How Do Title Loans Work?

Car loan words at laptop

If you need funds right away and don’t have any money in the bank, a title loan might just make sense. They do come with a few risks, but they can also help you get capital fast.

How Do Car Title Loans Work?

A car title loan essentially borrows against the equity in your car. In most cases, you’ll need to have paid off any other loans used to finance the vehicle, but some lenders now let you borrow if you’re still paying off the standard auto purchase loan. In general, you can expect to get anywhere between $100 and $5,500 for a car title loan. Where you fall on that dollar scale will depend on both the value of your car and the amount of equity you have in the vehicle. The greater the value, the more you can borrow, but keep in mind that you shouldn’t expect the car’s full value. Most lenders offer between 25 and 50 percent of your car’s value.

How Do You Pay a Car Title Loan?

Title loans are almost always short-term loans that are repaid within just 15 to 30 days, which means you’ll have to come up with the funds for a quick and complete repayment, often referred to as a balloon payment. You’ll sometimes be allowed to extend repayment by rolling over the loan. This means getting a brand new 30-day loan. Interest rates tend to be competitive at first but rise sharply when you roll over.

Alternatives to Car Title Loans

Title loans can be a great way to raise money fast, but you should also consider:

If you need a personal loan, the team at Xpress Cash can help.

Contact Xpress Cash About Title Loans and Other Financing Options

Whether you want to learn more about the difference between title loans and auto equity loans or start moving forward on a title loan, contact Xpress Cash today. We have branches across Michigan, Wisconsin, and Idaho, so feel free to drop by your nearest location.