If you recently took out a title loan and ended up with a higher interest rate than expected, or if your monthly payments have gone up, without your balance going down, you may want to look into a buyout.
A buyout occurs when a new lender pays off your existing title loan and issues you a new loan with different terms. Your new lender will pay off the existing balance, release the lien, and then place a new lien on your car's title.
Many auto equity lenders offer loan buyouts, but shopping around to find the best company and terms for your situation is essential. Some lenders in California will offer higher interest rates or fees than others, so you must research companies before applying. You want to find a company that offers better customer service than your current lender, along with lower rates and more favorable payment terms.
What To Look For With A Title Loan Buyout:
- Lender Reputation - What is your lender's reputation regarding refinancing or paying off existing title loans? Do they have decent online reviews, and have they successfully bought out existing loans for borrowers who were behind on payments or at risk of repossession? Most of the larger title loan companies have extensive reviews online, and you should be able to gauge how well a company did with previous buyouts.
- Rates and Fees - How much does each company charge to buy out an existing title loan? Can they get you a lower APR than what you currently have? Perhaps they have a better payoff term, but the fees may not make getting a title loan buyout worthwhile. Only consider a buyout if your rates and terms are better than before.
- Underwriting Requirements - Just because you get a lower rate or favorable payoff terms from a company offering to take over your loan doesn't mean you should instantly move forward with them. Other things to consider with a title loan buyout include underwriting requirements, such as whether you can continue driving the vehicle during the loan period or whether the lender requires physical possession of the car. Also, does your new lender want to place a GPS tracking device on your vehicle? Consider all aspects of your new lending terms during the underwriting process before moving forward.
- Customer Service & Experience - Hundreds of companies across the country offer car title loans, and many offer buyouts for people who are in default or dealing with a potential repossession. But it pays to know how much experience each company has and whether they can buy out your title loan at a better rate than you currently have. Your lender needs to be on the same page as you and willing to develop an effective solution if you ever default or fall behind on payments.
What Are The Requirements For A Title Loan Buyout In California
Qualifying for a buyout involves similar underwriting to a typical title loan with a few additional considerations. For instance, are you still current on the monthly payments, or have you fallen so far behind that the lender wants to repossess your car? Other requirements are similar to what you'd expect with a typical title loan. Your vehicle must be free of any liens other than the one held by your current title loan lender, you must have proof of income, and the car must be worth significantly more than the existing title loan. This last part comes up often during title loan buyouts, as some customers may still owe quite a bit to their original lender, but during the time they've been paying off the loan, the car has significantly depreciated.
Look for a title loan buyout with a licensed California company that offers pink slip loans. There's no risk in applying to multiple title loan companies to see whether they're willing to buy out your loan and offer better terms.
How To Find A Company That Will Pay Off Your Existing Loan
Are you looking to get a buyout processed and underwritten completely online? Or would you prefer to meet with a lender in person to see if they can pay off your existing balance and offer better terms? You can do everything with California Title Loans, as we work with companies that pay off online title loans. In most scenarios, a buyout can be processed and funded by a California-licensed lender within 1 to 2 business days once your vehicle and loan details are confirmed.
For customers who want to meet with a representative in person, that's no problem. Loan buyouts sometimes have a streamlined underwriting process, as the vehicle has already been assessed and the loan has already been funded by the original lender. Ultimately, your lender needs to see where you're at with the company currently holding the car title. Are you already in default, or has the vehicle been repossessed? If you're still current on your payments and want to reduce your monthly payments or get a lower APR, a new lender will likely offer to buy out the existing loan.
Don't hesitate to contact California Title Loans to learn how we can help with a buyout or an online title loan. We work with licensed lenders in California and may be able to help you find a lower interest rate through a buyout or refinance, whether with a new lender or your current one. Apply online or call us at 855-339-1001 to find out if a buyout could lower your interest rate or reduce your monthly payments.