One thing few people know is that you can use your vehicle as collateral to borrow money. At the same time, the financial lender offers you the opportunity to continue using the vehicle while paying off the loan. It is very important that you understand all the legalities before agreeing to take Car Title Loans in San Antonio out on your car or truck. Ignoring this suggestion could leave you without a vehicle. Here are some other things you should be aware of when borrowing money through a title loan.
What do I need to pawn my car?
Although perhaps it’s not so obvious, a prerequisite is that the car is less than ten years old. However, it is common for businesses to reduce the years of the vehicle according to the vehicle type in question (to give them a longer high-end duration). In general, a number of requirements must be met:
1. The vehicle must be fully paid off, meaning there is no liens or title reservations.
2. Technical details of the vehicle must be in place.
3. A license is needed, and all taxes must be paid.
4. A document proving ownership of the vehicle, i.e. the title.
General recommendations before considering pawning your title
1. Interest. As is the case with many loan companies, the total interest that is applied to this type of loan is very high – usually around 20%.
2. Appraisal of the vehicle. Sometimes, companies offer up to 70% of the appraised value of the vehicle, although usually it is around about 50%, depending on the characteristics of the vehicle.
3. Length of credit. The Car Title Loans in San Antonio given must be paid off between one and a half to three months (sometimes up to six months), during which time these companies raise the money borrowed and interest. Failure to satisfy the debt at the end of the period will leave you without a vehicle.
From a legal point of view, this is a fully legal operation since the methods used are similar to that of security interest. In fact, it is similar to what happens with home mortgages. Contact Xpress Title Loans for more information.
