Car Title loans are great solutions if you have been looking for emergency money, you are now wondering how the maximum amount I can borrow is determined. Every vehicle title loan company has their own ways of determining the value of your vehicle and different factors that may affect your title loan amount. For instance the older your vehicle is the less it can be worth, but at times an older vehicle that has been properly maintained and has low miles may be a great source for a larger car title loan than expected. While the year, make and model of your car are the most important factors for title pawn companies the rarity and condition sometimes is taken into account to determine the title loan size. The liquidation value to lenders is important because in cases when the vehicle has to be repossessed, the lender will have to liquidate to recover their investment. Manufacturer upgrades to the interior or exterior, along with new tires etc. will help add value to your vehicle. Other upgrades like rims and customized paint jobs may reduce the value of the car since it makes it harder to be sold because it narrows down the buyers interested. If you look up your cars value on Kelley blue book, remember that title loan companies will be looking at the trade in value of the vehicle. With knowledge of how much your car may be worth on KBB, you can expect that most lenders will be looking to do a car title loan on up to 50 to 75 percent of the value of the automobile for use as collateral for the title pawn.
How much money can I take out on a loan for my car title loan?
March 11, 2013 by