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The Value of a Car Title Loan

Cars-ValueIf you have tried to get a conventional loan recently, you are aware that standards have changed since the financial crisis that affected the nation in the late 2000s. As a result, alternative loans such as car title loans have become more popular. An auto title loan is one that is secured by a vehicle. As a result, the processing of the loan is much different.

 

At Embassy Loans of Florida, someone who owns a vehicle that is paid for and is less than 10 years old can qualify for a car title loan. In some instances, it is possible to secure a title loan when there are still payments remaining on a vehicle. Usually, lenders will require that there be 12 or fewer remaining payments. Also, it may be possible for older vehicles to be used depending upon their condition and value.

 

To secure a car title loan, a person must fill out an application to start the process. At Embassy Loans, applications can be filled out at one of the company’s many convenient locations or they can be filled out online. Once the application is complete, applicants must submit documents that will verify their identity and residency. The title must also be submitted and the vehicle identification number (VIN) must match that of the vehicle.

 

The title loan company will then assess the vehicle to see how much it is worth. Most lenders will use a blue book value and then lend approximately 50 percent of that value. Lenders will not loan the full amount of the car or truck in case the borrower defaults. This way, the lender can sell the vehicle and recover most, if not all, of the losses.

 

There are no credit or background checks as there are with conventional loans. An auto title loan is not based upon credit, so there is no reason to check. Some lenders may do a credit check, but the loan is not approved or denied because of credit. Without a credit or background check, a car title loan can be processed in as little as a few hours. In most cases, these loans are completed in an hour.

 

This is the real value of a car title loan. It is a fast and easy way to access money in a short amount of time. The loans are short-term and do have higher interest rates than most loans, but being able to access cash for an emergency and not have to worry about a credit score make car title loans very valuable.



Embassy Loans is a leading provider of auto title loans since 2005

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Embassy Loans Inc. is licensed under the “Florida Consumer Finance Act” and as such Embassy Loans is exempt from any licensing requirements under the “Florida Title Loan Act” to the extent that any of Embassy Loans’ activities involve the making of a loan of money to a consumer secured by bailment of a certificate of title to a motor vehicle.

Monthly Interest Rates range from 1.5% to 2.5% (18% to 30% APR), with 15-18 Month Terms.

No Prepayment Penalties!

Embassy Loans uses “Title Loans” for advertisement purposes only and provides auto equity loans. Embassy Loans Inc. is licensed under the “Florida Consumer Finance Act” under Florida Statute 516 and as such Embassy Loans is exempt from any licensing requirements under the “Florida Title Loan Act” to the extent that any of Embassy Loans’ activities involve the making of a loan of money to a consumer secured by bailment of a certificate of title to a motor vehicle.

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Frequently Asked Questions

What is an Auto Equity Loan?

An auto equity loan, sometimes known as a car title loan or a car equity loan, is a type of loan that allows you to borrow money by using your vehicle as collateral. The loan is secured by your vehicle, meaning you agree to use the equity in your car to back the loan. 

What is an Unsecured Personal Loan

An unsecured personal loan is a loan that does not require collateral. Funds are provided based on your credit worthiness and your ability to repay. 

What Is the Credit Builder Program

The credit builder program is designed to help individuals establish or improve their credit score with the primary purpose of building a positive credit history through regular payments.

Can i have more than one Loan at a time?

Embassy Loans can only extend one loan at a time and it’s advisable to start with one and focus on making payments in a timely manner to prevent default.

What happens if I miss a payment?

Missing a payment can have negative consequences, including late fees, a drop in your credit score, and potential default on the loan. Consistent, on-time payments are crucial to benefit from the program.