For an emergency cash infusion and a prompt and positive response in your hour of crisis, nothing beats the auto title loans that have helped thousands of people in meeting urgent and pressing costs like legal expenses, gaining assistance in medical emergencies, paying up their utility bills and getting their children’s’ education expenses paid in time, in short, vehicle title loans have provided relief to all strata of society, every single time. Here, we lead you step by step through the process of gaining maximum benefit from these loans referred to as pink slip loans in California:
- Ensuring your eligibility for the car title loans
Possessing a valid California car registration (pink slip) and complete undisputed title to the vehicle is mandatory for applying to these types of loans. You need to be over 18 years age and submit proof of residence (like your current telephone bill, or rent agreement) and proof of income. Remember that the loan can only be availed by you or your spouse or family member who has clear title to the car.
- Ensuring to gather and submit income proof for the car title loans
If you happen to be a wage earner or salaried worker, producing the latest pay stub or salary slip is a must for this car equity loan. Those who are self-employed or operating small industries can provide any proof like cash receipts, revenue or tax statements and bank account statements for the past month or quarter. Lenders also help pensioners and senior citizens who can prove that they have a regular source of income from pensions, disability allowances or bank deposits. You can also keep a co-signer as standby to secure the auto equity loan in case your income does not add up for loan approval. If the co-signer is involved you will need to submit his driving license, and proofs of residence and income.
These collateral loans are given on the security of the vehicle’s title and based on its resale value. The lender transfers your title to his company and a special lien is marked in the registration papers by the DMV, and these formalities are completed by the lenders themselves. Even though the title changes names from the borrower to the lender, actual possession of the automobile remains with the borrower only, and this arrangement continues till the loan is fully repaid as per the loan contract. To guarantee you get the best auto collateral loans:
- Ensure that your title is clear and there are no loans pending against the vehicle (bank loans or other finances). If a small marginal amount remains pending against a car loan you availed, possibly the lender may consider financing the closure of that loan and approve an additional amount, all within your collateral loan eligibility.
- Keep the car spruced up and in good driving condition, because the lender will check the mileage and performance and satisfy himself regarding its salability, before deciding the resale value. This is crucial because a good resale value means higher loan eligibility. In any case, a lender is unlikely to loan more than 50% of the car’s resale value. Kelley’s Blue Book USA is an authoritative source for checking your car’s resale value to ensure you are getting the best offer.
- Submitting the car title loans application and confirmation of your eligibility for the loan
This is a very simple process that can be done in the privacy of your home through the internet. You need to log on to the company’s website and fill out very basic particulars like your name, address, employment status and income details along with particulars of the car and its make, model, year of manufacture and style, and immediately get the confirmation or otherwise regarding your loan eligibility, and usually an approximate loan estimate. Please remember that the final estimate can only be confirmed by the lender after inspecting the car physically. It is all done extremely fast, with the least bit of inconvenience.
- Approaching the lender with proofs and necessary documents for sanctioning the auto title loans
Once your eligibility is confirmed, you next approach the lender at his nearest loan service center; usually if there is no office in your locality the lender deputes his manager to your home to check out the car and complete the formalities.
- Cashing the auto title loans
Once the preliminary scrutiny is over you will be communicated the terms and conditions of the loan, the proposed loan amount and its expected repayment schedule, including the loan interest component. If you are agreeable to proceeding further, you will be required to sign a fast car title loans agreement or contract, following which the cash is immediately disbursed to you. All this hardly takes a couple of hours with the older more established lending companies. Soon, you will be driving out your car with the cash safely in your pocket.
As you may realize, the formalities involved in getting car title loans approved are the least bit intrusive; nobody pesters you regarding your credit standing, lenders by and large do not disapprove of a bad credit history, and hardly any income verification takes place. Only your assurance and the physical proofs submitted by you suffice for the limited purpose of getting these loans approved.