Are you searching for quick cash? Not willing to go for the conventional loans which require time to approve the loan amount? An auto equity loan can solve your financial difficulties. It’s one of the best and the most effective ways to get quick cash with little verification of your income and no credit check required.
Auto equity loan is a secured loan which allows the borrower to make use of their car title as collateral for the loan. Lenders must place a lien on the car title of their borrower. Also, in order for the borrowers to secure the loan, borrowers must provide the hard copy of the car title to the lender. As you repay the loan, the lien will be removed and you’ll get your car title back. Now, do you know what a car title is? It’s the legal certificate for a car that establishes an individual as the legal owner of the vehicle.
If you fail to repay your loan on time, then your lender can reclaim your car. They can also sell it to repay your debt. These are short-term loans and the interest rate is lower than unsecured loans. It’s also the most preferred way to get quick cash. Furthermore, your credit history won’t be considered by the lenders while lending you the money. They will only take into consideration the value and condition of your car.
How Do Auto Equity Loans work?
While providing you the loan, the lenders will assess the value of your vehicle on the basis of the wholesale price. They will decide the loan amount based on the worth of your vehicle. The lender will then hold your car title until you repay the loan. You will be given a particular period to repay your loan. If you fail to repay the credit within the specified time, the lending company has the authority to sell your car. But, many companies also offer the option to roll over the payment.
Before entering into any financial agreement with a lender, check out the step or the options that the company provides, in case of late payment or non-payment of the loan.
When you’re obtaining a loan against your vehicle, you’re putting your vehicle title up in exchange for cash. What is valuable about this loan is that you’re still the owner of your vehicle, even though the title of the vehicle is on loan. This also implies that you can still use your car during the period of your loan.
Who Can Qualify For The Loan?
To qualify for an auto loan, car owners must have the vehicle title. Borrowers should also have the car insurance. If you’re still indebted to the bank or any loan company from where you have taken a loan to purchase the vehicle and your car title remains with them, you can’t opt for the loan. The auto loan lending company will not allow you to make use of your car as collateral to secure the loan.