This type of loan uses your car or truck as collateral; to qualify, all you need to do is drive yourself (along with the title in your name) to the lender. The lender will then conduct a vehicle appraisal to determine the loan amount, and you could have the cash you need within minutes.
You keep the vehicle, but they retain the title until the loan is paid in full. You don't need good credit (or any credit!) to qualify; all you need is a vehicle to literally turn your car title into cash.
What could be simpler, correct?
Yes, it is actually quite simple to obtain an auto loan, but be very cautious not to make this loan your financial ruin!
If you are contemplating an auto loan, you are certainly not alone: the market for auto loans may be even larger than the market for payday loans. Money is tight and times are difficult!
However, this does not mean that you should disregard the potential risks, and if you are contemplating a car loan, these risks can be crucial! Before applying for an auto loan, you should ensure that you will be able to make on-time payments.
If you fail to repay your auto loan on time, you could lose your car. In this circumstance, the lender has the right to sell your vehicle and keep the proceeds. And, if you use your vehicle to get to work, losing your vehicle could result in losing your job.
In addition to high interest rates, there are numerous fees that can quickly accumulate.
Always inquire about the lender's APR (annual percentage rate). Why? Well, it is likely that you will be quoted the monthly percentage rate; however, keep in mind that a monthly rate of 25% is equivalent to a yearly rate of 300%! Clarify precisely how much you are expected to pay!
If you are enticed by the promise of quick cash, you are in for a rough ride!"""