Terms and conditions can vary widely between providers, so you could end up paying a lot more in interest and fees than you should.
Here are five things you should consider when comparing your car financing options to ensure you get the lowest rates and best service.
- Your Car’s Value Will Determine How Much You Can Borrow
Title loans for cars are based on the value of the car, which acts as collateral that the lender can claim in the event that you default on the loan.
Lenders tend to offer up to 50% of the value of your car. So, you should find out how much your car is worth and compare the amount that different car title loan providers offer to lend.
- Choosing a Full-Service Lender Can Result in Better Service
There are two main options for loan providers: full-service lenders and lenders that buy and sell loans. A full-service lender is likely to be more focused on customer satisfaction and ensuring that your car title loan application succeeds. A loan trader is simply concerned with packaging up loans to buy and sell for a profit.
- Your Provider Should Have a Good Track Record
Make sure you choose a reputable lender that has full licensing and accreditation. Your lender should be an experienced car financing firm that has many years of experience in dealing with customers like you.
Check out customer reviews and testimonials online or ask the company to provide them. A company with a good reputation is likely to offer the best service. Avoid providers with negative reviews.
- Your Loan Should Have a Competitive Interest Rate
Interest rates on an auto title loan are usually much higher than other types of loan, and they vary between lenders. Your credit score has an impact on your interest rate, so you should research the kind of rate you are likely to receive, then compare
- Watch Out for Hidden Charges
When comparing loan prices you should also check the terms and conditions of the offers to make sure the lenders do not charge hidden fees that can affect the total amount you will repay.
Unlike other types of loans or credit card borrowing, paying off loans from car title providers should be a straightforward process with all the fees listed upfront.
Research Car Title Loan Providers to Get the Best Deal
It is important to do your research when comparing loan prices to get the most competitive deal for your circumstances. Different car title loan providers offer different options, so you should make sure you choose a reputable lender with a history of providing a good service. Compare interest rates and loan amounts to find the best loan for you.
For more tips on managing your money, check out the finance section on our blog.