Does The Lender Take Your Vehicle With An Auto Collateral Loan?
In majority of cases, you will be able to continue using your car as you normally would if you get approved for an auto collateral loan. However, the lender may take your car if you fail to repay the loan. What are the types of loans that allow you to use your car as collateral and which one would be a better option for you? Find all the necessary information below.
Can You Really Keep Your Car When You Get An Auto Collateral Loan?
Your vehicle will be used as collateral if you get approved for an auto equity loan or a title loan. The good thing is you will be allowed to continue driving your car, after being approved for the loan. But the lender may take your vehicle if you fail to repay the loan.
Do bear in mind that some lenders might require you to install a GPS tracker in your car when you get an auto collateral loan so that they know where the car is located at all times.
What Are Is The Difference Between An Auto Collateral Loan And A Title Loan?
Though some people might use the words ‘auto equity loan’ and ‘title loan’ interchangeably, they are not the same thing. Perhaps the main difference between the two is that you might be able to qualify for a car equity loan even if you’re still paying off your vehicle.
For example, if your car is worth $12,000 and you owe $5,000, you can borrow against $7,000 in equity. Lenders that offer title loans would typically only approve the loan if the car is fully paid off and the title is lien-free.
Car title loans are generally short-term loans that you can repay in a few months or so. Auto collateral loans are long-term. Finally, equity loans are not as popular as title loans, so finding a reputable lender that offers the former in your city might be challenging.
What Is The Main Disadvantage Of An Auto Collateral Loan?
Though equity loans might seem like a great option for those who do not yet own their car outright, it is not always the case. In fact, you can quite easily lose a small fortune. When you get an equity loan, you automatically add an additional sum to any amount that you already owe.
As it might take you a year or even longer to pay off the loan, you may, in the worst-case scenario, end up owing more than what the vehicle is currently worth, simply because cars tend to depreciate in value over time. So, you might actually lose money by taking out such a loan, in case you attempt to trade in or sell the vehicle.
Why Choose Delaware Title Loans, Inc.?
The reason why a lot of individuals decide to go for title loans is because it’s a way to get access to a portion of the car’s value without having to sell the vehicle. The fact that you already own the car outright is an important advantage as well, as you wouldn’t have to worry about paying the actual vehicle off, and you'll get to fully focus on repaying the title loan.
If you decide to take out a loan from Delaware Title Loans, Inc., you wouldn’t even have to visit the store. And, of course, you’ll get to keep driving your vehicle while paying off the loan.
How Can I Apply?
You can fill out a quick online form whenever you have a few minutes of spare time. If you’d prefer to immediately talk to a human, you can always begin the application process by phone. Do bear in mind that even if you choose to fill out the online form, a loan representative will soon give you a call to answer all of your questions.
What Items Will I Need?
You will need only a few things to apply for a title loan from Delaware Title Loans, Inc. auto collateral loan, like your state-issued ID, a lien-free title to your vehicle, and the actual vehicle.
Can I Qualify with Non-Existent Credit?
Bad or non-existent credit should not prevent you from applying for a title loan. The company welcomes all types of credit. And if you get approved, you may end up getting up to $15,000 despite your poor credit score.
Apply For Easy Title Loans Today!
Before deciding to apply for an auto collateral loan, you have to find out exactly what type of loan is offered by the lender. Car title loans are, perhaps, the most popular loans that use your vehicle as collateral. Their main benefit is that they offer fast cash that you can use to take care of an emergency.
If you decide to take out a loan from Delaware Title Loans, Inc., you will also get to keep your car and you might get the money you need without even paying a visit to the store! Call or fill out an inquiry form to get started right now.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.