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How Do Car Title Loans Work?

Car title loans are an asset for anyone who takes the time to apply for them. Knowing where to start and how to complete a car title loan can seem intimidating. But once you know how the process works, you’ll see that it’s a quick and easy way to get the cash you need. If you’ve ever wondered how car title loans work, just keep reading.

Do I Get to Keep My Car?

Yes, you get to keep your car while the car title loan is in effect. The loan is backed by the equity of your vehicle. Drive it while you pay off your car title loan. The loaner can and will tell you to keep your car during the duration of the loan.

How Do Payments Work?

You’ll be able to pay off your car title loan in monthly payments. Loans are typically between 24 and 44 months, so the amount of your loan will be spread out over that time frame into equal payments. You’ll end up paying taxes and interest on most widely available car title loans. Budgeting your payments can be quick and easy. Meet with a car title loan representative to understand what your options are for loan amounts and monthly payment amounts.

Car title loans have to be repaid, and the first payment is due 30 days after you receive the loan. Unlike many other loans, you can pay off your loan early without penalty. However, remember that if you default on the car title loan your car can, and will, be repossessed.

Whose Car Can I Get a Car Title Loan for?

You must own the vehicle you’re trying to apply for a car loan against. You can have car title loans for multiple vehicles, but you have to own them all. Most car title loan establishments require you to bring proof of ownership when you come to take out a car title loan.

Which Car Can I Get a Car Title Loan for?

Any car you’re hoping to get a car title loan against must be yours and must be either fully or mostly paid off if there is a lien on the vehicle. Many car title loan dealers will help pay off your remaining lien balance if it is less than the car title loan you’re approved for.

Once you understand the basics, getting a car title loan is a quick and easy process. If you’re considering a car title loan, call on the team at SBR Title Loans. Our professional, thoughtful representatives are waiting to help you get the car title loan you need. Contact us today.

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