Are you looking for some financial options to help you buy a new car? Sometimes coming up with the 10-20% down payment towards your vehicle can be a hard thing to produce. If you own your current car, you can use the equity in your current vehicle as the down payment towards the purchase of your new car. This is a great opportunity to be able to gain back what you lost on your current vehicle after you drove it off the lot… Did you know that once you drove your current vehicle off the lot it decreased in value by up to 30% the same day?
Getting a title loan for your next car is a smart thing to do. If you currently own your vehicle and have not yet gotten the equity out of it, you should consider a title loan. All you have to do is prove you own your current vehicle and then you can take out a loan on your car. Simply return the loan on time and you will be able to reclaim your vehicle title.
Here are 5 reasons to consider an auto title loan to use towards the purchase of your next vehicle.
1-The down payment is too high.
- 10-20% for a down payment can be a lot to come up with. If your down payment toward your new car is too high and you need to borrow money elsewhere, you can apply for a car title loan to get you the cash you need to buy your new vehicle. You can even get an answer applying online the same day. I had a friend recently leverage his current truck with a car title loan for a down payment for his son’s new car that he was taking to college.
2-You don’t have credit but can pay cash.
- If you don’t have credit and you have mostly saved up the cash to purchase a new vehicle and still need to come up with a little more, you can get a title loan on your car to make up that difference to buy out your new vehicle and pay smaller payments on the title loan over a longer period.
3-Car title loans can be paid off at any time.
- If you have a car title loan, your terms do not lock you into having to pay the interest payments until the end of the loan. What is great is that you can pay out your title loans at any time without penalties and get your title back in hand.
4-The payments are extremely affordable.
- Your car title loan servicer will make sure your payments are kept low. The last thing a loan servicer will want is for you to default on your payment and have to keep your car title so they ensure they provide you longer terms with smaller payments to ensure you are given the ease of ability to make payments and on time.
- They have your back and make it easy for you. The only catch is that these smaller payments over a longer period could come with some high-interest rates… but the nice thing is, you avoid these by paying your loan out early.
5-You can keep your current vehicle as you are making payments on the loan.
- During the period you have your title loan out, you can keep your vehicle and not have to worry about losing it when you get your cash. The only time you would have to worry about losing your vehicle with a title loan deal is if you didn’t make your payments. This is not something you will have to worry about as long as you have a steady income and a backup plan in case you can’t make the small payments required.
If you are financing a new vehicle and you also want to make sure you have the best terms and payments with the banks, you can be sure that the banks will give you these with a better size down payment towards your new vehicle. The banks reward a large down payment towards the purchase of a new vehicle because you are showing a bigger commitment to the loan they are providing you. A bigger down payment also provides the bank trust that you have saved up the down payment so that must mean you are a responsible person.
With car title loans being used all the time these days, there are a million different reasons people are using them from needing a downpayment, paying off debt, and for emergencies. Car title loans are now more common than you would think and now you understand how you can leverage your vehicle’s equity along with a million other people who are taking out vehicle title loans every day.