Every industry has its little secrets and this is one of them. You are about to learn some interesting tidbits about the title loan industry and maybe you will see why Max Cash® Title Loans is critical to keeping things “in check”. Brace yourself. you may not like what you are about to read!
Max Cash is a consumer resource and a licensed financial broker, not the lender. We choose qualified lenders with good track records and only ONE application per lender – not several. It’s us and our lender and our lenders only use the information for themselves.2
Dealing with multiple applications at once can be a hassle, and it’s not ideal for someone looking for a streamlined process. One of the perks of choosing a financial broker is that we can see potentially available lending options in our network for you, and direct you to the lender (whether it is in person or online) that best fits your location and needs.2 5
YOU MAY BE DEALING WITH A 3rd PARTY PLAYING LIKE THEY ARE THE LENDER
Some title loan companies online are middle men for larger companies. They are “agents” for the main lender who is really the company or person who funds the loan. Is this wrong? Maybe yes because you never know really who you are dealing with unless they are a licensed broker or a licensed lender. You can usually spot these companies because they won’t give you a price over the phone or they won’t get you in touch with the lender if you need to. Simply ask if they are the company that is lending the money themselves or if they are a broker. They will tell you if they are legit. Brokers are awesome companies but make sure that they are licensed so that there is someone looking over them.
To prove we are legitimate… We posted our brokers license, valid at the time this article was created. Ask them to produce theirs. If they can’t run away.
SCAM WARNING – IMPORTANT TO READ THIS PART!
Some scammers will obtain your information and call you out of the blue. They may ask you send them money as an application fee. Some will even ask to have to you send more personal information to them before the offer and request for money. REAL LENDERS AND BROKERS NEVER and we mean this strongly NEVER EVER ask you to send them money! A loan is a loan and you should not be asked to send money to them.
True story: We recently got a call from a person asking us for help. He stated that he sent $250 “application” fee to a company promising him $4500 at a real low interest rate. He claimed the company sent him two checks. BOTH of them was from bogus banks and non cashable. He asked what we could do to help and we would him to call the police. He did get a loan from us after trying to help with the thief company. We could not help him with the past but we did help him with a REAL car title loan.
TELEVISION MAY FOOL YOU
You have seen the commercial of the puppet talking about getting a loan? Good company (actually pretty big and reputable) but they are a lead generator and they rake in millions of dollars selling your information. Lenders pay them for that information but so do others. They are not alone. Some spend millions of dollars but they make hundreds of millions doing it.
Now is that a bad thing? Not really but there are laws coming out now that these companies MUST disclose to the consumer that they are reselling the information and more importantly how it will be used. Privacy is important here.
COULD YOU GET MORE MONEY FOR LESS?
The exact amount of your loan depends on factors like your income, the value of your vehicle, and in some cases… the lender you decide to work with at the end of the day.1 5
Different lenders can offer different loan to value ratios in SOME cases (depends on the state you live in, relevant laws, etc.) so comparing your options is important.
Also the amount of the loan varies FOR THE SAME CAR! It depends on what method they are using. Get this… you can use Retail, Wholesale, Auction, Trade-in and companies use Blue Book, Black Book and Mannheim (three different companies to evaluate worth) and even one more has its OWN rating system. THEN then company can use any percentage they want of those prices! Example… let’s say you had a 2004 Lincoln Town Car with 150000 miles in fair condition. Using Kelly Blue Book your car is trading in at $4,538. Same car… to a private party $6, 678! Okay so let’s use the low price… take that number and multiply it by 40%. Your loan would be $1815. Same car, same price at 60%…$2723!1
So what you just learned is that the method they use, the percentage they choose and they way they do it is ALL UP TO THEM. So if you ask for about 10-15% more than what they offer… they usually will say okay!
[HINT] Use an industry term on them to fish this out… Ask them what the LTV is. LTV = Loan to Value. The higher the number the more money you will get. Some will do 50% while other will do 85%. Big difference…same car. If they have a high LTV you won’t be getting more money then what they said but if it’s low, they have room to offer more money if you can afford to repay it. It’s important to show that you can make payments on the loan and avoid defaulting on a title loan.
If you have been paying the monthly amount is too steep… many title loan companies will buy out the loan of the other and at a different rate. We can help with this refinance a title loan issue because the ability to repay any loan is critical to getting the loan itself.2 5
Title Loans for All Types of Cars?
A title loan involves putting down a car’s title as collateral in exchange for a loan. Cars can come in all sorts of variety, everything from the make, to the year the car was manufactured. If someone is looking to get a title loan they are probably wondering what type of car can be used for it. In addition there are probably other questions regarding the car and the role it plays in determining eligibility for a title loan.
How Much Discretion Does the Lender Get With Cars?
The lenders for car title loans, ultimately get to decide whether they will accept a vehicle for a car title loan. In addition to choice, there are some rules/laws or regulations loan lenders must follow in accordance to the state they service. There are some states that simply do not allow for car title loans. The states that DO allow title loans must follow the guidelines given to them. Because of all these rules and exceptions it may be best to look at several lenders when looking at a car title loan.
What kind of Vehicles May Be Used for a Title Loan?
For title loans there a many kinds of cars or vehicles that could be used, these include but may not be limited to:
- Minivan
- Truck
- Motorcycle
- Scooter
- RV
- Boat
- Classic Car
Most lenders will accept the type of vehicles above. There are a few key things to remember about the vehicle, in order to possibly qualify for a title loan.
- No matter what kind of vehicle a person has, the vehicle must be in safe, working condition
- There are some rules for moving from state to state. Usually cars registered to one state, cannot be used as collateral in another state.
What if My Car is Really Old?
If the borrower is trying to get a title loan on an older car (as long as the vehicle is in safe, working condition). It may not impact their eligibility. Keep in mind there are lenders out there that will set a range for the age of the cars/vehicles that they will accept. So, again it may be best to look around to several lenders when looking to get a title loan. The age of a car can be a factor in determining its value. Along with a few other things:5
- The Make
- The Model
- The Mileage
- The Condition
After the lender gets all of this information they will then go to places like Kelley Blue Book, or Black Book to figure out the value of your vehicle. It may be helpful to do some research on the value, along with familiarizing yourself with title loans before going to a lender.
How Do Lenders Determine Condition of a Car?
To figure out the condition of a vehicle lenders might look at a couple things on a vehicle:
- The Exterior of The Vehicle – Any dents, scratches or weather related damage such as rust
- The Interior of The Vehicle – The upholstery of the vehicle, if there are any rips and/or holes, or staining
- The Overall Performance – If the vehicle’s engine is working like it should and the car is running well
Ways That Lenders Will Ask To Check for Condition?
- They may ask that to bring the vehicle to them in person to be looked at
- They may ask that for several pictures of the vehicle (inside and out, they will give specifics)
- Some may not ask to see the vehicle at all (Although this is a rare occurrence)
What if I Have More Than One Car?
Some people may find that they have more than one vehicle, and may be curious as to how many cars they can use for a car title loan or which car they should use to get the most out of their title loan. Title loans can only be given out one at a time which means that a borrower has to choose which car they want to use. The values of the cars owned cannot be combined to form one value for a title loan. If the vehicles that a person has are all pretty similar it may be difficult to figure out which one has the most value. The best way to go about this is to let the lender know about the other vehicles. Once the lender has all the information, then they can figure out what the value comes to for them. Different lenders may have different values for vehicles.1 5
If you have any questions about car title loans, don’t hesitate to reach out! Call our loan agents at 855-561-5626 today.