A title loan, also known as a car title loan, vehicle title loan or auto title loan, is an option for borrowing money if you have a low credit score and own a vehicle. The title to the vehicle is given to the lender and is held until the loan is repaid. It acts as security or a promise to repay the loan.
Car title loans give individuals who require financial aid a convenient, affordable source of cash without delay. Car title loans typically have easy qualifications and short loan terms.
Documentation for a title loan application
When applying for a car title loan, you will need to provide the following:
- Proof of ownership
- Proof that the car is paid off
- Proof of insurance
- Your driver’s licence
- Certificate of inspection
- Proof of permanent residency
- A bank statement
Some lenders may also require you to install a GPS device and car immobilizer as a security measure in case of loan default.
As the borrower, you should receive specific information in your contract documents. The lender must provide the following:
- The total cost of your loan (the amount you’re borrowing, the amount of interest you’ll pay, plus any other fees)
- The amount and timing of payments
- The annual percentage rate
- The option to pay, in part or full, before the due date of your loan without paying any additional fees
- A description of your car
Accessing a car title loan with a co-owned vehicle
Some vehicles are or co-owned, meaning the title is held in the name of more than one person.
If you are wondering whether you can acquire a car title loan with a co-owned vehicle, the answer is yes. But it is important to note that you cannot take out a loan on the vehicle without the other owner.
The rights of a co-owner
One owner can transfer ownership entirely to the other and sign over his or her rights to the vehicle. However, provided that the car ownership remains with both parties and a loan is obtained, the co-owner can be held financially responsible for the borrowed funds if the borrower defaults on payments.
It is recommended that you have an open discussion with your co-owner regarding your finances before deciding to use the car as security for a loan.
Car title loans in Burnaby and Surrey
Are you in a financial jam and want to use your vehicle as collateral to acquire a loan? Then contact us at Instant Auto Loans.
We are an established, ethical, local company that provides a lower cost of borrowing than our competitors. Our car title loans have flexible terms, no fixed interest and no penalties for paying off your loan early. Also, we will not request a key to your vehicle and do not require the installation of a GPS device or immobilizer.