Car Title Loans: Things You Should Know
When you get a loan you take your title and your vehicle to the company and they will search and find the blue book or market value of your vehicle. Then they will give you a loan at a value less than what the vehicle is worth. They do this incase you default on your loan, and then when they are in possession of your car they can sell it for a profit. They will charge you an interest rate on your loan, when you do the math on the loan you will see that it's a really high interest rate. The rate is usually a few times higher than what a bank would charge for a loan.
When you make payment they can be set up to be monthly payments or one lump sum payment. You usually can't have more than a few months to pay for your loan. Some places may allow you toe extend that loan which will cost you more money to do that.
Missing a payment can allow them to come and take your car from you. When you sign up for the car title loan you will sing papers stating that if you are lat by so many days they can take the car into their possession. If this happens there will be additional fees that will make the total that you will owe to get the vehicle back very expensive. This should all be written out in the agreement which you should pay special attention to before you sign the title over to the company.
The car title loans are about as expensive as a payday loan. If you had no other choice and had to choose between the two of them you may be better off opting for the payday loan, at least that way you wouldn't lose your vehicle which may be the only way back to work for you. Always use caution when dealing with companies like these that charge high interest rates and signing over your property.
Published by Sunshine Red
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3 Comments
Post a CommentIgottwotitleloansonthesamevehiclebecausethedmvneversentonetitleloanstoremytitle.imneedofmoneyigotanotherloanwiththetitle,thereforeigottwoloansonthesamecar.Somyquestioniscantheytakemycartechnically?theydonthavemytitletodoso,iswhatimthinking?
I got two title loans to help pay my mortgage this is going on 3 years now that I am paying on them and I can no longer afford to pay these it is only going to interest only and it is killing me financialy, I took the title loans out with out my husband knowing (stupid) I know. is it legal to lend money with out two people who own the property to knowing about the loan? Please help and is there a statute of limits on how long they can collect from me on just interest?
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