Auto title loans are one of the top methods that today’s consumers use to obtain the funds they need for emergencies. All states have laws about title
loans and other short-term loans because of various acts that they put in place to prevent predatory lending practices.
Auto title loans in Los Angeles and elsewhere are short-term solutions that provide funds to vehicle owners who qualify for them.
The typical range for auto title loans is $500 to $50,000.
The following are some of the procedures pertaining to such advances:
California Title Loan Laws
The state of California places certain stipulations on its title loan borrowers and lenders. A
borrower can borrow a certain percentage of the wholesale value of his or her vehicle. The numerical amount will vary according to certain factors. The
lender will base its decision on the vehicle’s year, make, model, mileage and other information.
Typically, the top title loan lenders allows a consumer to borrow an amount of at least $2,500, and he or she can borrow up to $50,000. Consumers can
receive higher title loan amounts in certain cases especially if they have new vehicles. You can use this auto loan calculator for a better idea of the amount you can get against your vehicle.
How the Title Loan Process Works
Almost all of the auto title loans products have a quick turnaround time. The consumer’s first step is contacting a local lender in the area. The consumer
will want to have all the information on the vehicle in his or her hand. The person will need to be the owner of the vehicle. The only way that a lender
will give a title-less person a title loan is if that person owes less than 25 percent on the vehicle loan. The company may consider issuing an advance to
such a person.
Someone will assess the value of the vehicle and present a figure to the consumer. The consumer has the right to accept or refuse the proposal. He or she
will have to sign a contract to accept the offer. The lender will then provide the borrower with a check in the amount that he or she desires. The borrower
can drive the vehicle until he or she repays the loan. However, the lender will want to place a lien on the car that gives it the right to repossess it if
the borrower’s account becomes delinquent. The lender will drop the lien when the borrower repays the advance.
An interested person can find out all about taking a title loan by contacting a participating lender for auto title loans in their respective area. A specialist will start
the application process immediately, and in most of the cases the borrower should receive loan proceeds in 24 to 48 hours.
Hope this would help you next time you are approaching for a title loan. Please leave a comment if you need any further information about auto title loans.
is a blogger and content strategist who loves to write about finance, business, various types of loans options and money management skills.