Los Angeles Car Title Loans
Subprime Loans
For those with little or no credit history or for persons with a poor credit score, a subprime loan is often the only option available for borrowing.
One example of this type of loan is the car title loan (sometimes referred to as a pink slip loan). In California, for example, the car title loan allows borrowers to use the equity in their car as collateral.
In order to attain a title loan you will need to show proof of vehicle ownership: you do so by showing the lender your title. In California, you may also find that some lenders will require proof of income and will run a credit check as well. Although a large number of loan companies will not need anything more than the proof of title of the car.
The amount that you can borrow will of course depend on the value of your vehicle. A percentage of the wholesale amount is generally the sum of the loan. The standard percentage is normally between twenty-five and fifty percent. The reason the lender offers a percentage of wholesale is so he or she may recoup his or her costs should the automobile need to be repossessed.
Check The Value
However, that said, you still may wish to make an assessment yourself as to the car’s value before you approach a car title loan company in California. If you look online, you can find the value through the Kelly Blue Book. This resource has a database that lets you find your make, model and year. And there is also an option to add in any additional factors that could influence the value of your car. In most cases, the lenders will also be using this same resource to set a value for the loan..
The amount you can receive from a car title loan in Los Angeles will be very similar, if not the same, as the amount you would receive in San Diego, San Francisco, or any other area in California. This wholesale amount is often the same as you would receive in a trade-in. Once the wholesale or trade-in value is determined, then the tile loan company will decide how much of this value they will lend you..
As mentioned, in most cases the loan amount will vary between 25% to 50% of the value of the vehicle. The terms of car title loans and the laws governing how they are applied vary from state to state. You should also be aware the interest rate charged on the loan will vary from lender to lender. Try to find a company that has a competitive interest rate and provides flexible repayment options. For example, if you need a car title loan in San Diego, be sure to check the lenders in the surrounding areas like Chula Vista and National City to ensure you receive the best rates.
Conclusively, if your credit score is not great, a car title loan in California may be a nice option for you. It is a good short term solution in a cash crunch.