When people need money fast for an economic crisis, they take out two distinct sorts of automobile loans. The distinction between the two loans is important to comprehend if you want to make correct borrowing choices. The answer can be found in how each one of them works, but let’s break it down for you to make sure there are no misunderstandings.
Who Has the Vehicle’s Title During Financing?
A Car Title Loan typically involves borrowing money against your vehicle (and its equity) instead of selling it outright. This means that if you have bad credit or need cash quickly, this may be your best option because they don’t require collateral like other lenders do – making approval easier!
A car pawn loan is not the same as a vehicle title loan. Rather than handing over your automobile and title to the lender, you leave it with them. Your automobile is kept by the pawn shop until you pay back the money.
This may apply to any sort of loan, and it’s extremely likely that they will not offer you the full resale value on a pawn loan. Rather, they approve you for a percentage of the vehicle’s worth, based on the condition of the automobile and how much money you can afford to pay back, which is generally set at wholesale values.
Car values decrease the older the vehicle is or when it is in poor condition so don’t expect to get a huge amount for older vehicles or vehicles in poor condition. If you have an older vehicle or one that is in poor condition, it is highly recommended to contact the lender directly and ask if you can use it to get a pawn loan.
When deciding between Car Title Loan and Auto Pawn Loans, consider the implications before making any decisions, for example don’t expect to get a pawn loan and drive your car home. An auto pawn loan requires you to leave your vehicle at the pawn shop until it is repaid.
Instead, once you’ve obtained a Car Title Loans, you can drive your car worry-free, and you don’t have to sit through a credit check (only the amount of equity in your automobile is considered)
Title Loans are a great way to get cash quickly and easily! You can apply for one online in minutes. The process is fast, simple, and has never been easier than it is now. With so many options out there, what’s the difference between them all? Here at Capital Title near Quincy, FL we offer loans that fit your needs and budget no matter how big or small they may be.
Are you ready to discover how Capital Title can help you? Simply fill out our online loan application now and one of our title loan experts will contact you. You may also reach us directly at (850) 297-2274 or (850) 219-2274 if you have any questions.