Have you decided to take out a car title loan? Well, I hope that you have already tried to explore other options but failed miserably. There is no harm in borrowing loans for your car title if you take care of timely repayment. However, before borrowing you must make an accurate assessment of your car’s value. This will help you understand whether what you are offered by the lenders is fair in respect to the car’s value.
What factors the lenders look into to determine the loan amount
A car title loan is made available to the vehicle owner. The lenders give a percentage of the car’s value. This value is estimated on the basis of some important factors. First of all, the borrowers consider the make and model of your car. These are needed to be sure of safety and reliability of your car.
Next point to consider is the demand for your car model. If the model is popular, it will definitely fetch a goodly sum from resale. It will be easy for your lender to get back the loan if you default on payment. The high demand for your car ascertains that the lender will not have to undergo any hassle in the event of the loan default.
Does your car offer good mileage? How old is it? The older model and high mileage cause depreciation in car value.
The lenders also want to know if your car has ever met accident. If such thing has happened to your car, it will definitely reduce the car’s value.
Is your car in good condition? It needs no mention that if a car is in fine fettle, it will bring you more funding.
The same car may sell at different prices depending on the demand elasticity in the specific market. So, the lenders will try to know the location market demand and value of your vehicle.
Is your car fitted with any option for upgrade? If yes, then it will up your car’s resale value and increase the amount of car title loan.
So, you see that the lenders rely on a long list of criteria to determine your car’s ongoing market value and also how much can be granted as loan. So, it is always better to estimate the value of your car at ongoing market price. In that case, you can make a good comparison between the estimated figure and what the lender has assessed.