Do you know what the current equity in your car is? This is a valuable piece of information that can clue you in to your financial health by understanding your assets as well as something that could unlock certain lending opportunities.
When you “have equity” in your car, that means your car is worth more than the amount of money you might still owe on it. Determining how much equity you have in your car is an important skill to have as a car owner.
Max Cash® Title Loans can help you break down how to figure out what the equity is in your car. This equity might be used for a loan if you need some emergency cash.
Determining the Equity in Your Car
Determining the value in your car can be pretty straightforward if you aren’t still paying an auto loan on it but it can take a bit of math if you are still paying the car off. However, if you follow these basic steps, it should be incredibly easy to determine the total equity in your car
Find out your car’s overall value.
The first thing you need to do is determine the total value of your car regardless of any loans. An excellent site to use for this is Kelly Blue Book. On KBB, all you need to do is input a few basic details about your car like the year, make, model, mileage, and general condition of your car.
Using that information, the site will be able to give you an estimation of the overall resale value of your vehicle. Even though it is an estimate and not exact, it’s a great number to start with when determining your car’s equity.
Determine how much you have left to pay.
Next, you will need to determine if you are still paying off your car through an auto loan. You will also need to check if you have any kind of lien on your car’s title. If you have an auto loan that you are still paying down, then take a look at your most recent loan statement. It will help you determine how much money you have left to pay.
Calculate the equity in your car with those numbers!
Now here comes the math but don’t worry, it’s not too difficult! Get a piece of paper and a pencil or a calculator and take the total number of the resale value of your car. Then, subtract from that the amount of money you have left to pay on your auto loan.
The number you have leftover is the estimated equity that you have in the car. Like this: (Estimated Resale Value) – (Leftover Loan Balance) = Equity!
Knowing the equity of your car can help you calculate your net worth since your car is a major asset. The equity of your car can also be used to get a quick loan if you need some cash quickly through auto title loans!
How to Use the Equity in Your Car for a Loan
Were you aware that it’s possible to use the equity value already in your car to get a quick, easy loan? If you have positive equity in your car, then you could qualify for a car title loan!
A title loan is a secured installment loan. It allows the borrower to use the equity of their car as collateral for a loan. Using the car’s value as a means to secure the loan opens a lot of opportunities! It can allow people to be approved regardless of a poor credit score or even past bankruptcy.
Car title loans allow you to get money quickly through the equity of your car. A lender does this by placing a lien on the title of ownership for your car. When the loan has been fully repaid, through the regularly scheduled monthly payments, the lien is removed.
Process for a Title Loan Using Your Car’s Equity
If you have equity in your car that you’d like to use for a loan, then you can see if you qualify for a car title loan through a simple three-step process.
Max Cash Title Loans makes it easy to see if you will be approved and how much you might be able to borrow. See if you qualify by doing the following:
First Step: Our Online Form
The first thing you need to do to see if you will qualify for a car title loan is to fill out the handy online form! This is found on the Max Cash Title Loans’ website.
You’ll be required to input some basic information about yourself. This includes your name, date of birth, current income. You will also be required to provide a few details about your car, like the:
- and Condition
Second Step: Send in Some Documents
You will be asked to send in some important documents that can help you be approved.
The typical documents needed by a lender to approve you for a title loan include:
- A Government-Issued Identification
- The Title of Your Car
- Proof of Address
- Proof of Income
- Pictures of Your Car
If any other documentation is needed, Max Cash Title Loans or the lender will reach out to you!
Third Step: See If You’re Approved
After everything has been reviewed, you will be notified if you’ve been approved or not!
If you’ve been approved, then the lender you’ve been connected with will send you a draft of your contract. Read through your contract and terms carefully and let your lender know if any changes need to be made!
Once everything looks good to you, you can sign your contract and get your funding through a wire transfer, direct deposit, or by getting it in person at a MoneyGram in your area.
Max Cash Title Loans Works for You
If you decide to use the equity you have in your car to get a title loan, there is no better place to turn than Max Cash Title Loans. They work hard on your behalf to get you the most affordable terms and competitive rates!4
Figure out the equity in your car and see if you qualify for a loan today!