Let's face it. Everyone wants to own the car of their dreams but not everyone has the financial backing to be able to pull it off. If you don't have the best credit score, it may be very hard to qualify for a loan given your situation. The good news is that there are auto equity loan companies out there. These companies will give short-term loans to you in exchange for your car title. This car title will basically be used as collateral while you are paying down the loan. In today's article, I am going to be going over exactly what a auto equity loan is, how to get started with one as well as other alternative methods of buying a car.
Like I said earlier, a auto equity loan is basically a short-term loan that is lent out by an auto equity loan company. They use your vehicle title as collateral until you pay back that loan. A typical loan lasts for 30 days. If you cannot for whatever reason pay that loan back with the thirty-day time frame, the auto equity loan company could potentially take your car. Make sure that you read over all of the terms and conditions of the loan before signing a single document. Remember, you are putting your car on the line here. The last thing you want to do is skip over something and make a huge financial mistake.
Before you can apply for a specific auto equity loan, you have to find the right company to choose from. I would suggest searching around your local area for auto equity loan companies. Next, I would narrow down my selection to the three best companies in the area that I believe would offer me the best financing. Check out all three just to make sure. Your next step in the auto equity loan process is the application part.
Once you know which auto equity loan company you re going to go with, you need to know how to apply for this auto equity loan. Some auto equity loan companies have you apply online while others will have you do it in person. Keep in mind that you may have to bring some things to this application process such as your car title, valid proof of insurance for the vehicle, a photo identification, and possibly an extra set of keys depending on the company. Again, I can't emphasize enough how important it is to read over all of the terms of this loan. You definitely do not want to get yourself into financial turmoil with this loan. Calculate all fees, payments, and other charges there so you know you can pull it off. Remember, this loan isn't the same as credit card debt or student loan debt. They will come after your car if it is not paid back in time. Just keep this all in mind during the application process.
Going through a auto equity loan company is basically like going through a third party. It is basically your last resort after your friends, your family and your financial institutions have all turned you down. Because of this, auto equity loan companies charge an insanely high APR to use one of their loans. The APR of any auto equity loan out there is about 300%. This means that you will be paying 25% each month. If you take out a auto equity loan for $1,000, that auto equity loan is going to end up costing at least $1,250 at the end of the month regardless of any add-ons, service charges, and maintenance charges you have on the vehicle.
Like I would always recommend, the absolute best way to buy a car is to buy it outright in cash. I also wouldn't recommend buying a very expensive one at that. The reason for this is it is way better for you financially. You don't have to worry about a monthly car payment. Something these car payments can cost hundreds of dollars each month. In the end, it can really take a toll on you financially. The next thing that I would recommend doing is going to your local bank or even better, your local credit union and see if they will give you a car loan. If you have a bad credit history, this may be hard to do. In the end, go with Miami title loans. They won't let you down!