topic Re: How does a title loan work? in Auto Loans

How does a title loan work?

Anonymous — Wed, 31 Jan 2018 18:54:17 GMT

It's going to take about $2,000 to fix up my van and the shop suggested that I get a title loan. It needs new tires, brakes, both rear wheel bearings, right side CV shaft and it's way overdue for a tune up. The Van is a 2005 Chevy Uplander with 135K miles.

I'd like to be able to go to a bank or reputable lender. Do these loans get denied based on your credit? Would this be the same as a refinance? My van was paid off back in 2010.

Re: How does a title loan work?

Anonymous — Wed, 31 Jan 2018 19:21:55 GMT

When someone say's title loan, what come's to my mind is a very high interest loan shark type of loan..in which case I would steer clear of.

How is your current credit situation? Do you have any credit card's with current promotion 0% offers?

I would try to possibly finance your vehicle with a local bank you have a relationship with and see if they will do a 2k loan for 12-24 month's. Stay away from a Title Loan place charging 20%+ interest.

Re: How does a title loan work?

Kree — Wed, 31 Jan 2018 19:26:49 GMT

wrote:
When someone say's title loan, what come's to my mind is a very high interest loan shark type of loan..in which case I would steer clear of.

How is your current credit situation? Do you have any credit card's with current promotion 0% offers?

I would try to possibly finance your vehicle with a local bank you have a relationship with and see if they will do a 2k loan for 12-24 month's. Stay away from a Title Loan place charging 20%+ interest.

DCU offered me a 3.49% title loan when I was looking at a personal loan, Don't even have the title, still paying DCU for the car, but when the equity available was much less than I needed I didn't go for it.

Re: How does a title loan work?

Anonymous — Wed, 31 Jan 2018 19:32:23 GMT

I understand there are different types of "title loans" but I believe the title loan the repair shop is referring to in this situation is less than desireable.

In which case I would steer clear of, find a local bank or a CU willing to finance your vehicle as colatteral at a decent rate if you qualify.

Re: How does a title loan work?

Anonymous — Wed, 31 Jan 2018 20:19:32 GMT

I just got a new Citi double Cash with a CL of $1,000. I'll only be able to do some of the work and the card will be maxed out.

Re: How does a title loan work?

Anonymous — Wed, 31 Jan 2018 21:07:38 GMT

I wouldn't suggest maxing that card out..do you have any other card's? how are your scores? If you qualify for a Citi DC I would think you should qualify for a small auto loan (using your paid off van as collateral) to pay for the repairs. You may also get a second opinion from a different shop regarding the repairs. Often times repair facilities take advantage of people recommending things get fixed that really don't need to be, and so on. A second opinion is always a good idea in my opinion.

Re: How does a title loan work?

Watchmann — Wed, 31 Jan 2018 22:51:25 GMT

A title loan is a loan given using a vehicle's value as collateral. The loan company puts a lien against your vehicle's title which you surrender to them when you get the loan. If you default on the loan the loan provider has a lien against your vehicle. It can work in a pinch if you are confident that you can repay the loan, but I would not recommend using this method unless you just don't have other choices.

Re: How does a title loan work?

Anonymous — Wed, 31 Jan 2018 23:46:38 GMT

I would definitely shop around to make sure you are not overpaying for the work. 2k is pretty much the value of the car so would be upside down on the title loan instantly. You will also have to add full coverage insurance (assuming you don't have it already) which depending on your record will easily be atleast a couple hundred every 6 months if not much more. So IMO shop around and see if you can get an unsecured loan to avoid needing 1st party coverage on the car.

Re: How does a title loan work?

tricie17 — Thu, 01 Feb 2018 00:49:45 GMT

I know sometimes it is easier to go for what may seem viable however, what seems short term (title loan) becomes long term and more money spent than realized. Stay away from the sharks and think over what you can do. Even with using a small portion of Citi, such as three hundred and a portion of a paycheck or small loan from a prime company/CU, you should be fine. Think before doing!!

Re: How does a title loan work?

Anonymous — Thu, 01 Feb 2018 01:54:24 GMT

Sorry about the confusion, the shop told me to go to the bank and get a title loan. I have no idea what you call that type of loan, but it's from a bank. My own bank said they couldn't loan money on my van because in it's current shape, it isn't worth $2,000. My next step is to have a friend help with some of the work and save some money. They told me I would have better luck buying a newer vehicle with less miles and trading this one in.

Re: How does a title loan work?

sccredit — Tue, 06 Feb 2018 23:36:31 GMT

wrote:
Sorry about the confusion, the shop told me to go to the bank and get a title loan. I have no idea what you call that type of loan, but it's from a bank. My own bank said they couldn't loan money on my van because in it's current shape, it isn't worth $2,000. My next step is to have a friend help with some of the work and save some money. They told me I would have better luck buying a newer vehicle with less miles and trading this one in.

Hate to say this but this advice is probably right. Your van is worth MAYBE $2k, if youre lucky.

Re: How does a title loan work?

sarge12 — Mon, 25 Jun 2018 07:35:26 GMT

A title loan is provided by title loan companies which are often the same places that do payday loans. Both are at outrageous interest. Almost a modern day loan shark, except they wont physically harm you. No way I would advise anyone to use their services...they prey on the poor and desperate to make loans at interest rates that are unethical, and should be illegal in my opinion. They are even worse than finance companies. Even a cash advance on a credit card is likely cheaper.

Re: How does a title loan work?

Anonymous — Wed, 27 Jun 2018 19:31:34 GMT

@Anonymous wrote:
I just got a new Citi double Cash with a CL of $1,000. I'll only be able to do some of the work and the card will be maxed out.

I'd get a second opinion and tell them you need to prioritize this list of items. A good independent mechanic will tell you what you must do now and what can wait a little while. Spend $850 now . . . try to baby your van and drive it ONLY when necessary . . . minimize trips . . try to share some rides when possible . . . walk/bike/public transportation . . get that chunk paid off . . . get another round of work done . . . repeat until it's caught up.

Coming up with $2k is a struggle but if the motor and transmission are in good shape, these repairs are going to be way cheaper than any other solution.

Re: How does a title loan work?

Cookiegrabber — Tue, 03 Jul 2018 01:20:38 GMT

How about trying to replace a few of the parts yourself? Anything you do yourself would save you $$$ at the mechanic, which you'd still need for stuff (like tires) that you can't do on your own. Cost of labor >>> cost of parts, and if your CV shaft's gone, other things will start reaching end of life, too.

Your CV shaft is only $50 in parts, brakes $100 for all four rotors and pads, etc.

Rockauto.com has all the parts, Amazon/HarborFreight/(a friend?) has all the tools, and the know-how is on Youtube. EricTheCarGuy drones on for a long time but he shows every detail which is immensely helpful. Lots of other folk do quality videos, in shorter shots, like Scotty Kilmer and ChrisFix. I still get confused with windshield wipers but a lot of the new parts under my '97 Camry were put there by me. Saved a lot by going to the mechanic sometimes instead of all the time. Anything and everything that had rubber on it failed.