Everything decreases in value over a certain amount of time. We see this happen most often with cars, because of wear and tear and the fact that new vehicle models come out each year. Cars also tend to depreciate and lose their value after a few months of buying. Therefore, it’s important to make sure one does not end up with a car with little to no value. In the best-case scenario, your car has low miles and is a newer model. In this situation, you can use your vehicle equity to get emergency cash.
Anyone can use a free and clear pink slip as collateral to get an online title loan. As with any type of online financing, you’re first going to determine your creditworthiness and if you have the ability to pay back the loan each month. Next, an online lender will want to see the value of the vehicle. There are several things that will affect the car’s resale value. Keeping them in mind will help to calculate the approximate selling price of the car which will be accepted.
What Is The Resale Value of Your Car?
There are various types of cars on the market and that will have to be taken into consideration. A normal car will show lesser demand in the market as compared to the vintages, classics, sports, and some other special cars. Lesser demand means the resale value of the car will be lowered. Higher demand means the car will be sold at a higher price. When looking at a car title loan, the vehicle’s Bluebook value is most important. Much as you would if you buy or lease a car, you need to know the details and history of any vehicle. This amount determines how much the finance lender is willing to give when a borrower hands over their car as collateral. Let’s discuss different factors that determine what a car is worth.
The less that the car is driven in accordance with the mileage shown on the odometer, the higher the resale value of the car will be. A car can have high mileage and good amount of use. But is it in bad condition with a low resale value? It may be much higher thus lowering the value and money you get with a car title loan. We see cars approved for online title loans with high mileage all the time. But these vehicles are often newer models and still in good shape.
Depreciation is one of the major factors that affect a car’s resale value. As soon as the car is driven off the dealer’s lot, it starts depreciating and within the first two years, it loses 20% of its value. Depending on the mileage, brand name and condition of the car, it starts depreciating further in the next 5 years. Even though most car title loans are given for cars manufactured over the past decade, that doesn’t mean they don’t lose value. The older your vehicle is the more you’re going to see a lower value. Submit an application for a title loan near me, to see the value and condition of your vehicle. Most car title loan companies will allow you to see the amount you can get before you sign off and hand over the pink slip.
A well-maintained car both inside and outside will always attract more attention of second-hand car buyers. Therefore, a car’s appearance also plays a major role in deciding its resale value. If a car is dented or scratched in any way, then the chances of it losing its value are imminent. The same is true when you determine the value of a title loan online. The better condition of your car the more it’s going to be worth. The higher the amount your car is worth the more money you can qualify for with a title loan.
One thing a car owner tends to ignore is the brand name and the color of the car. There are certain brands that will always be preferred over others. Expensive brands are in demand and thus increase the resale value. Vehicle colors also play a significant role in deciding the demand and value of the car. Some colors like black and white are more preferred when looking at the auto’s value. Odd colors like yellow and red are less likely to lead to an expensive valuation. The performance of the car is crucial, especially if you’re trying to apply for a title loan with an older vehicle. A car that is in good mechanical condition and has good mileage and no smoky exhaust and oil leaks will always be preferred. Most car title loan companies do a simple visual inspection before you sign off on a contract. Some lenders will do a more detailed inspection as a way to check the vehicle’s performance and history.
All online car title lenders are going to use some type of valuation service to come up with a quote and lending terms. Many will use the National Automobile Dealers Association Blue Book tool to settle on a value. A car in good condition which is tested and certified along with having all the documents available will always be sold at a higher price. Do your homework before you go with a company that offers car title loans. Odds are you would do the same with any payday loan company or cash advance service. Same with most installment loan services and those are unsecured loans! If you plan on handing over your car’s title as collateral for a loan, it pays to know your vehicle history!