Getting a Car Title Loan

It is no secret that cars are among the most significant purchases and pieces of property that American adults make in their lives. Cars are often expensive and require financing in various ways, and are sometimes available for lease. Buying a car is in fact often a personal milestone and a point of pride, but as with any major financial investment, cars should be handled responsibly, and for some new car owners, certain financial strategies are essential for being able to afford them and not get them repossessed. Among other services, Cash Time title loans are an option for car owners who have need to get money fast to pay off their car and pay the loan back whenever they can. Where to get a loan? How to get a loan? What are the risks and payoffs? These are some questions for any new car owner to ask and answer when he or she is tight on money and has immediate payments to handle. Done right, Cash Time title loans and other loans can be useful for the car owner.

Rates of Borrowing and Debts

It can be argued that American society is one of borrowing and debts of all kinds, and a lot of this is for car loans, big and small. As of now, a record-breaking total of 107 million Americans are paying off auto loans of some kind or other, and as of the year 2017, Americans in total owed $568.6 billion in their car loans, over half a trillion. In fact, 44% of all American adults are making use of auto loans so they can pay off their vehicles. And out of the total American debt balance, 9.03% of it goes toward auto loan debt. As for why Americans are taking out loans overall, the most common reason is vehicle expenses (31%), paying bills (26%), and personal emergencies (21%).

Among car loans such as title loans, it has been determined that the average auto title loan from places like Cash Time is $1,000, and the money is secured by a borrower’s car title. The average amount for a new car’s loan in the year 2017 came out to $31,099, and even for much cheaper cars purchased, such as used cars, a title loans such as Cash Time title loans may be needed. How does it work?

Cash Time Title Loans

According to Nerd Wallet, car title loans may offer anything between $100 and $10,000 for the borrower, and the lender will take the car owner’s title as collateral for that loan. This makes it a type of secured loan.

Someone who wishes to get a car title loan will visit the building and have their car and its title with them, and apply for the loan. There, the lender may assess the car’s total value and their loan will be based on a percentage of that car’s value. The average for such a loan is close to $1,000. The loan process may be completed in as little time as half an hour, and the lender will keep the car owner’s title as long as the debt is outstanding. Single-payment title loans are one option, where the lender will pay back the loan within 30 days at once and deal with an APR averaging 300%. Installment loans can be made in several installments, hence the name, and take place over three to six months, and the APR for such a loan may be close to 259%. Credit card checks and proof of income are generally not required for such loans.

The borrower must be sure that his or her finances are in good shape before taking out such a loan, since most car title borrowers end up renewing their loan several times, and a cycle of debts may emerge if the borrower is not careful, and fees are bound to appear every time a loan is taken out. If the debt is not paid on time, the vehicle may even be repossessed, a possibility that some borrowers may want to consider ahead of time.