Today, numerous options exist for consumers looking for cheap ways to borrow money. However, one of the main problems affecting borrowers is the fact that bigger amounts are harder to access than smaller ones. This is because some of these agreements require the California borrowers to have a good credit history-which many of them do not have. This is where an vehicle ownership loan comes in.
Car title lending (also known as “ownership pawn” in some states) is simply a type of secured borrowing where individuals can use their car ownership as collateral. Before acquiring the money, the borrower must allow the lender to place a lien on his/her vehicle entitlement and also surrender the hard copy of the vehicle ownership temporarily in exchange of the agreed amount. Once everything is repaid, the lien is removed and the vehicle ownership is given back to the owner. In unfortunate cases where the borrower fails to pay, the lender has the right to repossess the car and sell it in order to recover the defaulted amount. Auto title loans (http://sandiegocarautotitleloans.com/) are basically suited for consumers who do not qualify for other financing options.
Unlike other lending options in San Diego, auto title loans carry higher interest rates as they are typically short-term.
Auto Title Lending Requirements
For you to acquire an auto title loan, you need to meet various requirements. As a borrower in San Diego, you will need to bring the vehicle and the necessary paperwork to the lender for verification. Although you can easily apply online, the lender may still need to check whether the vehicle is in good condition and whether you have the complete paper work before releasing the money.
To acquire the loan in California, you must be the legal owner of the car. In this case, the lender may require you to present various documents such as:
- The original vehicle proprietorship showing that you are the sole owner
- Government-issued identification matching the name on the vehicle proprietorship
- Current vehicle registration
- Utility bill or any other proof of residency matching the name on the entitlement as well
- Proof of vehicle insurance
- Proof of ability to repay-such as recent pay-stubs
- Names and contact information (phone number, physical address, and email)
- Working copies of the vehicle’s keys
It’s important to note that some lenders also require a GPS tracking device installed in your vehicle for easier tracing in case the borrower defaults on payments.
Rates and Fees for this kind of Loan
Interest rates vary from state to state but all the same, auto title options are considerably much more expensive than other types of borrowing. In states where the interest rates are not capped, they come at 30% per month or 360% annually. Most lenders also charge a lien fee of approximately $25 to $30 while others in states where automobile proprietorship loan lending is not regulated charge document fees, origination fees, procession fees, and key fees. It’s therefore important to add up the fees in order to figure out the total costs involved.
Although this may be slightly more expensive than a traditional loan, you get your cash very quickly. This whole process can take less than an hour for you to walk out with cash in your pocket. All you have to do is take your automobile in to get it inspected. This way the company loaning the money out knows that you are actually in possession of the vehicle and get everything transferred over to you.
When you’re applying for a quick cash, then you will have to also expect to pay the fees afterwards but it does matter which kind of application you choose because the rates for the payments may vary with the value of your automobile. Some people think that all of these financial assistance are the same, which is not the case most of the time. Your car value has a lot to do with your payment rate as well as your credit score to a certain extent. Although you don’t need to worry as most of these loans are very attainable with very reasonable payment rates as long as your vehicle is not totally a wreck.
According to experts, an car ownership loan is most suitable for someone who understands its cost and has the expectations of repaying everything before the repayment period expires.