Cash title loans are often the fastest way for borrowers with low credit scores to get needed cash quickly. Secured loans that use car titles as collateral, cash title loans are typically short-term loans with lower interest rates than unsecured loans.
How Much Auto Equity Do You Have?
The minute a new car drives off the lot it instantly depreciates. When applying for a car equity loan, many people are surprised to learn just how much their vehicle has or has not depreciated in value. A number of factors play a role in determining how much a vehicle will depreciate from when it was bought.
Some of these include:
- Make and model of the vehicle: This is based primarily on the vehicle brand's reliability and safety reputation. If they are more likely to sell, they maintain their value better than others.
- Popularity: Vehicles that are more popular in the used car market are a better sale for the lender should they have to repossess and sell it. Hence, popular brands hold their value better.
- Mileage: The more your vehicle is driven; the more its worth will decrease. So, the more miles on the odometer, the less the vehicle is worth.
- Vehicle history: Salvaged vehicles and those that have been in accidents are less valuable because the damage they have sustained makes them difficult to sell.
- Condition: For obvious reasons vehicles that have been well maintained fetch a higher price.
- Location: Sometimes the place where a vehicle is sold can affect its value, especially if it was built for a specific terrain or weather conditions. For example, a 4x4 outfitted for snow is not as valuable in New Mexico as in Michigan.
- Options: Manufacturer upgrades such as interior upgrades, new tires etc. all increase the value of a car.
How to Calculate Auto Equity for a Car Title Loan
When your lender evaluates your auto equity loan application, they will make every effort to get an accurate value for the vehicle you have offered as collateral. Most lenders will not loan you more than 50 percent of your car's equity in cash, because they have to ensure that, should you default on your loan, they can cover the debt through repossession and sale of your vehicle.
The Kelley Blue Book, a guide to used car values, is an indispensable resource for borrowers to research their vehicle's value before applying for an auto equity loan. The company is the United States' largest automotive vehicle valuation company and their website is a source for new and used vehicle pricing and information.
Wilshire Consumer Credit offers cash title loans to borrowers in New Mexico and four other states. They are a reputable lender specializing in cash title loans, and feature a car valuation tool on their website. Use the tool here to evaluate your auto equity and fill in the form to apply for an auto title loan today.
With quick approval and turnaround, you could get approved in a few minutes after submitting your information here!