Car Title Loans in California
Subprime Loans
For those with little or no credit history or for persons with a poor credit score, a subprime loan is often the only option available for borrowing.
One example of this type of loan is the car title loan (sometimes referred to as a pink slip loan). In California, for example, the car title loan allows borrowers to use the equity in their car as collateral.
In order to apply for this loan, you need to demonstrate proof of ownership. The title to your car is the proof required. Some California lenders may require proof of income and may also require a credit check. Although a large number of loan companies will not need anything more than the proof of title of the car.
The amount of your loan is based on the wholesale value of your car. A percentage of the wholesale amount is generally the sum of the loan. The standard percentage is normally between twenty-five and fifty percent. The reason you are only offered a percentage is so that there is a cushion for the lender in the event the car had to be repossessed and sold.
Check The Value
However, that said, you still may wish to make an assessment yourself as to the car’s value before you approach a car title loan company in California. In order to establish value, consult The Kelly Blue Book (KBB) value found online. This resource has a database that lets you find your make, model and year. And there is also an option to add in any additional factors that could influence the value of your car. In most cases, the lenders will also be using this same resource to set a value for the loan..
The amount you can receive from a car title loan in Los Angeles will be very similar, if not the same, as the amount you would receive in San Diego, San Francisco, or any other area in California. Additionally, many times the trade-in value of the car is equal to wholesale value. Title loan lenders will take into consideration within their calculations how much of the car’s trade-in or wholesale value they are willing to lend against..
As mentioned, in most cases the loan amount will vary between 25% to 50% of the value of the vehicle. Varying states have different laws for how loan companies may establish their terms. Also, different auto title loan lenders will charge varying rates of interest. Try to find a company that has a competitive interest rate and provides flexible repayment options. If you live in San Diego, it might pay to see what the car title lenders lenders are charging in places like Chula Vista or National City.
So, if you have a poor credit history, a car title loan in California might be worth considering. It is the ideal short term financial solution when anyone with less than perfect credit requires emergency cash.
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Tags: auto title loan in California, California Title Loans, car title loan in Los Angeles, car title loan in San Diego, pink slip loan California