Can I Keep My Vehicle if I Use It As Collateral For A Loan?

Car To be used for a title loan application
Written By Robert Davidson

California is the largest State in America and many people want to know if they can borrow money with a car title. There are millions of cars on the roads today and many people know they can use the equity in their vehicle to get quick cash. It is through this backdrop that many car title loan companies have thrived. Car title loans give the consumers the flexibility to get instant loans with the car title as security. After the application process, you can drive away with your vehicle and get the much-needed cash. That seems straight forward on paper, but sometimes the process isn’t that easy. Things come up that cause consumers to miss payments. That’s where you run into problems and run the risk of losing your vehicle. Let’s get right into the details about whether a California resident can keep their vehicle while taking out an online title loan.

People get emergency cash loans for various reasons. You may have a medical emergency or there are bills that need immediate help. Many banks are usually closed during public holidays, and a secured loan can be the easiest way to get the much-needed cash. However, they come with high-interest rates and repossession of the loan by the pawn shop. Many people have a negative mindset when they hear the word pawn shop. They imagine this shop hidden in a corner with tough looking guys who are willing to rough you up if you default. But, modern vehicle equity lenders who operate online have changed this negative view. Short term financing companies are easy to reach and offer excellent customer support.

You will have to go online to find a company like that provides online car title loans in California. The following documents are required before you are given cash:

  1. Title of the vehicle which proves you are the owner of the vehicle
  2. Proof of income – can be a payslip
  3. Government-issued Photo ID
  4. Agree to the repayment schedule

Once you hand over the above documents, your vehicle is appraised. At this point, it’s possible to have your money within 30 minutes. The state of California has companies that enable you to drive away with your vehicle. The vehicle pink slip is held as collateral until you entirely pay the loan. In case you are unable to make all the payments, your vehicle can be repossessed and sold to recover the amount advanced. You should ensure this does not happen as the cash advanced is usually 50 percent of the appraised value.

Are there laws in California that allow me to borrow money on a car title loan?

Direct lenders are regulated by the California Department of Business Oversight Finance Lenders Law License. This has long been the main law in our State. Most of these loans are subject to the goodwill of both parties and reliability of information given. There are also regulations in place on a federal level that govern online lending. Many of these restrictions concern people taking out payday loans and cash advances. But they may still apply in this situation with secured loans. Be sure to check your state regulations and federal laws before entering into an agreement. The online title loan shops are also required by law to make available customer details to local law enforcement agencies. This is usually a measure to curb vehicle theft and also protects the customer if you face a repossession. Lenders have strict rules to follow when it comes to what happens if there’s a repossession. The company needs to hold your vehicle for a certain amount of time. They have to be forthcoming when your car sells at auction.

How can I determine the title loan value of my car?

Most secured loans will last for a short period that ranges from two weeks to a month. You should note that the interest rates increase the more you delay in repaying the loan. Most secured loans are not meant for long-term financing and this definitely includes no inspection title loans. You should reconsider if you think you cannot be able to repay the vehicle equity loan. The main benefit of using a vehicle as collateral is that you can drive your vehicle as you repay the loan. Another positive aspect is that you can get borrow a larger amount than a typical payday or installment loan.
Online car title loans are a great way to acquire short-term financing with your vehicle as collateral. They are easy to apply, and you can have your cash within 30 minutes. Unlike banks that issue loans based on your credit rating most online equity lenders don’t care about credit issues. If you can show proof of ownership of the vehicle and your government issued ID you should be ok.