Are you considering a car title loan for some emergency cash? A car title loan could be a quick and easy way to get cash. If you only recently purchased your car, then you may be wondering if you can get a title loan with just the bill of sale!
Since a title is meant to prove that you own a car, you might think there isn’t much to differentiate it from a bill of sale. Max Cash® Title Loans can help you distinguish the two and help you figure out exactly what you need to do to qualify for a car title loan.
Is It Possible to Get a Title Loan with a Bill of Sale?
Unfortunately, you can’t obtain a car title loan with just the bill of sale. You need to have a title of ownership in your name to qualify. Having the title to the car that you want to get a title loan on is necessary for you to be approved because of the very nature of how title loans work.
Thankfully, it is possible to use your bill of sale to get an official title for a loan so that you can qualify for a car title loan with the help of Max Cash Title Loans. But first, let us give you a run-down of how car title loans work why exactly just the bill of sale won’t cut it.
How Car Title Loans Work
Your car’s title is absolutely necessary to get a title loan. Car title loans are a kind of secured installment loan that uses the equity value in your car as collateral. In order to use the value as collateral, the lender needs to place a lien on the title of ownership to the vehicle. When an installment loan is secured in this way, it allows more people to qualify. Candidates may even qualify with a poor credit history!1
Here is how the basics of how car title loans work and why the title of ownership is central to the process:
If you qualify for a car title loan, then after you sign your contract, you will be asked to hand over the title to your car. This is so that the lender can place a lien on it. You will be able to get your funding directly after. You can drive your car during the repayment process if you continue to make your payments on time.
The lender, who is now the lienholder, will continue to hold on to the title.
Pay Off the Loan
The contract will have stipulated the terms according to which you will make monthly payments throughout the duration of the loan.
Once you have repaid the loan fully, the lienholder will remove the lien that was placed on your car’s title. Then it is returned to you free and clear!
What Is a Bill of Sale?
A bill of sale is an official deed of transfer record that releases the right of ownership of a car to a different person for monetary payment.
The basic elements that should always be included in a bill of sale include:
- The buyer and seller’s full names
- Payment amount for the ownership transfer
- Date of purchase
- Description of the vehicle transferred
- Disclaimer that the property was in good condition when sold
- A warranty
- Signatures of the seller, buyer, and a witness
How to Get a Title with a Bill of Sale
If all you have is a bill of sale, but you want to obtain a car title loan, all you need to do is use that bill of sale to get a bonded title for your car. Here is how you can do so:
- Go to Your Local DMV
Head to the DMV with your bill of sale and some official identification. The DMV agents will let you know exactly how much the vehicle surety bond will cost that you will need to buy from an approved insurance provider.
- Get a Surety Bond
Purchase the necessary surety bond from the approved insurance provider to ensure that your vehicle is clear of any problems so that you can be listed as the new owner.
- Secure Your Bonded Title
After purchasing the surety bond, you will have a specified window of time in which you can apply for a bonded title. The secretary of state will review your surety bond and grant you a title that lists you as an owner.
- Register Your Car
Once you have the bonded title, you will be able to register your car in the state you live in, buy insurance, etc.
Easy 3-Step Process for Car Title Loan Pre-Approval
Once you have your title of ownership, you are ready to see if you qualify for a car title loan! The process for a car title loan is so quick and easy, you could do it in one afternoon. Just follow this simple three-step process to get started:
First Step: Give us some basic information about yourself! Fill in our online form by providing us with your name, your address, and your current income. Additionally, provide the make, model, year, mileage, and condition of your car.
Second Step: After submitting the online form, you will be asked to provide some documents. These documents include a government-issued ID, your car’s title, and proof of residence. You will also need paperwork that provides proof of income and a few pictures of your car. In some cases, a few references are also required.
Third Step: Not long after sending in your documents, you should find out if you are approved or not. You can also find out how much you qualify for. After reviewing your contract, you may be able to pick up your money as quickly. It could be as soon as the very next business day!