One common question Californians ask about auto title loans is how much money they can get from it. Some of them would like to borrow a large sum of money to pay for emergency expenses, for example, while others simply want a small amount to help pay the bills. But for whatever purpose it is, knowing how much you can get from an auto title loan in California is not that easy. This is because the amount you can get from this type of loan is relative to the car whose title is used as collateral.
Unlike in conventional loans that you get from banks and credit unions, wherein the loan amount is based on the borrower's income and credit score, auto title loans base the amount on the appraised value of the vehicle. When applying for a California auto title loan, the lender will have someone appraise the vehicle. The appraised value is calculated based on the car's worth in the market, the overall condition, and mileage among other things. If the vehicle still has a couple of payments left, this may also lower the maximum amount you can borrow from the loan.
It should also be noted that the appraised value of your vehicle will only be a percentage of your vehicle's actual worth. This is so that, in case the loan defaults, the lender can auction off the vehicle and make a profit out of it. The percentage varies depending on one lender to another, which is why it is recommended to shop around for loan offers from multiple lenders. This will allow you to get an idea of the going appraisal rate in your specific area and get a good deal in the process. And with so many lenders offering car title loans in California, you certainly won't find a shortage of them.
You can usually get the money you've borrowed on the same day you applied for the loan, provided that you've submitted all the necessary requirements and the vehicle has been appraised. Loan amounts of substantial size, however, make take another business day to be released for security purposes. Either way, the good news is that you will still be able to drive your car up until the loan's term is up. This is why most savvy Californians turn to car title loans instead of selling off their vehicle, as they still have the opportunity to borrow money and keep their vehicle in the process.
Unlike in conventional loans that you get from banks and credit unions, wherein the loan amount is based on the borrower's income and credit score, auto title loans base the amount on the appraised value of the vehicle. When applying for a California auto title loan, the lender will have someone appraise the vehicle. The appraised value is calculated based on the car's worth in the market, the overall condition, and mileage among other things. If the vehicle still has a couple of payments left, this may also lower the maximum amount you can borrow from the loan.
It should also be noted that the appraised value of your vehicle will only be a percentage of your vehicle's actual worth. This is so that, in case the loan defaults, the lender can auction off the vehicle and make a profit out of it. The percentage varies depending on one lender to another, which is why it is recommended to shop around for loan offers from multiple lenders. This will allow you to get an idea of the going appraisal rate in your specific area and get a good deal in the process. And with so many lenders offering car title loans in California, you certainly won't find a shortage of them.
You can usually get the money you've borrowed on the same day you applied for the loan, provided that you've submitted all the necessary requirements and the vehicle has been appraised. Loan amounts of substantial size, however, make take another business day to be released for security purposes. Either way, the good news is that you will still be able to drive your car up until the loan's term is up. This is why most savvy Californians turn to car title loans instead of selling off their vehicle, as they still have the opportunity to borrow money and keep their vehicle in the process.