All You Need To Know About Car Equity Loans

Daniel Joelson

Daniel Joelson

Total Posts: 583

Published Date: February 11, 2023

Daniel Joelson has been in the consumer finance space since 1994, he has helped to develop underwriting manuals for the financial sector. With a vast amount of Knowledge in consumer finance, he has been writing articles for all types of loans. With his knowledge, he is able to help many people to answer different financial problems.

Everything About Car Equity Loans

A car equity loan is the same as a home equity loan, but here the value of your vehicle instead of your home to get a loan, and then it is important to pay back with interest.

Like other secured loans, auto equity loans have some benefits and also risks. Benefits include instant cash, even if you have a bad credit score. But, If you don’t make timely loan payments, the lender can recoup your car. This repossession can even lead to hardship if you are getting to work or school. Understanding these risks and benefits of title loans suggests when should you prefer to obtain a title loan. 

When Should You go For an Auto equity loan?

Car Equity Loans are instant and easy for borrowing cash for your financial emergencies and putting up your car as collateral. Only you can think of considering taking one in such situations.

  • If you need instant cash for a personal emergency like unexpected medical bills.
  • When you have good equity you go for an auto equity loan.
  • If you can repay the loan within the expected time.
Everything about car equity loans
Everything about car equity loans that you should know

How To Find Equity Value Of Your Car?

You can calculate your car equity by subtracting the car’s current resale value from the remaining loan balance on your auto loan.

Equity = Current Vehicle Value – Remaining Loan Balance

If the result is a positive number from the above computation, then you will be eligible for an auto equity loan.

If you have a negative result it means that you owe additional on the loan than what the vehicle is worth. This is known to be “underwater” or being upside down on a car loan. This makes you ineligible to apply for an online auto title loan, and you will have to try other ways for quick cash.

How a Car equity loan is different from a car title loan?

A Car Equity Loan needs your car to be put up as Collateral, but here you don’t have to forego the title. These loans can also offer longer-term loans and affordable rates.

Whereas Car title loans are for fast exchange and instant cash by holding the title of your car as collateral. But interest rates of car title loans are higher than car equity loans. These loans work great for people with Bad Credit scores.

Summing up!

An auto equity loan can work better if you are looking for a loan at a low rate. But it is important to look at your budget accordingly. Your vehicle can be at risk if you can’t make timely payments. It can even lead to the repossession of your car. TFC Title Loans can provide greater auto equity loans with comparatively best interest rates. You can connect to know more about the procedure for applying for it.

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Disclosures

DISCLAIMER: As our policy to make sure you know what we do and what are our limitations, we offer you these disclaimers. We are NOT A LENDER and we do not make short term cash loans or credit decisions. We are a referral service and work only with licensed lenders/brokers.

We may act as the broker for the loan and may not be the direct lender. Loan proceeds are intended primarily for personal, family and household purposes. We do not offer or service student loans.

*Loan amounts by the lenders vary based on your vehicle and your ability to repay the loan.

*Since we do not lend money directly we cannot offer you a solicitation for a loan, except in the state of California. In all other serviced states we WILL match you with a lender based on the information you provide on this website. We will not charge you for this service and our service is not available in all states. States that are serviced by this Web Site may change from time to time and without notice. Personal Unsecured Loans and Auto Title Loans are not available in all states and all areas.

*Auto Title Loan companies typically do not have pre-payment penalties, but we cannot guarantee that every lender meets this standard. Small Business Loans typically do have pre-payment penalties and occasionally will use your car as collateral to secure the loan.

*All lenders are responsible for their own interest rates and payment terms. TFC Title Loans has no control over these rates or payments. Use of the work competitive or reasonable does not mean affordable and borrowers should use their own discretion when working directly with the lender.

*The amount of people who applied for a loan and we helped and those who received a loan is not the same. We cannot guarantee we will find a lender who will fund you.Just because you give us information on this web site, in no way do we guarantee you will be approved for a car title loan or any other type of loan. Not all lenders can provide loan amounts you may see on this web site because loan amounts are limited by state law and/or the lender. Some lenders may require you to use a GPS locator device on your car, active all the time. They may or may not pay for this or charge you for this. This is up to the lender and we have no control over this policy of the lender. Typically larger loans or higher risk loans use a GPS.

*In some circumstances faxing may be required. Use of your cell phone to receive updates is optional.

*Car Title Loans are expensive and you may have other ways to get funding that is less expensive. These types of loans are meant to provide you with short term financing to solve immediate cash needs and should not be considered a long term solution. Residents of some states may not be eligible for a loan. Rejections for loans are not disclosed to our firm and you may want to contact the lender directly.

*Car Title Loan lenders are usually licensed by the State in which you reside. You should consult directly with these regulatory agencies to make sure your lender is licensed and in compliance. These agencies are there to protect you and we advise making sure any lender you receive money from is fully licensed.

*Trading Financial Credit, LLC dba TFC Title Loans, Car Title Loans California, Dineromax. If you are using a screen reader and are having problems using this website, please give us a call at 1-844-242-3543 for immediate assistance.

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