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Standard Car Title Loan Terms

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Standard Terms Used in Auto Title Loan Documents

We want our customers to be as informed as possible about the typical structure and terminology of typical auto title loans. While the wording and setup of loans vary from lender to lender, and from state to state, there are some common definitions that should be understood by any potential borrower.

Most people already understand the general way loans are structured, but have questions about a few specific topics, like:

  • Can I use the funds any way I want?
  • How long do I have to repay?
  • Can I repay earlier than scheduled without a penalty?
  • And others

Communication between lenders and borrowers is vitally important, so we strive to help our auto title loan clients understand how loans work in general. Feel free to contact us anytime with questions you might have about this topic. We are always glad to help explain the process and make things as clear as possible.Terms of car title loans

So, what are the standard parts of an auto title loan contract?

What Does a Typical Loan Look Like?

Like many other types of loans, auto title loans typically contain things like interest, a repayment period, sometimes a co-signer, and other aspects of standard loan agreements. The list below highlights the terms you will encounter when getting an auto title loan from us. Of course, the following list is just an example of the most common terminology used, so don’t worry if you encounter other terms within a complete loan agreement.

  • Interest: This is the fee that lenders charge their customers who borrow money. Along with the principle (the amount of money borrowed), interest must be repaid. In LoanMart’s case, interest is evenly divided into the monthly payments as long as payments are made on or before the due date. (See Amortization, below).
  • Fund Use: Depending on the type of loan and the lender, there can be restrictions on how loan proceeds are used by the borrower. For LoanMart auto title loans, there are no requirements about how borrowers spend the money. Of course, it is always advisable to spend responsibly.
  • Repayment methods: Lenders sometimes require very specific methods of repayment, like automatic bank deductions or payments by credit card. At LoanMart, we make the process simple for our clients by offering various payment options such as walk-in payment, mail, paying online or over the phone.
  • Repayment period: The agreed time period within which a borrower can repay the loan is called the repayment, or payment period. It is usually stated up front in loan documents.
  • Amortization: A way of calculating the value of each loan payment over the life of the loan. LoanMart car title loans are fully amortized, meaning each payment is for the same amount of money.
  • Collateral: Any asset a borrower pledges as security for a loan. Naturally, auto title loans use vehicle titles as collateral.
  • Co-signer: Anyone who signs a loan agreement along with the primary applicant is a co-signer. The co-signer shares the same responsibilities as the primary applicant throughout the life of the loan.

Every Loan is Unique

Even though auto title loans contain much common terminology, keep in mind that each loan is unique, based upon a particular borrower’s financial situation, vehicle value, ability to make monthly payments and several other factors.

Get Your Questions Answered

If you have any questions about the definitions or want more information about how auto title loans work, just give us a call at 928-615-9458. Our LoanMart agents are available Monday – Friday 8 a.m. – 9 p.m. PST and Saturday 10 a.m. – 6 p.m. PST and ready to answer your questions, and you can begin the process whenever you are ready.



Unethical Lenders

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Avoid Working with Unethical Lenders

HandshakeWhen people are looking for a way to get money quickly, they may have a tendency to overlook some potentially harmful aspects. If you’ve been turned down by traditional bank lenders in the past, you may feel anxious to just accept the first willing lender. That is exactly what predatory lenders are hoping for. LoanMart encourages financial responsibility with our borrowers and we hope you’ll heed this advice we have when looking for an ethical lender.

At LoanMart, you don’t have to worry about us trying to confuse you with legal jargon or misleading words. Our success depends on the financial responsibility of our customers. We encourage our customers to be wise when looking for help.

LoanMart’s loan agents work diligently to help customers through the process. We don’t want you taking out a loan that is too much for your financial situation. We estimate your ability to repay the loan by considering your income. Your vehicle’s market value is also used to determine the amount you qualify for. That helps to ensure you don’t exceed your budget with an excessive loan.

Unlike most auto title loan lenders, LoanMart strives to offer the best customer service by fostering relationships with our borrowers. Our loan agents are here to help you through the entire life of your loan. We will answer any questions we can, which is often not the case with many lenders.

It is wise to get as much information as you can before accepting a lender. Knowledge is power, especially concerning matters of finance.  Look around for the most reputable lender. We’re sure that you’ll agree that we top that list. You want to make sure that you work with a lender that serves you best.

Be Aware of Excessive Interest Rates and Fees with Auto Title Loan Lenders

One of the biggest problems auto title loan borrowers run into is egregious penalties associated with loan terms. Many auto title loan lenders will charge their customers large fees for paying their loans back early. That’s right, they will charge you for being financially responsible.

Avoid unethical car title loan lendersThat’s why LoanMart is different. Borrowers should never be penalized for being fiscally wise. Paying your loan back early or paying more than the minimum amount is a good idea for virtually any borrower. You can save some money by doing so too. With LoanMart, there are no penalties for paying your loan back early or paying more than the minimum payment.

People seeking loans should make sure their lender is being clear about the interest rate they are going to be charged. Many lenders will state interest rates that don’t apply to the terms of the individual’s loan in order to mislead people. You should be certain your lender is upfront about your interest rate and clear on any potential penalties that may apply.

Some lenders will do anything to get you to sign an agreement. We believe in being honest and forthcoming with our customers and they appreciate that. LoanMart encourages you to ask questions about your loan so that you can be as informed as possible. Our loan agents will go over the entire process with you and are happy to answer any questions you may have. Don’t be taken advantage of. Stay away from lenders with questionable tactics.


Car Title Loan Considerations

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What to Consider When Shopping for an Auto Title Loan

When you are facing a tight budget and you need a source of money to get over the hurdle, an auto title loan provides a great opportunity.1 An auto title loan uses your vehicle as collateral for your loan, which means that customers who own a vehicle already possess the largest factor in being approved.

