Car title loans are short-term loans given to people with bad credit in return for an auto title as collateral. A title loan can help tide you over during crises and emergencies. As long as you hold a clear title for a vehicle that is paid up or nearly paid up, you can get approved for title loans online. But how do you get an accurate evaluation for your automobile so you can borrow the maximum amount possible?
How to Determine Car Value for Title Loans Online
First you need to know how your online loan lender will evaluate your automobile. A car’s value is determined by evaluating and comparing numerous factors, including:
* Make and model: This is based primarily on the vehicle’s reliability and safety. If they are more likely to sell, they maintain their value better than others.
* Popularity & Demand (Scarcity): Vehicles that are more popular in the used car market are a better sale for the lender should they have to repossess and sell it. Hence, popular brands hold their value better.
* Vehicle history: Salvaged automobile and those that have been in accidents are less valuable because the damage they have sustained makes them difficult to sell.
* Age & Mileage: The more your vehicle was driven, the more its worth will decrease.
* Condition: For obvious reasons automobile that have been well maintained attain a higher resale value.
* Options: Manufacturer upgrades such as interior upgrades, new tires etc. all increase the value of a car.
* Location: Sometimes the place where a automobile is sold can affect its value, especially if it was built for a specific terrain or weather conditions. For example, a 4×4 outfitted for snow is not as valuable in New Mexico as in Michigan.
Lenders use the wholesale value (or trade-in value) of the automobile when determining how much they are willing to lend to borrowers. Should the loan become delinquent, the lenders will want to sell the vehicle as quickly as possible to recover their cash.
The Kelley Blue Book is a popular online resource for determining the value of a used car. This online research tool allows consumers to input all of the details about a vehicle to get a precise market value for that particular vehicle. If you’ve added features such as upgraded interior packages, sound systems and tires, it can greatly affect the value of your automobile. Consequently, it pays to leave no detail out when describing a particular vehicle.
When you provide all the information you can online, you can be sure of getting an accurate evaluation. Doing this will help you estimate the value of your automobile so you can borrow the maximum amount possible on any car title loans online that may be of interest to you.
Car title loans online have lenders that will loan up to about 50 percent of the value of the automobile used for collateral, though some will only loan up to around 25 percent. Some lenders will only lend up to a fixed amount of money regardless of how much a vehicle is worth. This is because they have to spend money to repossess and sell the car if you do not repay the loan, therefore, they have to ensure that they will always cover the cost of the automobile used as collateral.