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.
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.