If you want to buy a car but don’t have all the cash up front, you should consider a car loan. The easiest and quickest car loan you can obtain is a secured auto loan. With a secured auto loan, an asset you own is used as collateral for the loan. Every vehicle has a title. The title is the document which states who the legal owner of that vehicle is. This document includes names, addresses, vehicle identification number, make and the year the car was manufactured. When you already own a vehicle, may use its title as collateral to secure an auto loan. This type of loan is called a car title loans.
Some Things You Should Know About a Car Title Loan
Before you sign away your car as collateral, here are some things you should know about a car title loan:
Advantages of a Car Title Loan
- Same day approval
With a car title loan, once you provide all other relevant documentation, your auto loan can be approved the same day you apply for it. The money will then be sent straight to your bank account and you can start making arrangements for your new purchase.
- No credit check
A bad credit score will not cause a problem since a car title loan is given based on the value of your car and not necessarily your ability to repay. The value of your car will determine the amount of money you can borrow from the lender. For this reason, lenders do not typically run a credit check for car title loans.
- You keep your car
Although you will be required to hand over the title to your car in order to secure your loan, you still get to use your vehicle as you normally would. Note though that the lender may require you to upgrade your insurance if your current policy does not provide enough coverage.
Disadvantages of a Car Title Loan
- Possible repossession
While a car title loan allows you to keep and drive your car while repaying the loan, even though your car is the collateral, should you default on your loan your car can be repossessed to repay the balance.
- Higher Interest Rates
Because car title loan as short-term in nature they can carry they can carry extremely high interest rates. Some lenders may even offer interest rates as high as those with payday loans. Luckily, with a bit of research, you may be able to find a lender with more attractive rates.
Do You Need a Car Title Loans in Surrey?
If you are searching for an auto loan company that provides car title loans in Surrey, allow Instant Auto Loans to take you through a simple and hassle-free process.
How to qualify for a car title loan from Instant Auto Loans
There are just four simple requirements standing between you and the ability to drive away with a same-day, approved loan from Instant Auto Loans:
- Is your vehicle registered in British Columbia?
- Is it Lien free? This means the vehicle is completely paid off and is not being used for collateral in another loan.
- Do you have collision and comprehensive insurance?
- Is your vehicle valued at a minimum of $4,000?
If your answer to all the above questions is yes, not only do you qualify, but you may even be approved in as little as 15 minutes.
At Instant Auto Loans, we have been providing our clients with courteous and confidential service since 1986. You’ll also find that we have rates that are among the best in the short-term lending industry. So, what are you waiting? Give us call today or apply online.