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A lot of people are turning towards car title loans. This may be because they have poor credit, because they need money very quickly, or because they only have a short term financial emergency. It is generally quicker and easier to turn to these lenders than what it is to go to the bank. Plus, you can find lenders both on the high street and online, for further ease of use.
How to Apply for Auto Title Loans
The different auto title loans Los Angeles providers will have different specific requirements for applications, but they are usually reasonably similar. Broadly put, you will need to demonstrate that you own a vehicle outright and that it is free from liens. You will also need to prove your income, address and identity. Some lenders will look at your credit history, but the majority will only do so to further confirm your identity, not to decide whether or not to give you a loan. This is one of the most attractive things about these types of loans for many people.
How Much Can You Get on Title Loans in Los Angeles?
The exact amount you will be able to get on a car title loan varies depending on a number of factors. Generally speaking, the vehicle will first be valued to find out how much it is actually worth. You can get a reasonable idea of this by checking the Kelly Blue Book. In most cases, you will not be able to get more than 50% of the current fair market value of your vehicle. Additionally, most lenders will have a maximum depending on your income, as you will need to pay the money back at the end of the month. Hence, it is highly unlikely that you will receive more than $2,000 for the vehicle, regardless of the actual value. There are exceptions, of course, for instance if you have a six figure income and are looking for a title loan on a Ferrari.
What Happens if I Don’t Pay it Back?
You should never take out any of the secured loans Los Angeles has to offer unless you know for sure that you will be able to pay it back. Some title loans allow you to roll over several times, meaning you extend your loan period by one month. However, you will still always have to pay at least the interest at the end of the month. This makes rolling the loan over incredibly expensive, because interest rates on title loans are very high. If you don’t pay your loan back, your vehicle will be repossessed and sold. Although you will usually only have borrowed 50% of the value, it is unlikely that you will see any money back. This is because any surplus will be used to pay off your interest and the repossession and sale fees. If you don’t intend to pay your loan back, you would be better off simply selling your vehicle rather than applying for a loan at all.
