How Do Car Title Loans Work In New Jersey

People ask us all the time about the legality regarding car title loans in New Jersey. Before we answer that question let’s first get into what qualifies as a title loan in NJ. Specifically these are secured loans where a licensed lender gives you cash for the equity in your car or truck. Loan amounts are paid off over a period of 8 months to 3 years and the title loan company will keep your car’s title as one form of collateral for your full loan amount.

 

Title Loan Regulations & Limits In New Jersey

In principle, car title loans are allowed in the State of New Jersey but your financing offers are severely limited by the usury laws that are currently on the books. These laws restrict title loans and other short term loans to a maximum interest rate of 30%. This is one of the lowest title loan caps in the nation and it effectively makes title loans unprofitable for title loan companies to operate within state lines.

The other issue that you’ll face when looking for a car title loan in New Jersey is the lack of companies offering these types of services. Because of the low interest rate caps, there are only a handful of lenders willing to give title loans in NJ.

 

What’s The Verdict & Alternative Lending Options in NJ?

So while title loans are technically legal in New Jersey, the current laws make it very difficult to find a licensed lender who is willing to offer these services. We advise our customers to look for other options if they need quick cash. Some people choose to go with banks that allow you to use your car’s equity as collateral for a loan. There seems to be a few of these banks in Trenton and Newark that offer bank title loans with rates that are quite low compared to other vehicle equity lenders. Rates cap out at 14% and you may be able to borrow 100% of the current resale value of your vehicle in NJ! Of course, that’s a great offer but the downside is that it’s extremely difficult to qualify if you have bad credit.

Most people who apply for a title loan in NJ won’t be able to qualify with a bank or even a company that offers low interest personal loans and that’s because their credit score isn’t up to par. New Jersey residents have an average credit score of 721 and that’s on the higher end when compared to all 50 states. But even with a score in that range you may have trouble qualifying for a low interest title loan.

Other funding alternatives in New Jersey can include payday loans and installment loans. However, both of these offers have their issues as payday loans like title loans are capped at a 30% interest rate. Installment loans are offered within the state but again they have strict credit requirements and it’s difficult to qualify. Some residents in NJ will drive to local states like Delaware or Maryland where there are less restrictions on lending rates and terms.

 

Tap into your car's equity to get cash.

Title Loans In New Jersey – What You Need To Know

What about those who can qualify for a title loan in New Jersey even with the strict limits on interest rates and payment terms? In that case it may be a good idea to use your car as collateral. The next step is to determine how much money you can borrow and what your payment term will be. To find out the title loan value of your car you ca use an online estimating service or you can speak to a customer service agent over the phone. Once you have that information you’ll be able to shop around for the best title loan offers in NJ.

If you need more money than what your car is worth then you could look into other collateralized loans like a pawnshop loan or a boat title loan. Just remember that with any type of secured loan, if you can’t make your payments then your lender can seize your collateral. In the case of a car title loan, that would mean losing your vehicle.

 

How Does The Vehicle Inspection Work With Auto Title Loans In NJ

Anyone who can qualify for same day car title loans in NJ will need to bring their vehicle in for a quick inspection. Even if you apply over the phone or completely online, you still must physically bring your car to a lending location so that it can be appraised. The value of your car will be determined by its make, model, year, mileage and overall condition. Many larger cities in the state offer vehicle inspections and you can choose from a handful of companies in Jersey City and Newark.

The vehicle inspector will also check to see if there are any liens or outstanding loans against your vehicle and they will also look at the condition and drivability of the car. If there are liens then you’ll need to pay those off before you can use your car as collateral for a title loan in New Jersey.

Once the inspection is complete and you’ve signed all the financing documents you can move on to picking up your cash! In most scenarios, you can access cash for your vehicle in 24 hours or less from any online company and that timeframe speeds up considerably when you work with a local lender within the state. Some firms offer 90 minute funding which means you might be able to get the application completed and underwritten and have the vehicle inspected with cash in hand in less than 2 hours! Contact Car Title Loans 123 to learn more about the different ways to get cash for your vehicle equity in NJ!

 

Same day cash for vehicle title loans in NJ.

 

 

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