, and when you are unable to keep up with payments, lenders will take it.
That’s where the liens come in! The lien stays on your vehicle on auto title loans. Thus, the only way to remove liens from the title of your car is to pay the loan off!
If you have not paid off your car fully, there is still a change of getting a car title loan. For example, if you have $1,000 left on your vehicle and have just been approved for $3,000 for another auto title loan, then $1,000 of your latest loan approval will go towards paying off the lien on your car, in which the lender will then become the temporary lien holder of your title. You are then left with $2,000 to use for your needs.
After getting a small crash course on what liens are, we at Max Cash Title Loans know what you’re thinking: “Can you get auto title loans that come with liens?” When it comes to auto title loans, the terms for borrowing money in exchange for borrowing your car’s title tend to basically be the same everywhere you go. But of course there may be some differences from one company to the next.
Therefore, you should always make sure you read up on title loan terms involved in your agreement before you take out a title loan.
But if you were to get liens on title loans, how would that work?
Is it Possible to Get Auto Title Loans with Liens?
At Max Cash Title Loans, we have the knowledge and understanding about auto title loans and liens, but now that you know what liens are and how they apply to title loans, here’s the scoop: there are many lending companies that will allow you to get auto title loans that have lien conditions in place.
But there are some limitations with these types of loans, and it is important that you completely understand how the entire process works before you sign any paperwork that could have you involved with title loans and liens.
One example of this is how sometimes a company will use the loan amount that you are approved for to first pay off the lien on the vehicle. You will then be given the remainder of the money to use for your own personal needs.
Final advice? Max Cash advises that you be careful when it comes to looking for title loans, especially if they happen to come with liens. Now that you have a grasp of lien terminology, you now have more knowledge that you didn’t have before on title loans.
But remember, if you need help in your search for title loans, Max Cash is here to help1. Use the #1 nationwide title loans referral service and find out how you could get a great deal on a car title loan today1!