Ontario Car Title Loan: Does Vehicle Type and Brand Matter?

In summary:

Both the vehicle type and brand can influence the value of your vehicle’s equity when seeking a car title loan.
Lenders in Ontario often reference the Canadian Black Book as a benchmark to ensure consistent valuation.
Fast Action Finance can quickly review your vehicle’s equity, often within the same day, and approve funds promptly.

As the type and brand of your vehicle matter a great deal, it is usually smart to be aware of the typical price of your specific car. However, if you want to get a loan using your vehicle, many other factors also influence the decision on how much to lend.

The plethora of different variables includes:

Make
Model
Mileage
Body style
Options
Trim
Ontario demand (for example, winter SUVs)

As Canada also has a unique high residual value on vehicles, owners tend to be able to resell cars for a considerable amount, regardless of the make and model. Doing this can be especially beneficial for those with more valuable vehicle makes. When it comes to auto financing tips, we recommend that you investigate all the options to understand what you can expect, gaining a more realistic understanding of what Ontario car loans can offer you.

How Much Equity Is in My Car?

Your vehicle’s equity translates to how much it is “wholesale”, as in from the garage, reduced by how much of a stake another person or business has in the vehicle. If you have not yet paid off the car, this can result in your vehicle valuation being significantly lower than you expect.

Therefore, ensure that you utilize the online registration systems provided by Ontario’s government. Using this, you can check whether your vehicle does not have an existing lien against it.

One of the advantages on your side, however, is that Canada’s average vehicle age is significantly lower than that of many other countries. You can therefore expect that your make and model of car is likely to be worth a little more if it’s younger than you expect.

What is the Most You Can Get From a Title Loan?

Valuation of higher-value vehicles due to their make, model, and history can often offer a strong loan. However, you may find that other unique elements make them even more valuable.

The brand influence on loans should also not be underestimated. A powerful brand can often offer significantly higher returns, especially when it experiences an uptick in popularity, due to its much higher resale value.

At the same time, certain specialty trims or specific body styles unique to your make and model may also support an even higher loan ceiling.

Regardless of what you are offered, however, only borrow what you believe you may need. Try to keep payments comfortable and flexible, allowing you a little freedom should you need it to ensure your repayments are made in a timely manner.

Improve Your Offer Without Changing Your Car

Make sure to gather all the necessary basics for a loan well in advance. These include:

Ownership documents
Insurance details
Government-issued ID
Maintenance file
Service records
Interior photos

Ensuring that you have all these elements in place makes the whole process much faster, helping to streamline the human component of the loan approval process. If your vehicle’s history is particularly complex, however, you can add a brief note to help clarify.

You should also wash and declutter your vehicle. Any lender examining a very tidy car will be less critical about its state and whether it requires maintenance. As such, a vehicle in better condition can help to retain your equity.

When it comes to the photos you take, ensure that they are comprehensive as well. While you only need to pass along around ten photos that have the most details in them, you may want to take other pictures in case the lender asks for more information.

Frequently Asked Questions (FAQs)

Does a Title Loan Hit Your Credit?

While concern about your credit is understandable, many title loans are not reported in the same way. As such, you may find that, regardless of your credit, you may be able to seek out loans from many venues. However, policies will vary, specifically by lender and unique circumstances.

Regardless of your credit report, however, a lender may still perform a more in-depth query. If they do, your car title loan may still appear.

Why Does Mileage Significantly Affect Car Value?

Yes, a vehicle that has travelled significantly fewer kilometres during its lifetime will have had fewer chances to experience wear and tear. Such potential for retention of car quality can impact your equity more than you might expect. If you have a vehicle that exceeds the norms for its age, you may find the opposite.

In Ontario, the average distance travelled per year is around 16,000 km. Use this knowledge to adjust your expectations accordingly.

How Do I Find Out What My Car is Worth?

Begin by checking the Canadian Black Book’s wholesale values for vehicles. Then, use these to set your own expectations before you seek out a specific equity.

It is usually also advantageous to use your VIN to determine various other details about your vehicle, including:

Comparisons with other Ontario listings you can find
Ontario Usage Vehicle Information Packages (UVIP)
CARFAX Canada vehicle history reports

When you collect all this information, keep hold of it. In some cases, you may be able to use it during an application if it is beneficial to you.

Find a Car Title Loan Provider You Can Trust

After confirming your car title loan equity with a wide range of information, get all your necessary documents and prepare for a swift loan application. Here at Fast Action Finance, you can receive up to $25,000 Canadian advanced to you quickly. We don’t even require a GPS or spare key.

So, use our eLoan option to get the entire process started quickly, or contact us to learn more today. As one of the longest-established title lenders in the region, what have you got to lose?