The main question we hear when people apply for car title loans is how much cash can they get for their car title. The answer is simple in one sense as the cash you can get for a title loan is based on the vehicle’s resale value and loan amounts can often approach $20,000.
But there are also other factors in play that determine how much cash you can get for a title loan. These include the state you live in, your employment and credit history and other qualifying factors.
How much cash you can get for a car title loan will depend on several factors with the most important being the amount of equity you can use for the loan collateral.
The first step to determine how much cash you can get would be to see what your vehicle is worth on the resale market. By checking the current value, you can get an idea of how much it would be worth if you were to sell your car. Your local lender will want to know the worth of the vehicle in order to determine what they are willing to loan you based on its security value. The total loan value of your car will depend on comparison sale prices and there are other variables that include demand for your specific make and model. Even though a car title loan lender may see significant equity in your car, they still need to figure out how much they can get for it at a vehicle auction.
Newer vehicles with low mileage will often bring a premium value on the resale market and that bodes well when you try to determine how much you can get for a title loan. If your vehicle is valued at $7,000 or higher, you could qualify for a maximum loan amount of $13,000 or higher with some lenders.
How much cash you can get will vary by state law and insurer; typically most companies will allow anywhere from 50% – 75% of the value of the asset as collateral for a single use auto title loan. Other vehicle valuation factors can reduce the amount of cash available to you from a title loan. These can include what the lender sees during an in person vehicle inspection as well as any issues that may come up when they check vehicle accident reports and other databases.
While your vehicle value is the most important factor in determining how much cash you can get, there are other factors in play. For instance, do you live in a state that has lending limits or caps on how much a title lender can offer? If so you may be limited to lower amounts on online title loans of as little as $1,000. These loan limits vary by state and it’s important to stay on top of the lending regulations before you reach out to a lender.
You can also be limited in what you get for a title loan solely based on your employment situation. If you are unemployed or have a job with limited income then a title loan company may be concerned that you don’t make enough money each month to stay current on your loan. In that case, you can be limited on how much cash you get for a title loan. The only way to avoid a limit based on your monthly income is to show other ways you have money coming in. Some title loan companies will up your loan limit if you have side jobs or things like social security or disability coming in which can help you make the monthly loan payments.
Lastly, what type of secured equity are you using as collateral for this title loan? Is it something common like a vehicle or truck? Or are you trying to borrow money by using a boat or motorcycle as collateral for a title loan? Of course, cars and trucks are going to have much higher values than a boat or motorbike and you can expect the loan amount that’s offered to you by a lender to be much lower if you have something like a boat or motorcycle that’s simply not worth nearly as much as a car or truck.
At the end of the day, determining how much cash you can get for a car title loan is based on several factors; your vehicle’s value, your employment status, and your credit history among others and you can often estimate these amounts to determine exactly how much you can borrow. Start with a title loan calculator to come up with different scenarios that show loan amounts and expected monthly payments. Factor in any requirements and lending caps that could be assessed because of your age and financial history and you should have a rather detailed estimate that shows how much you can borrow with a car title loan.