Statistics suggest that more and more Canadian families do not have enough spare cash to fund any sudden emergency. From a burst water pipe to an unexpected baby, families who are already stretched to the limit often struggle to meet these crises, and may fall into serious debt. For those who are already in a financial hole, the extra pressure of finances can be a disaster. If your family need sudden help with a financial burden, then one solution may be to get cash on your car with a vehicle title loan. Just like home equity loans, these can provide instant cash and allow the family to get back on their feet.
There are several ways in which people can get a financial loan on their vehicle, but the most secure is to ask for a vehicle title loan. These loans allow the car owner to drive the car, while making monthly payments to the lender until the loan is paid out. In fact you basically convert your vehicle into cash by using its equity. These loans are suitable if you have bad credit, for example, or are self-employed, both cases where most banks will not allow you to borrow against a house, car or other property. With a car title loan company minimal amount of paperwork required, there is no credit check and the process is faster than banks & traditional financial institutions.
It is a good idea for anyone new to taking out a loan on their car to consider several different car title loan companies before calling one and asking for a deal. Rates for car title loans will vary, so the amount that you need to borrow should always be a consideration when talking to title loan companies. For example, some will only offer a loan of up to $10,000, while others will allow up to $30,000. Another element to consider is the repayment time. Some companies only allow a short period for repayment, between one and three months, and may be ideal for you if you only need a small loan for a short period. However, for those who need larger loans, it may make more sense to check out companies who offer 2 or even 5 years term on the loan repayment. Pre-Payment penalty is another important component on your check list, some companies will charge you early payment penalties while others will provide you an open car title loan which can be paid out anytime with no penalty.
Before you can get cash on your car, you will need to be certain that you are eligible. Most companies ask that the car being offered for loan is completely yours, and that it has no other loans currently on the title. They will also expect the car owner to be at least 18, and most often 19. The car must have full coverage insurance in order to protect the company in the event of a car accident or theft and the car must also be registered in your name, to prove that you are the owner.