Can I Get Title Loans on an Impounded Car?
If you’re struggling to pay impound fees and can’t immediately borrow money from friends and family, one of your options to move forward is a car title loan. While you cannot take out a title loan on a vehicle currently stuck in impound, you can use a vehicle out of impound to apply for a title loan. Title loans on impounded cars can offer a number of advantages over traditional bank loans, including:5
- Quick Turnaround: You may be able to get approved for a car title loan in as little as one business day after sending in your documentation.5
- Minimum Credit Requirements: Lenders are more concerned with your ability to pay the loan back and the value of the car. As such, they usually lend to borrowers of diverse credit backgrounds.5
- Keep Driving Your Car: Even though your car title is being used as collateral for the loan, you’ll be able to keep and drive your car like normal. Just be sure to keep up with your convenient monthly payments.
- Simple Inquiry Process: Title loans come with simple requirements and an even easier application process that was designed with financial emergencies in mind.5
What Happens if I Can’t Afford to Get My Car out of Impound?
Cars can get sent to the impound for many different reasons, including:
- Expired Registration
- Vehicle was in a Serious Accident
- Unauthorized Parking
- Unpaid Parking Tickets, Resulting in a Towing
- The Driver was Operating Vehicle Without a Valid Driver’s License
- The Driver did not have Valid Car Insurance or Proof of Insurance
Regardless of the reason, getting your car out of impound can be a hassle. One of the problems that you’ll need to solve is how to pay any associated fees and tickets. If you don’t pick up your impounded vehicle because you can’t afford to, it can rack up a lot of charges from the city just by remaining in the storage lot. If you never pick it up, then after a certain period of time, the impound lot owner may decide to auction your vehicle.
When you need to get your car out of impound fast, you might be considering a car title loan. Finding the right lender can also be stressful. Max Cash® Title Loans exists to help people connect to a car title loan when they need it most.2 5
Before you submit an application for a loan on an impounded car, the first thing you need to do is locate your car and determine that it wasn’t stolen. If you parked illegally, there may be a notice with the number of the towing company. If you were parked on the street, you may need to contact the municipality. Note that it may take a little time for the record of impounded vehicles to be updated. You’ll want to get information like the hours the lot is open, how much money you’ll need to get your car out, what documents you need to bring with you, the lot’s fax number, etc.
Financing Options to Get Your Car Out of Impound
Once you have that information, you need to figure out how to get your car out of impound. There are many financing options to choose from. However, the options available to you may be limited depending on your credit history. You can rely on credit card cash advances if you have enough available credit to cover the impound fees, but only take out this advance if you can afford to pay it back before the next billing cycle to avoid interest. Personal loans can be tough to obtain approval for if you do not have a strong credit score as well.
With a car title loan, you can use a non-impounded vehicle as collateral for emergency funding and use your loan proceeds to get out of this sticky situation! Ultimately, the loan option you choose will depend on your preferences and your current situation.5
How Much are Impound Fees in 2024?
Essentially, impound fees vary wildly across the country, but they are always expensive. Because of this, you’ll want to get your car out as quickly as possible to avoid paying daily storage fees!
Typically, you will need at least a few hundred dollars to release your vehicle from impound. However, the total amount you need to have on hand to get your vehicle back depends on various factors such as the reason your vehicle was impounded, the size of your car or truck, and the type of vehicle you have. Some fees that can affect the final cost include lot storage fees, impound fees, and in most cases, towing fees.
What Do I Need to Qualify for a Title Loan on an Impounded Car?
If you’re interested in applying for car title loans on impounded cars, there are a number of documents you’ll need to get together. The exact documents can vary from lender to lender and state to state, but some more important ones are:
- Qualifying Car Title in Your Name
- Proof of Residence (Certain pieces of mail)
- Valid, Government-Issued I.D. (Driver’s License, REAL ID, U.S. Passport, etc.)
- Photos of your Car (front, back, and sides, etc.)
- Proof of Income
It’s worth mentioning that some lenders don’t require photos of your car. If a title lender does not require photos, this is because you need to bring your car in for a physical inspection if you want a car title loan from them. The lender will have loan agents to walk you through the inquiry process from start to finish, so it won’t be a hassle!5
How Much Money Can I Get Through Car Title Loans on an Impounded Car?
If you need a title loan on an impounded car, you may have questions about the amount of money you can access through a secured loan. Essentially, title lenders use several factors to calculate the amount of money you can borrow, including the following:1
- Value of your car
- Your income and ability to repay the loan
The value of your car is calculated by taking a number of factors into account, including the vehicle’s make and model, current mileage, condition, year, style, etc. This factor, along with your income, primarily determines the amount of money you can borrow upon final approval.1
Your monthly income is used to determine how much money you can afford to pay back each month. Finally, the length of your loan determines the size of your monthly payments. Note that some states restrict the length of the loan term for car title loans, which can impact the size of the monthly payments.1
What Can I Use as Proof of Income for a Car Title Loan on an Impounded Car?
While many people use a recent pay stub as proof of income for their car title loan, there are actually a number of different things you can use to demonstrate your ability to pay the loan, including the items listed below:5
- Worker’s Compensation Award Letter
- Disability Income Award Letter
- Social Security Income Statement
If you have any questions about the type of documentation you will need to prove your income when applying for a car title loan on an impounded car, call 855-561-5626 today!5
What Happens if I Don’t Pay My Car Title Loan Back?
Firstly, it’s vital that you contact your lender as soon as possible in the event that you are struggling to pay back your car title loan. Borrowers who miss too many payments can go into loan default and run the risk of losing their car. While the specific process varies from state to state, repossessions typically follow a general pattern. Depending on the state, the lender must send a right-to-cure notice to the borrower. This documentation lets the borrower know that they have a limited amount of time to pay back the entire loan. Once this time has passed, the car can be repossessed.
After the car has been repossessed it is normally sold at auction. Any proceeds go towards paying the balance of the loan. What happens after the auction can vary from state to state. In some cases, the lender must return any excess money to the borrower or can continue to pursue the borrower if the auction doesn’t raise enough money to cover the balance of the loan.
Where Can I Get Car Title Loans on Impounded Cars?
When it’s all said and done, getting your car out of impound can be stressful. You need to rush around and get all the necessary paperwork, racking up fees the whole time. Car title loans on impounded cars can be a lifeline when you’re dealing with fees and uncertainty. If you’re not sure where to start, reach out to Max Cash Title Loans today and get help finding a car title loan! You can apply from the comfort of your home today and let us do the legwork for you to find a lender.1 2 5