Auto Equity Loans Online
When you need money fast but bad credit is preventing you from accessing the cash you need, an online auto equity loan could provide the solution you need.
If you are not familiar with an auto equity loan, the process is fairly straightforward. Just as you can tap into the equity in your home to take out a loan, you can do the same with your vehicle. An auto equity loan functions as a type of secured loan allowing you to use your vehicle title as security or collateral for your loan. When taking out an auto equity loan, you will allow the lender to place a lien on your vehicle title. You will also surrender the hard copy of your vehicle title temporarily to the lender in exchange for your loan. Once you have repaid the loan, the lien on your vehicle title will be removed and your title will be returned to you.
You should be aware when considering an auto equity loan that these loans are typically short-term in nature.
What Is an Auto Equity Loan?
Online auto equity loans can present a number of advantages, particularly if you have bad credit. Lenders do not usually check the credit history of applicants for auto equity loans. Instead, they consider the condition and value of the vehicle being used to secure the loan. Naturally, the lender will want to ensure that a borrower will be able to pay back the loan. Along with verifying the value of the collateral, a lender will also need to verify that the applicant is either employed or has some other source of regular income.
The maximum amount of an auto equity loan is typically based on the value of the collateral. Lenders will often offer up to half of the resale value of the vehicle, although this may vary from one lender to another. Auto equity lenders often use the standard Kelley Blue Book to determine the resale value of the vehicle. To be eligible for an auto equity loan, borrowers usually must have a clear title to the vehicle in question. This means the vehicle must be paid for in full. There must be no current financing or any other type of lien against the vehicle. Lenders will also usually require that the vehicle have full insurance. In cases without a clear title, contact Platinum Lending for other options for auto equity loans without clear title or no title.
Online auto equity loans can often be completed in just a matter of minutes. While most other financial institutions may require days to process a loan application, that is not the case with an online auto equity loan. The application itself can often be completed in about 15 minutes or less and if the applicant is approved, the loan can be funded within 24 hours.
In the event the borrower is not able to pay back an auto equity loan or he or she is late with the payments, the lender does have the right to repossess the vehicle. Most lenders use this option as a last resort due to the fact that it can take so longer to recover the vehicle and sell it. Furthermore, necessary court costs decrease the amount the lender is able to recoup. Instead, many lenders will offer the option to refinance the loan if the borrower experiences a situation in which the loan payments are no longer affordable.
How to Get a Car Equity Loan
The process of applying for an online auto equity loan only takes a few minutes to complete. When applying online for an auto equity loan, you should be prepared to provide the following information:
- Date of birth (must be at least 18 years of age)
- Email address
- Primary telephone number
- Employment status
- If employed, name of employer and work telephone number
- Gross monthly income
- Other income sources
- Make and model of vehicle
- Year of vehicle
- VIN number
With this information, the lender will usually be able to provide you with an estimate for your loan amount.
Different Types of Vehicle Equity Loans
Prospective borrowers considering taking out auto equity loans should be aware that there are different types of loans.
Today, it is much easier than ever before to take out an auto equity loan because such loans can be conducted online. For prospective borrowers who have an urgent need for cash or who are pressed for time,
Online title loans with no inspections are sometimes required for auto equity loans. This is usually the case when applying for a loan in person at a financial institution. The lender may inspect the vehicle to ensure it is safe to be on the road, the vehicle title is in the name of the borrower, and the vehicle has an insurance policy. The lender may also verify that the vehicle is completely paid off and is in good condition. Physical inspections of the vehicle itself may be performed to determine whether the vehicle has been involved in any type of serious accident, whether it has been modified in any way that would prevent it from being street legal and whether there are any noticeable blemishes that would decrease the value.
Inspections are not always necessary for vehicle equity loans, however. Online lenders may not require a physical inspection of the vehicle. Instead, they will ask the borrower to complete forms that will provide necessary information, such as the make, model, year, and general condition of the vehicle. Other required information may include insurance policy information, proof of income, and that the title is in the name of the borrower. Additionally, the lender will need to verify that the borrower is at least 18 years of age.
How Can Auto Equity Loans Be Used?
One of the most common questions that many people have when considering an auto equity loan is how the loan proceeds can be used. Unlike a loan from a standard bank, auto equity loans can be used for virtually anything. Borrowers may be able to simplify their other debts by paying off debts and taking advantage of a single monthly payment. Another common use of this type of loan is to handle unexpected expenses. Some borrower opt to use their loans to make a large purchase or simply enjoy the flexibility and convenience of having a little extra money.
There is sometimes a common myth that in order to benefit from an car equity loan, you must be in a desperate financial situation. This is not at all the case. You do not need to be in dire financial straits to take out an auto equity title loan. This type of loan can be advantageous for individuals who simply wish to make the most of their current financial situation.
Some people may believe their vehicle is too old or it has too many miles on it to have any real value or equity, so they hesitate to take out an auto equity loan. Vehicles are retaining their value for far longer today than in the past. Therefore, it’s entirely possible that a vehicle could still have enough value to provide the basis for an auto equity loan even if it is older or has a lot of miles.
Prospective borrowers should also be aware that while the lender will often hold onto their vehicle title during the loan period, they can typically continue driving their vehicle while paying back their loan. Most lenders are able to accept not only passenger cars and trucks as collateral for equity loans but also recreational vehicles and motorcycles. This could differ among lenders, so borrowers should check in advance.
The length of an auto equity loan will depend on the agreement made between the lender and the borrower. Lon terms can range from a few months to a year or more. Many lenders will allow borrowers to pay off an auto title loan early without incurring an additional fee for doing so, but this is typically on a case-by-case basis so it is important for borrowers be sure they are aware of all of the terms of the loan prior to signing the agreement.
Vehicle equity loans can present a number of advantages, including:
- Access to cash quickly
- Ability to be approved for a loan regardless of bad credit
- Loan proceeds can be used however borrower wishes
- A relatively small loan that can be easier to pay back
Overall, consumers who are experiencing difficulties in finding a loan elsewhere due to bad credit or who need cash quickly may find that an auto equity loan is a good solution. The ability to apply online for an auto equity loan can help borrowers to save time and avoid the need to take off from work to complete their loan application. An online application also usually speeds up the loan process, which means borrowers can often gain access to the cash they need quickly. It is important for borrowers to ensure they have a free and clear title to the vehicle they wish to use as collateral for their loan.