Find out how much cash you can get with a title loan based on your vehicle’s value, condition, and more. Learn how title loans work and what to expect from Check City.
We use our cars for many things. They get us to and from work, help us pick up groceries and kids, go on vacation, and so much more. Our cars get us where we’re going.
But did you know your car can also help you financially get where you’re going? Your car is worth more than what it can do for you. It has a cash value in more ways than one.
Whether you’re dealing with an unexpected expense or just need extra cash to make it through the month, we’ll explain how title loans work — and how to estimate your car’s value so you know how much you could borrow.
How Do Cash Title Loans Work?
Cash title loans are a way to borrow money using your vehicle as collateral without having to sell or give your car over to a lender. If you own your vehicle, you can use the title to secure a title loan that reflects a percentage of your car’s financial worth.
Due to your title being used as collateral, it’s easier to qualify for this type of loan if you don’t meet the requirements of a personal or payday loan.
To get a car title loan, you’ll need to:
- Apply for a title loan with your vehicle information.
- Get a loan estimate based on your car’s value and your ability to repay.
- Hand over your title, not your keys. You keep driving your car while you make payments.
- Repay the loan in full and interest to get your title back.
How is the Title Loan Value of My Car Calculated?
From the day you were first handed your car keys to today, your car’s worth has already changed. That’s why, when you apply for a title loan, the amount of cash depends on your car’s current value.
Title loan lenders generally let customers borrow between 25% and 50% of the value of their title. Once you know how much your title is worth, you can use these percentages to find out how much you get for a title loan. For example, with Utah title loans, let’s say your car is valued at $12,000. Depending on the lender, you might qualify for a loan between $3,000 and $6,000.
Find out how much you can potentially borrow by completing the following equation:
Title Value x (Percentage as a Decimal) = Loan Amount
Here’s what lenders look for when calculating the value of your vehicle:
- Make, Model, and Year: Certain makes and models are more valuable than others. Newer cars usually qualify for more, while older cars may qualify for less.
- Mileage: Low-mileage cars have more value than high-mileage cars.
- Condition: Lenders look at the cosmetic and mechanical issues of your car’s condition to determine the value.
- Market Demand: If your car is a popular model in your area, it might be worth more.
- Location: Local market trends and resale values can play a role in your vehicle’s value, depending on where you live.
Want to find out what the title loan value of your car is? First, find out the value of your vehicle.
Example Title Loan Values by Car Type
How much cash could you get from a title loan? It all depends on the make, model, and condition of the car. Here are a few examples of different loan values by car type to give you a ballpark idea:
- 2020 Honda Civic
- Estimated Value: $14,000
- Estimate Loan Amount: $7,000
- 2015 Ford F-150
- Estimated Value: $20,000
- Estimated Loan Amount: $10,000
- 2012 Toyota Camry (High-Mileage)
- Estimated Value: $6,000
- Estimated Loan Amount: $3,000
- 2018 Jeep Grand Cherokee
- Estimated Value: $22,00
- Estimated Loan Amount: $11,000
- 2015 Chevrolet Malibu (High-Mileage)
- Estimated Value: $7,000
- Estimated Loan Amount: $3,500
Of course, every situation is different. Since title loan amounts are based on the title value, the estimate of your title loan is based on this as well. Financial institutions that offer car title loans will often provide a percentage of the title’s value.
So whatever your auto title is worth, you could potentially get a percentage of that value based on the financial institution’s policies.
What You Need to Qualify for a Title Loan
To get a car title loan, you don’t just need a title. You also need a few other things to finish your application and to get loan approval. Since a car title loan is a secured loan, most likely you’ll need the following things to apply:
- A vehicle with a lien-free title in your name
- A government-issued ID
- Proof of income
- Your vehicle for a brief inspection
- Be at least 18 years old
Loan approval requirements vary depending on the lender. You may also need a high credit score or a vehicle with low mileage and minimal wear and tear. But if your loan is approved, you’ll be able to borrow the money and make monthly payments on a payment schedule.
If you are approved, you’ll also give the lender your vehicle title as collateral for the secured loan. But do you get to keep your car? Do you have to install a GPS tracker on your vehicle? This all depends on the loan provider you are using.
Get answers to your car title loan questions.
Once your loan payment schedule is over and the loan is repaid, you’ll get your title back from the lender.
Final Thoughts
Your car is helpful in more ways than one! By using the title of your vehicle, you can take out a title loan near you and get fast cash today. Many lenders also let you keep driving your car even after taking out this short-term loan.
Learn More About How Title Loans Work
- Why a Clean Car Title Matters
- What is a Collateral Loan?
- What is Refinancing and How Does It Work?
- What is a Lien?
