From clean/clear title to collateral to equity in the car, there are so many car title loan terms that it’s easy to get lost. But worry not; Jacksonvilletitle.com believes in making your car title loan application process a breeze. To that end, we’ve put together a list of some common terms that you’ll run into when exploring “car title loan places near me“.
Table of Contents
Car Title Loan Places Near Me: Car Title Loan Terms Everyone Should Know
· Car Title
Otherwise known as a certificate of title or pink slip, a Car Title is a document that establishes an individual’s legal ownership of a vehicle. In order to be eligible for a car title loan, you must have a clean title to your vehicle. A clean title means there are no liens or judgments against the vehicle. Having a clean/clear title assures the lender that you own the car and have clear ownership rights.
What Information Does a Car Title Contain?
A typical car title may contain the following information. (Keep in mind this is not a comprehensive list and the information may vary from one state to another)
§ The name and address of the owner
§ The date of purchase
§ The make, model, and year of the vehicle
§ The vehicle identification number (VIN)
§ License plate number
§ Any liens or encumbrances against the vehicle
§ Signatures of both the buyer and seller
§ In some states, the title also includes space for odometer readings
How Can You Get a Car Title?
If you just purchased the vehicle from a dealership or private seller, they should provide you with the original title. If they don’t, you can request one from your state’s DMV (The Department of Motor Vehicles). Be sure to carry all required documents when you visit your state’s DMV. The documents you’ll need to provide will vary by state, but generally, you’ll need to provide:
§ Proof of insurance coverage that meets state-minimum requirements
§ A bill of sale or transfer form, if applicable
§ Your driver’s license or ID
§ The current title if you’re transferring ownership
§ Payment for titling and registration fees, if applicable
· Collateral
Collateral is an asset that a borrower offers to a lender as security for a loan. In the case of a car title loan, the collateral is the borrower’s vehicle. However, that doesn’t mean you need to give up your car in order to take out a loan. At Jacksonvilletitle.com, we’ll only hold your car title and as long as you make your payments on time, you’ll continue to have full use of your car.
· Car Condition
Car’s condition is another common term you’ll see when getting a title loan. That’s because your car’s condition helps lenders determine its value and how much money to give you. To assess your car’s condition, the lender will ask their team of appraisers to inspect your vehicle. They’ll consider factors like the year, make, and model of your car, as well as its mileage and any damage or wear and tear. Based on this information, they’ll assign your car a condition rating that will help determine the loan amount.
· Equity in the Car
This simply refers to the portion of the car’s value that you own outright. Equity is determined by subtracting the amount of money still owed on the loan from the car’s current value.
For example, if you own a car outright with no loan, you have 100% equity. If you owe $5,000 on a car that is currently worth $10,000, then you have 50% equity.
The more equity you have, the lower the risk for the lender, and the more likely you are to be approved for a loan.
· Use of Funds
As the name suggests, “Use of Funds” refers to how you are allowed to spend the money from your car title loan. In most cases, there are no restrictions on how you can use the funds as long as you use them for a legitimate purpose. However, some lenders may place restrictions on how you can use the loan proceeds. For example, some lenders may only allow you to use the funds for car repairs or other emergency expenses. Before you take out a car title loan, be sure to ask about any restrictions on how you can use the loan proceeds.
· Car Title Loan Places Near Me: Choose Jacksonvilletitle.com
Got all that? With this knowledge now you can navigate the car title loan process with ease. And if you’re looking for a car title loan that has friendly terms and rates, Jacksonvilletitle.com is the place for you. We offer a variety of car title loan options to suit your needs, so you can get the cash you need fast – without having to worry about sky-high interest rates or hidden fees. Apply for a car title loan with us today!
