Getting a Private Auto Loan With Your Car's Title: Mistakes to Avoid

Getting a Private Auto Loan With Your Car’s Title: Mistakes to Avoid

CTV News recently reported that more Canadians are experiencing credit issues than ever, with 1.4 million Canadians missing a payment in the first quarter of 2025. Fortunately, there are ways out of such difficulties.

For example, Fast Action Finance allows you to borrow up to CAD 25,000 against a clear title on your vehicle with no automatic credit checks or upfront fees. Usually, this is a same-day car title loan approval. However, there are things that could slow down your application, so preparing well can help ensure a smoother funding process.

Below, we discuss six of the most critical mistakes to avoid when securing a private auto loan using your vehicle’s title. Read on to discover how to access the cash you need faster and with more confidence that everything will go smoothly.

Verify Your Title Is Lien-Free

You can only use your vehicle as collateral for a private auto loan if there is no existing lien on the vehicle. If you wish for more information on this specific nuance of seeking out a loan, you may want to consult with a legal expert for more details.

In short, verifying the lien secures the confidence of the lender, in this case Fast Action Finance, and speeds up approval by confirming you completely own the vehicle.

How to Check for Liens

Go to the Ontario Personal Property Security Registration database and then search for your vehicle using its VIN. You can find this in its documentation or in various locations on the car itself.

A clear title will confirm that no third-party claims exist on the vehicle and open it up for use to secure a loan. It may cost a small amount of money, such as $10 or so. However, you should be able to complete it within the hour.

Perform this step before applying for the loan, then keep the documentation on hand for when Fast Action Finance requests it to expedite the process and avoid needing to seek it out later.

You will want to keep these documents alongside other information about the worth of your vehicle to another, such as any historical data on past accidents or salvage records, as these can impact the eligibility of the loan.

Estimate Your Vehicle Equity Accurately

One of the primary factors that determines how much you can borrow is the vehicle’s market value. One of the biggest auto loan benefits of working with Fast Action Finance is that you can generally borrow around 25-50% of the vehicle’s appraised value.

To avoid surprises, use sites such as the Canadian Black Book to research industry-standard values based on the vehicle’s make, model, and year. However, if you hold off on seeking the loan for a short time, seek out a new valuation within 30 days of the application, as seasonal market shifts and other news can cause the price to go both up and down.

If you receive an official valuation, use it when applying to expedite the lender’s review process. However, be aware that they are likely to use their own valuation system.

Take Vehicle Condition and Age Into Account

Make sure to document anything different from when the vehicle came out of the factory, including:

Dents
Paint chips
Mechanical issues
Tire condition
Engine bay cleanliness
Vehicle cleanliness

You should also obtain a report following a mechanical inspection from a certified facility. Doing this will allow you to certify its roadworthiness, helping you secure a higher loan.

Be aware that Fast Action Finance also has limits on the mileage and age of vehicles, except in the case of borrowing specialty or collector vehicles. Lower mileage vehicles are more likely to enable you to source a higher loan due to the lower likelihood of issues that have slowly developed but are invisible until they cause an issue.

Compare Car Title Loan Rates for a Private Auto Loan in Ontario

Make sure to do your research when it comes to car title loan rates. Fast Action Finance offers a very competitive rate, especially for same-day car title loans. You should also discuss these rates with Fast Action Finance to determine whether they are fixed or variable, to help you anticipate potential payment changes throughout your repayment.

Read Your Loan Agreement Carefully

Make sure to read through your loan very carefully. Canadian title loans are well-documented on Fast Action Finance’s website, and their blog contains extensive details on what the requirements are for you to take out a loan.

However, when you apply, you will receive the most up-to-date documentation possible. Make sure to carefully look through these for things like:

Prepayment terms
Grace periods for missed payments
Automatic renewal terms
Minimum payment requirements
Interest accrual rates

You can then set up your finances to handle these expenses and help you calculate how to organize your finances in the long term.

Prepare Your Car Title Loan Application

Assemble all the necessary documents before completing the online application for a Fast Action Finance loan. These will include:

Valid Ontario driver’s license, passport, or government-issued photo ID
Utility bills or bank statements within 30 days
Collect your social insurance number for identity verification
Vehicle title and insurance documents

Borrow Only What You Need

Make sure to calculate only your immediate cash requirements, including potential emergency expenses, compared to your current funds and capabilities, and only borrow this much. You should ensure you give yourself the best chance of repaying it as possible, and limit your loan size to maintain the feasibility of repaying it as fast as possible for your own financial security.

Final Steps to Secure Your Title Loan

Make sure to confirm that you’ve completed each of the above steps to ensure you seek a private auto loan while avoiding both delays and unexpected developments. With the exact cash you need to borrow with car financing, you can then handle your debts more swiftly while avoiding unexpected costs.

We provide loans that we can often guarantee on the same day, and our website offers detailed expertise to help you get your cash today, right when you need it. So contact us to a pply today with confidence and move forward knowing you have the best deal possible.