What is a Car Equity Title Loan?
A car equity title loan, otherwise known as an auto title loan or a pink slip loan, is a convenient way to borrow against the value of your vehicle. In order to access a portion of the available equity in your qualifying car, truck, or SUV, you will need to pledge its title as collateral for the loan.5
If you need to access fast funding and do not qualify for a traditional bank loan due to your credit history, a title loan can be an option to consider. Title loans are known for catering to car owners with lower credit scores. Since the loan is secured by the available equity in your car, your credit history is not the focus of your loan inquiry! Keep reading to learn more about securing car equity title loans with the help of Max CashⓇ Title Loans today.2 5
How Does Car Equity Work?
Essentially, car equity is the difference between the market value of your vehicle and the amount that you still owe on your car loan (if anything).
If your car is completely paid off, then the amount of equity in your vehicle is equal to its current resale value.
Most car owners in the United States have their vehicle financed through an auto loan from a lender or a financial institution. If you are still paying off your auto loan, then the equity amount in your vehicle can be either positive or negative. Understanding the difference between these two elements is crucial!
What is Positive Equity and Negative Equity?
Positive equity or negative equity on a car occurs when the vehicle is being financed. Here is how these types of equity work:
- Positive equity is when the total value of the car is worth more than the value left to pay back on the loan. The more you pay off your car loan, the more equity you are building.
- Negative equity is when the total value of the car is not worth more than the value left to pay back on the loan. This is often referred to as an upside down car loan and occurs when you end up owing more money than your car is worth before you pay off your loan. If you do not put down a substantial down payment and take on a car loan with high interest rates.
If your vehicle has negative equity, you will not be able to apply for a car equity title loan. However, even if you are still financing your vehicle, it is possible to secure a loan against your car! Talk about your options today with Max Cash Title Loans by dialing 855-561-5626.2 5
How Do I Determine the Equity of My Car?
The first thing to do when determining the equity of a car is figuring out the value of the vehicle. There are a few ways one can go about finding out a car’s value:
- Get an Appraisal in Person – Car dealerships may be able to figure out a car’s value once they take a look at it.
- Get an Online Appraisal – Online evaluation tools on websites like Kelley Blue Book and Edmunds make it possible to determine the value of a car. Websites will ask for the make, the model, the year and mileage to come up with a value.
- During a Title Loan Inspection – When applying for a title loan, your vehicle will need to undergo an inspection. This is done to determine its overall value and condition. This inspection can take place online or in person with your lender! By providing the necessary information about your vehicle and completing an examination, you can learn more about the available equity in your vehicle and see if it qualifies as collateral for a title loan.5
Once the value of the vehicle is determined, any amount due from financing/loans should be subtracted to determine whether the vehicle has positive or negative equity. As mentioned above, if there is nothing left to be paid for the car then the entire value of the car is equal to its market value.
Tips to Increase Your Car’s Value Before Applying for a Title Loan
Although not every one of these factors below can be adjusted, (unless one can afford costly improvements or engine replacements / customizations) here are just some general tips that we at Max Cash® Title Loans recommend that could increase the vehicle value of your car:1 5
- Take care of your car: Avoiding any hazards when possible and making sure you take precautions when driving your car are just some ways and steps you could take when taking care of your car. You will need a vehicle in good working condition to apply for a title loan.5
- Avoid bad habits: Pushing your brakes hard or keeping garbage that could stain the interiors of your vehicle are just some habits you should kick out to keep your car healthy and keep its condition in peak form.
- Always listen to service lights: Whether it’s an oil change or other warnings, listening to what your car is dealing with as early as possible can fix smaller issues that could end up being bigger problems later down the line.
- Save gas when you can: There will be times where you may not have to use your car to get to a place. The less miles you put on your car, the more value it can have over time! Not to mention, transportation alternatives like using a bike could be a great way to get some cardio in!
- A clean car is a nicer car: Whether it’s a car wash or by hand, cleaning your car once a week or once a month will improve its external value and can keep your car looking brand-new.
What Will I Need to Apply for a Title Loan?
If you’re considering applying for an online car equity title loan, there are a few documents you will need prior to applying. While these items may vary between lenders, this is a brief overview of what you will need to start the process:5
- A valid, government-issued photo-ID (i.e., your driver’s license)
- Proof of residence (i.e., recent utility bills)
- Lien-free vehicle title in your name
- Proof of income (i.e., recent pay stubs)
- Valid car insurance in some instances
- Pictures of your vehicle
Once you have these documents on hand, submitting your loan inquiry can be a breeze!5
Can I Get a Car Equity Loan With No Title?
Getting a car equity loan with no title is not an option because you need your car’s title as collateral in order to guarantee the loan. Without the title, you do not possess proof of ownership. That is a requirement for most title lenders to approve a borrower for funding.5
If you have lost or misplaced your car’s title, you can request a duplicate title at your local Department of Motor Vehicles (or state equivalent).
Are You Ready to Apply with Max Cash Title Loans? Start Now!
At Max Cash Title Loans, we strive to work with as many individuals as possible. We also try to make the title loan process as simple and straightforward as possible.2 Are you ready to start your application? Take a look at our quick loan process below!5
Step 1: Apply
The first step is to apply online or speak with a loan agent over the phone. You can also text us if it’s easier!5
Step 2: Speak with a Loan Processor
After submitting your application for pre-approval, a loan specialist will contact you to discuss your application in-depth. Additionally, you may also discuss your financial needs, eligibility details, and you may need to submit additional personal information.5
Step 3: Receive Approval
Following your conversation, a loan processor will get to work in finding you a title loan. Once we find a direct lender who matches your needs, we can work to get final approval for your application.5
Step 4: Get Your Funding
Lastly, following loan approval, you can choose to receive your funds via check or direct deposit into your bank account or credit union! In most cases, this process can be complete in as little as one business day!1 5
If you’re in a financial emergency where you need some fast cash, Max Cash Title Loans may be able to help. With our easy and straightforward personal loan process, we make the lending process easy for each and every one of the borrowers who use our services.2 Call us today or apply to see how much your vehicle may be worth!