If you need money, you can get it through various means. You might find a higher-paying position or take on a second job. You may ask family members or friends about loans.
You can also approach credit unions or banks and get loans that way. You can get unsecured loans with excellent credit, and you should get reasonable interest rates. If you have not-so-good credit, you might still get a loan offer, but you’ll pay higher interest.
You also have secured loans. You put up your house, car, or something else valuable as collateral. Title loans use your car as the asset you’re leveraging. Some lending entities let you do this.
Can you get old car title loans, though, or must you have a new car? We’ll talk about this in detail right now.
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Old Doesn’t Always Mean Classic
Usually, if you approach a lending entity about a title loan, you have a car that’s worth some money. If you have a brand-new car, for instance, and you know it’s valuable, you should get a title loan with no problems. The lending entity can see you have something that makes appropriate collateral, and they’ll hand over the loan without delay.
You may have an older car, though. It might not have classic car status. It’s simply a vehicle you’ve driven for twenty years or more, and perhaps it has many miles on it.
Old cars don’t necessarily mean classic cars. If you have a beautifully restored and maintained 1964 Aston Martin DB5, that’s not like owning a beat-up, pea-soup green Chevy Vega from 1972.
Older cars don’t always have much value, so you must consider that when approaching credit unions or banks about title loans. Classic cars will probably get you the money you need, but old jalopies that can barely run will not.
An Assessor Must See the Classic Car
Let’s say you have what you call a classic car. You have the title and own it outright. You maintain it and keep it running nicely.
If you say you have this car and want a title loan, a bank or credit union’s assessor might look it over. These individuals know cars. They can assess the classic car’s quality and make sure it’s worth what you claim.
If you have insurance for that car, that can help you get the money you want. The bank or other lending entity always wants insurance on the vehicles they grant title loans.
The Processes Might Take More Time
You can usually get the money you want through a title loan on your classic car. It might take longer than you expect, though.
When a bank or some other lending entity looks at new cars and assesses their value, they can easily determine that by looking at Kelley Blue Book or a similar resource. If you have something much older and rarer, though, it might take more time to figure out its value.
If you want $2,000, the lending entity can probably grant you that title loan fairly quickly. If you want much more than that, and you say the lender should use your classic car for collateral, they might take longer to figure out whether they can grant you the amount you seek.
Some people get car title loans because they need money fast. If you need the cash very urgently, you might feel some frustration while you wait. In time, the lending entity can determine your classic car’s value. This potential drawback might mean you try some other method when you need money fast, though.
Should You Do This?
If you get a car title loan, you probably do it because you need the money urgently. When you get this loan type, though, understand that some risks go along with that.
If you can’t pay back that loan on time, you can go into default. The bank or other lending entity might contact a collection agency. If they do, the agency can legally repossess your car. You may still get it back, but only if you get the money you borrowed and hand it over.
Some people love their classic cars, so you should probably not risk yours unless you have no choice. Getting unsecured loans might work better, and you’re not risking such a valued possession.
If you feel confident you’ll pay back the loan expediently, go ahead. Your classic car can fetch a large sum if you need it.
Read Next: Top 6 Things You Should Consider Before Buying A Car