If you have tried to secure funding through other lenders and loan types but have been turned away due to your credit history or your specific need for money, auto title loans are a great way to potentially get the help you need.1 cart tile loan considerationsAuto title loans are unique, as they offer:

  • A fast source of money for qualified customers
  • Early repayment of the loan without penalties or fees

With other lenders and loan types, these benefits are not always granted, making an auto title loan well worth the time to research.

Just because the market for auto title loans is getting better does not mean there aren’t still some sharks out there. Here are some initial factors to consider when shopping around for an auto title loan:

  • Does the company offer customer support?
  • Do the loan terms best fit your needs and payment ability?
  • Is the company reputable in the local community?
  • Can you make early payments on your loan without penalties or fees?

All of these factors should play a role in your search for the right company, as they will help you get the best loan possible from a company that works with you from start to finish.

LoanMart has a firm belief in providing superior services and support in order to nurture lasting relationships within the communities we serve. It is important to us that our customers fully understand what is available to them, and that they have all the information they need to move forward with confidence. Some other companies do not provide the comprehensive support and unique benefits that LoanMart considers standard, which is why we want to inform people about the benefits of securing an auto title loan from a positive company.

We encourage you to do more research on your own, and to explore our website to learn more about the specifics of what we offer our customers. An auto title loan can be great for those in need of immediate financial support.1 However, make sure you do your homework ahead of time to ensure you choose the best company for your needs.



Choosing Which Vehicle to Use for Your Car Title Loan

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How to Choose Which Vehicle to Use for Your Auto Title Loan

When you are facing a financial challenge in life, auto title loans provide a great source of emergency funds so that you can stay ahead of the curve. With an easy filing process, comprehensive customer support and flexible loan term options, there is a lot to benefit the customer.

However, before you get started with filing there is an important item to consider. The answer to this question has the potential to affect the amount of money for which you could qualify.Selecting vehicle for car title loan

Which vehicle do I use when applying for an auto title loan?

What Determines the Amount of My Auto Title Loan?

There are a few factors that come into play when your loan amount is being considered:

  • Your ability to make regular payments
  • The amount of equity in your vehicle
  • And several other factors

The most important of that list is the vehicle you choose to use. An auto title loan uses your personal vehicle as collateral against the loan, which is why choosing the right vehicle can make all the difference with your filing.

What to Consider When Choosing the Vehicle for Your Auto Title Loan

An auto title loan uses the market value of a vehicle in order to help determine the amount of your loan. Simply put, choosing the vehicle that has the most value will help increase the amount of your auto title loan.

Market value is the calculated worth of your vehicle; it is not the amount of money you could make in a private sale. Going off the market value ensures that the amount of the loan matches the collateral being used.

If your loan offer is lower than you thought it would be, it’s because the market value of the vehicle is usually lower than the amount one can sell a vehicle for on their own. There are many tools available to help you calculate the market value such as Kelly Blue Book or Edmunds.

Consider the Amount of the Loan You Need

If you do not require a large amount of money, it is not necessary to use your most expensive vehicle. Consider what you need before making an application and choosing the vehicle you are going to use. It is important to know what to do before applying, which is why auto title loan agents are available to assist you through the application and with any questions you may have.




Pay Back Your Car Title Loan

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Pay Back Your Auto Title Loan Ahead of Schedule

When you choose to pursue an auto title loan, you can choose one of three payment plans that best works for your individual needs.1 Whether you choose to pay off the title loan over 36 months or 12 months, you get the advantage of refinancing options and the support of a dedicated team of auto title loan agents.

Sometimes you do not need the full amount of your loan to take care of the financial challenges you faced when you chose to obtain an auto title loan. If this is the case, you should consider shortening the length of your payment plan by making larger payments on your current loan term until it is paid off.

Unlike some other lending services, auto title loans in Phoenix do not entail prepayment penalties, which is just another unique advantage customers get with an auto title loan.Save for car title loans payment

How Can I Ensure That I Stay Ahead of My Auto Title Loan?

When you are managing an auto title loan, being vigilant about your finances is the best policy to ensure that you can make early payments. We recommend making a plan for your personal finances during the life of your auto title loan and cutting back on excess expenses so that you have the best chance to make payments ahead of schedule.

Here are some items that other people have cut back on to be successful with their loan:

  • Eating at restaurants and going out for drinks
  • Going to the movie theater
  • Magazine subscriptions and online TV services

And here are some of the activities that have helped people make early payments:

  • Setting aside a dedicated amount of each pay-period to help with loan payments
  • Writing out a plan ahead of time to stay on track with your payments
  • Choosing a loan term duration that is best for you from the beginning

Early payments are just one benefit of an auto title loan. It gives qualified customers the freedom they need to take care of the unexpected expenses in life.

The Benefits of Early Payments

Making larger payments in the short term can actually help customers save money down the road. Once you have taken care of the financial challenges in your life, it makes more sense to pay your loan off ahead of schedule.

Here’s why: The longer the life of your loan, the more interest you will pay. Your interest is calculated against the principle balance of your loan, which is the amount of money you borrowed minus any payments made toward that balance. Generally, extra payments go toward the principle balance, meaning you’ll low less in interest. If you continue to make extra payments each month, the principle balance dwindles more quickly and the interest you owe dwindles along with it.

Auto title loans are unique in this regard as many other loan types prevent early payments in order to get the full amount of interest. Companies like LoanMart work to your benefit, providing great options throughout the life of the loan and giving you the freedom to utilize your loan as it works best in your life.


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