Much like a typical car title loan, A motorcycle title loan is designed to let the owner of a motorcycle get fast cash when he or she needs it! With this type of title loan, you’ll receive cash in exchange for the title to your motorbike. After loan approval, Depending on the state you live in, it’s sometimes possible to get cash within an hour. All in all, using your motorcycle title is a fast way to access money when you have no other options.
One of the common concerns when you discuss title loans is the fact that you may have to give up your vehicle or sell your car in order to get a loan. That’s not the case with most car title loans and it’s not the case with motorcycle title loans either. With many of the largest lenders you won’t need to sell your motorcycle in order to get money. When you decide to go with this type of loan you’ll receive cash and the lender will become a lien-holder on your motorbike. Once you pay off the loan according to pre-determined loan terms and conditions, the title will be returned to you. As you can see, the title to your motorcycle functions as collateral. This type of loan offers offers both financial parties different benefits. The lender has piece of mind as they will repossess your bike in the case of default. If you don’t pay your loan off as you should, the title will remain with the lender and you will need to work with them to setup alternative payments. So, you should be very confident that you will be able to make timely payments until the loan is fully paid off. There may also be processing fees for this form of loan, as well as the usual interest charges.
In order to finalize this type of loan after your application is approved, you’ll need to sign some papers. Another benefit of a motorcycle title loan is that you’re going to be borrowing less money than what you would typically borrow with most car title loans. As an example, most title loans will be written for anywhere from $5000 and up. Motorcycle title loans are typically issued at anywhere from $2,000 to $6,000. This is of course attributed to the fact that motorcycles are worth much less than most vehicles. The benefit of this is that you will have less paperwork and less lender scrutiny because you are borrowing less money. The process with a motorcycle title loan is usually quicker and easier when compared to getting a title loan.
After securing final approval for the loan you should be able to get your money almost immediately. The amount that you receive will be scaled to the value of your motorcycle, usually around 40-60% of the overall value of the bike. When shopping around comparison quotes on a loan like this we recommend that to seek out the lowest interest rates that you can find. In addition, be sure to apply only through companies with strong and positive reputations. Many of the largest and most reputable motorcycle lenders also provide car title loans so you will want to look for a title loan company with a great reputation. Like most financial companies, it’s pretty easy to check out direct title lenders online. For example, you may go to the BBB website and see how different companies measure up and also look for other relevant feedback online concerning reviews and loan terms. Once you have a short list of reputable lenders, look and see if they offer the interest rates and loan terms that you want. Also check if they provide title loans in your state. This is often overlooked but is probably the most important factor when looking for a title loan. It sounds simple, but you have a zero percent chance of getting a loan if your lender doesn’t fund title loans in your state! Now that you know the basics of motorcycle title lending, we hope you feel more comfortable in your online search for a lender! why not apply for an online title loan today?