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Accessing Cash – What Is the Best Way to Get a Loan With Your Car?

Managing finances can become a tricky situation for anybody, especially when you need money quickly for an unexpected event. However, finding the right type of loan means you must learn about other options like car title loans.

Understanding how to get a loan with your car can help you bridge the gap when you need it the most. You’ll also feel much less overwhelmed during the process and confident you’ve made the best choice for your financial situation. 

Read on to learn everything you need to know about getting a loan with your car and securing the fast approval you need.

What Is a Car Title Loan?

Car title loans or vehicle equity loans allow you to use the value of your car as collateral. The collateral allows you to secure a loan from a lender which must be paid back over a specific period, ranging between twelve months and three years. You must pay off the entire loan amount over the agreed-upon period.

Car title loans are a good option if you’re looking for bad credit loans since the value of your vehicle and ability to pay are looked at the most. Your car also provides the lender with collateral, so it’s a smart option if you don’t have a high credit score.

One of the biggest advantages of a car title loan is that you still keep ownership of your car and can use it normally throughout the entire loan term.

How Much Can You Borrow?

In most cases, you can borrow at least half of your vehicle’s value. So, if your car is worth $16.000 you’ll be able to borrow around $8,000. Some lenders will put a limit on how much you can borrow, so make sure you understand the limits during the application process. Also, different regions result in different percentages offered. As an example, if you live in a major city you can get up to 50% of your vehicle’s value, and if you live in a remote area the percentage will be less, and in some cases the loan will not be approved. Then there is the amount of kilometers on your vehicle. This can reduce the percentage given and even make your vehilce ineligible.

Lenders like Fast Action Finance allow you to borrow up to $25,000 with no upfront fees and on extended payment plans. However, the amount you can get from a car title loan in 2024 can vary based on certain factors, so it’s essential to understand what to expect before applying. 

These factors include: 

Title Loan Amounts

First, the exact amount you can get depends on how much your vehicle is worth. The lender will inspect your vehicle and go through a checklist to determine your car’s value.

Your lender will need to know about things like previous repairs and whether or not the car has a lien. In addition, the make, model, year, mileage, VIN (vehicle identification number), and overall condition are taken into consideration.

Remember that even if your car is older, you can still get a good value if the mileage is low and it’s had regular maintenance and repairs. You can also make simple repairs like fixing dents and rust spots, glass cracks, and upgrading tires before taking out the loan.

Even if you’re in doubt, it’s still worth checking with a lender about the value.

Interest Rates and Loan Terms

While you should be able to find flexible repayment options and interest rates that meet your needs, it’s essential to understand the details as you apply.

In most cases, lenders will talk to you about interest rates and loan terms before anything else. Don’t be afraid to ask questions if you don’t understand the interest rate or any aspect of the loan term.

Application Process 

Since most lenders allow for a quick online application process, they should also let you know exactly what documents you need and the best way to apply.

Don’t forget that reputable lenders will make this process as easy as possible while making sure you understand what you’re borrowing.

How Do You Qualify for a Car Title Loan?

You need to have certain documents to qualify for a car title loan. There are also other need-to-know factors to be aware of which include:

You Must Be 18 and a Canadian Citizen

First, you need to be at least 18 years of age and be either a Canadian citizen or a permanent resident. You must have an ID like a driver’s license or passport with your current address, date of birth, and photo.

You Must Have the Ability to Repay the Loan

You must prove your ability to repay the title loan. Proof typically involves paystubs or something that shows you have enough income coming in to pay off the loan.

You Need to Own Your Car Outright

Overall, you’ll typically need to own your vehicle outright, but it’s best to check with the lender if you have different circumstances. For example, if you use your car as your own, but the vehicle is actually registered in someone else’s name, you won’t be able to get a title loan in your name.

However, if the person is willing to co-sign the car title loan with you, the lender can take this as permission to accept the car as loan collateral. If you have questions about ownership, make sure to find a reputable lender and ask as many questions as you need to.

Remember, you must prove ownership to the lender by providing documents like insurance and vehicle registration.

You Don’t Need a Good Credit Score

Keep in mind that car title loans don’t require a good credit score or established credit. With a cat title loan, you have options regardless of your credit history.

If you have poor credit, a car title loan is one of your best options since you’ll have access to a set amount. 

If you’re not sure, talk to your lender about your credit first and find out if they have a guaranteed approval process. 

Get a Loan With Your Car Today

Get a loan with your car today by contacting Fast Action Finance. We began helping people in the Toronto area in 1997, and are now one of Ontario’s longest-running car title loan companies.

In addition to car title loans, we also offer options like motorcycle storage loans which include snowmobiles and watercraft, collateral loans, and e-loans. We strive to make the loan process as easy as possible and you’ll typically have cash in hand within hours after applying.

We look forward to working with you, so be sure to contact us today to learn more about our personalized auto title loan services and find out what works best for you!