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BlogBlogAren’t Car Loans and Car Title Loans the Same?

Aren’t Car Loans and Car Title Loans the Same?

A car loan and a car title loan are two very different types of loans. While car loans are almost a part of our everyday existence, the car title loan is not as widely known. Title loans have become more popular over the last decade as borrowers look for other means of borrowing money. Here are the key differences between these two types of loans.

The Standard Auto Loan

When someone wants to buy a vehicle these days, the norm is to finance the purchase. It is rare that a car buyer pays $20,000 or $30,000 in cash for a new vehicle. It is likely that a buyer seeks out a loan to make the purchase. Car loans are available from several different institutions including banks, credit unions, and even through the credit departments of the major auto companies.

When buying a car, the financing process will involve the examination of the borrower’s credit report as well as an evaluation of the person’s income and assets. The lender wants to make sure that the borrower is fully capable of repaying the loan. Good candidates will have higher credit scores and payment histories that show that they pay their bills on time.

A car loan is usually for several years, periods of five, six, and seven years are standard. Buyers can make a down payment but, in some cases, they are not required. The borrower, if approved, will make a monthly payment for the vehicle. Once the buyer repays the loan in full, he or she owns the car outright.

A Car Title Loan

A car title loan is not used to purchase a car. An individual already owns a vehicle and uses that car or van as collateral for a loan. Car title loans are for when someone needs fast access to cash. Embassy Loans is one of the largest consumer finance companies in Florida and has helped tens of thousands of customers with car title loans.

To qualify, a borrower must own a vehicle outright. There are some requirements for the vehicle, and it should be in good condition. The car title loan process is different than the typical car loan process. Credit checks are not necessary and minimal income information is needed. Not requiring credit checks helps to speed up the process. Embassy Loans can complete many of its loans in as little as 1 to 2 hours. Loan terms are also different, with the average car title loan typically repaid within 12 months.



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.