Auto title loans can be obtained through specific loan services that help consumers meet their low cash flow needs. Typically auto title loans will allow the consumer to work with a price that is equivalent to or less than what your car is worth. Before an auto title loan can be processed, most loan services require a checklist of things before they can proceed with your application.
- The title of the vehicle you currently own or the lien release if your car is being leased.
- Proof of insurance: If a consumer borrows more than $2,500 they must adjust their insurance policy where it includes full coverage on the vehicle and $1,000 deductibles for comprehension and collision claims.
- Registration for the consumer’s current vehicle.
- A state issued identification card or driver’s license is mandatory.
- A current utility bill, home phone number, or any piece of mail that has been received within 30 days or less that has the address of your current residence.
- A current bank statement or paystub
- A spare key to your current vehicle
- While most auto title loan services require references, not all will request the same amount of references. On average it is required to have five references that include three friends and two family members that are not currently living with you.
- The consumer must bring their current vehicle in for an inspection.
- For consumers who wish to have their loan processed the same day it is required by most companies that provide auto title loans require that you are at their office no later than an hour to two hours before closing time during the week as most loan companies are not open on the weekends.
Programs for auto title loans work unlike any other loan company. After sitting down with a representative from an auto title loan service company typically the consumer and representative will have come to a loan amount that is acceptable for both parties. This loan amount depends on the wholesale value of your current vehicle. Once this agreement has been made the consumer will sign prepared loan documents that follow the rules and regulations of the state they live in. A copy of these rules and regulations are available at these loan servicing companies. It is important to obtain a copy and read them thoroughly so you are not blindsided by certain terms and requirements of the loan itself as it pertains to state laws and regulations. Before signing the loan agreement it is imperative that you ask all of your questions so you are fully aware of the situation you are getting into.
For the duration of the contract term, the consumer is required to pay for maintenance on a regular basis as well as auto license fees. It is also required in most states that the consumer carries the minimum amount of insurance coverage on the vehicle. Depending on the amount of the loan, auto title loan companies may require you to carry comprehensive insurance as well. The company who handled your car title loan will be the policy loss payee.
When all documents for auto title loans are completed the consumer is given a copy of all paperwork that has been signed. One form a consumer will sign is the power of attorney document which requires that the company is placed on your vehicle title as a lien holder. The company will then retail all lien documents until the loan is completely paid off. Once the loan is paid off, all documents will be notarized to show lien satisfaction.
For those experiencing cash flow problems this is a great way to get the extra cash you need. Auto title loans are not common as most people do not even realize that this is an option. Knowing that this option is available can make a world of difference to many people across the country and having that extra money in your pocket will make for a sigh of relief.