When taking out a title loan, how old your car is may affect the value. A car title loan involves putting your car’s title in as collateral for the loan. There are a few factors that help lenders determine how much a car is worth, which includes how old the car is. If your car is older you are probably wondering if you can use it as collateral for getting a car title loan.
Will My Lender Take My Old Car?
To most lenders the age of your car does not necessarily determine whether your car qualifies for a car title loan. However, there are a couple requirements that most lenders have for your vehicle:
- The car must be in safe, working condition
- The car’s title must be lien-free
Keep in mind though that age is a factor in determining the overall value of the vehicle (The age may increase or decrease the amount you might get from a car title loan).
So, How Do Lenders Determine a Car’s Value?
There are few factors along with age that help lenders determine what your car is worth to them:
- Make
- Mileage
- Condition
Most lenders will take these factors and use places like Kelley Blue Book to determine what the value of your vehicle is. Keep in mind that anything that has been done to your vehicle may increase or decrease its value.
So although age is a factor in determining what your car is worth to a lender, the age of your vehicle might not hurt your chances of getting a car title loan.
State Laws/Rules/Regulations:
When looking at car title loans it important to look at your state’s laws and regulations regarding car title loans, here are a few things to look out for:
- The Legality of Car Title Loans– In some states car title loans are not allowed to be offered to residents. These states are; Colorado, Connecticut, Hawaii, Montana, Nebraska, New Jersey, New York, Oregon, Rhode Island, South Dakota, Washington DC and Wyoming.
- The Lender’s Rules on Car Title Loans- There are different rules that exist for lenders according to the state that they operate in. For example in some states such as California, the lenders do not take any vehicle whose value they determine being under $2,500. Other states such as Kansas will only allow small businesses to take out car title loans. Most states give the freedom to the lender to pick and choose what cars they will or will not accept as collateral.
- Interest Rates on Car Title Loans- In some states the lenders do not have a cap on how much interest they can charge a borrower on their loan. Because of this it is important to pay attention to how much you are being charged for your car title loan. In order to see how much interest you are paying take a look at the annual percentage rate (APR) along with your monthly percentage rate (MPR) given by your lender. (keep in mind that most lenders will only show you your MPR, just add up your MPR for the year and this should give you your APR)
Although these are factors that most lenders look at, each lender is different. When looking at car title loans it can be smart to look at several lenders. At Max Cash Title Loans, we work with many trusted lenders all over the United States. With such reach, we may be able to match you up with a lender that works for your specific situation and value of your car1.
If you have a very old vehicle and are looking to get a car title loan you probably have a few questions. One likely being whether your older vehicle can be used as collateral. Fortunately the age of your vehicle is not a huge factor in determining that. Other factors include, the make, mileage and the condition of your car. These along with the age of your vehicle, all work together to give the lender a good idea of what your vehicle might be worth to them. Before looking for a car title loan it is important to firstly look at if your state allows for this specific type of loan–in addition to reviewing the regulations, rules and/or laws that your state has set for its lenders and borrowers. After thinking about all of these, looking at several lenders is probably the best way to go about it. Here is where going to Max Cash Title Loans could help. We may be able to connect you with one of many of trusted lenders in only a few minutes1. Give us a call or text at: 1-855-561-5626 and we can help you get started with the process of getting a car title loan1.