Do you own a classic car and need thousands of dollars urgently? Then a classic car title loan might be the option for you. An auto title loan obtained against your classic car can get you the quick cash that you require in the comfort of your own home.
A title loan is a secured, short-term loan. Most lenders have vehicle age limits in place and refuse to grant a loan on cars older than 10 years. They set this age limit as vehicles older than a decade don't have much market value. However, a vintage car has high market value on account of its rarity. It is easy to obtain a high price for them, provided you know the worth of the vehicle and are dealing with serious buyers.
How Classic Car Title Loans Work
Lenders use the equity in your car as collateral and provide you a loan against it. Classic cars have a lot of value, as they are not readily available on the market. Many lenders collect vintage cars and pay a hefty sum for them in auctions.
When you request a title loan on a classic car, the lender will have your car appraised. According to the market value, the lender will decide the maximum amount of credit that they are willing to offer. For example, if the value of your car comes in at $25,000, the lender may be willing to lend you between $18,000 and $20,000.
A lender never loans the full value of the car. They keep a risk margin in case you stop paying your classic car title loan installments. In that scenario, the lender auctions off your vehicle to reclaim the amount that you still owe.
When dealing with classic cars, a lender may decide to use a car pawn instead of a title. In a car pawn, your car is stored in a storage facility until you repay the loan in full, whereas in an auto title loan, the borrower can drive their vehicle and keep it in use while they repay the loan.
In general, requesting old car title loans is a very straightforward process. You can complete the entire process and have the money in your account shortly after. To finish the online request form, the following documents are usually required:
- Bank account details
- Government-issued ID
- Social Security number
- Proof of regular income
You don't have to worry about a bad credit record because it is a secured loan. After you fill out the form, you submit it for review with a scanned copy of your car title. A car title is a legal document that provides the vehicle's proof of ownership.
After you send your request, the lender will review your documents, get your car appraised, and then make you an offer.
GetCash is an online platform that can connect you with a lender from its network. Hence, it is an ideal place from which you can get your classic car title loans without much hassle.
Before selecting an offer, you should read through the terms and conditions thoroughly. If you have the time to get a lawyer's opinion on the contract, it is recommended that you do so. A classic car is worth a lot of money, and you don't want to lose an asset due to a small oversight on your part.
Repaying the Loan
Being clear on the terms and conditions is necessary to ensure a smooth repayment schedule. In a car title loan, you sign over the title to the lender until you pay back the loan in full. Hence, you must ensure that you make all of your payments on time.
You should allow an appropriate budget and have a sound repayment plan in place so that you can pay off the loan according to the stipulated terms and conditions. Making your payments on time is essential for two main reasons:
- High-interest rates
- Possibility of car repossession
Because title loans on classic cars are short-term loans like the payday loans, the interest rates are very high. If you fall back on the payment schedule, you may find it harder to make up for it the next month or the month after that. You then run the risk of losing your car as the lender may seize it to recover the outstanding balance on the loan.
Even after your car gets repossessed, there is a possibility that the full amount of the loan may not be discharged. The car may not sell for as high a price as expected, and you may be legally bound to pay the remaining sum.
If planned properly, a classic car title loan can get you the instant cash you need. As long as you choose a realistic payment plan, you don't even have to worry about losing your vintage classic car.
Why Get a Title Loan on a Classic Car?
- The quick and easy loan process
- Speedy cash
- Flexible repayment schedule
- High approval rate (compared to other loans types)