Did you recently take out a car title loan only to see a higher APR than you first expected? Or have your required monthly payments increased with little reduction in your balance? You may want to look into a title loan buyout in situations like these, as paying a high interest rate makes little sense when you don't have to. A buyout occurs when a new lender purchases an existing title loan and gives you a new title loan with different terms - usually at a lower interest rate or better payoff amounts.
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. The bottom line is that you want to find a company that provides better customer service than your current lender, 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 that may have already defaulted or been repossessed? 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 interest rate, 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 a title loan buyout 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 to drive the vehicle or whether the car itself (not the pink slip) must be used as collateral. Also, does your new lender want to place a GPS tracking device on your vehicle? Consider all aspects of your title loan buyout during the underwriting process before you move forward with new lending terms.
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 Current Laws & Restrictions Regarding Title Loan Buyouts
You must meet specific requirements to qualify for a title loan buyout. 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? Or do you have a guarantor who will pay off your title loan if you cannot? Other requirements for a title loan buyout in California 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 loans for pink slips. 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.
Find A Local Company That Pays Off Title Loans
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 down the balance owed? You can do everything with California Title Loans, as we work with companies that pay off online title loans.
For customers who want to meet with a representative in person, that's no problem. A title loan buyout sometimes has far fewer underwriting requirements than a typical title loan, as there's already a lender who's underwritten and funded your original loan. 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.
Title Loan Buyouts In California
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 we may be able to help you find a lower interest rate with a buyout or refinance. Apply online or call us at 855-339-1001 to see if a title loan buyout could reduce your monthly payments.