Getting a Car Title Loan in California: Pink Slip Collateral Loans

January 27, 2012

It is easy to get a car title loan in California, and all you need is your vehicle's pink slip or California certificate of vehicle ownership as collateral to loan agencies. This type of car loan is preferred over other methods such as a car title pawn, wherein the lender will hold on to the vehicle while the loan is active. A pink slip loan is different, as it lets the owner keep the car even while under the obligation of a loan. A lot of people have taken advantage of the pink slip loan. Websites that specialize in pink slip loans in California will give you a fair assessment on the loan amount based on your car's value or equity.

1. Why a Pink Slip Loan?

A pink slip loan is preferred because:

  1. As previously mentioned, the owner has the benefit of keeping the car while under a loan.
  2. The process is fast and easy.
  3. It does not require a good credit score. 
  4. An instant quote is available online, saving time and money.

Another good thing about pink slip loans is that the money is made available immediately once the application is approved. This is great for emergencies or sudden expenses that need to be ironed out fast.

2. Value of Car = Loan Amount

A typical pink slip loan in California will base the loan amount on the blue book or fair market value of the car at present. It would be natural that a new vehicle would give the owner a higher loan amount that is available. Other factors include:

  1. Overall vehicle condition.
  2. Total mileage of the car.
  3. Make and model year of the car.

There is an industry standard when it comes to price appraisal of car models and are generally followed when in regards to pink slip loans.

3. Any Brand Accepted

It is often said that as long as the car has value, then cash would be made available for you. Most pink slip lenders accept any make and model car as long as it is presentable and worthy of daily use. Make sure that the car title is in order to prevent any delays on the application process.

4. Low Interest Rates

Pink slip loans in California offer competitive rates when it comes to loan interest and are considered the lowest in the industry. Actual figures may vary, but most lenders charge a 6.6% interest rate, which makes it easy and affordable for most car owners. Most lenders offer a 24 to 44 month loan term for easy payment and could even approve such loans on a weekend when other lending institutions are closed.

A pink slip car loan is a good way to obtain extra cash without sacrificing the much needed utility that your vehicle offers. Online loan applications make the process fast and with less complications. When in need of immediate or emergency money that offers no penalties even on early pre-payment of loans, a pink slip loan in California may be the option that is best for you.    



Related Questions and Answers

How to Apply for a Car Title?

The first thing to do is find the vehicle's VIN number. If you have the current registration paperwork it should be on there. You will need to find a request for duplicate title form. These are available from your local DMV office or their website. This form needs to be filled out and notarized. If there is a lien against the car, like a car loan, you will need to have a representative of the bank sign the form as well. The form and the fee will than need to be filed at the DMV. The new title will be sent to you, but it can take up to 10 weeks to receive it.

How Do I Get a Copy of My Car Title?

The procedure will vary by state, but in most cases it is the same. You will need the VIN of the vehicle. This is usually located on the dash by the drivers side. It can be viewed through the windshield. Your local DMV office should have a duplicate title request form which will have to be filled out and notarized. If the vehicle has a lien against it, the lien-holder will have to sign off as well. When all of this is complete, the form needs to be filed with the DMV. They will mail the duplicate title to your home. It can take up to twelve weeks.

What is a Collateral Loan?

A collateral loan is a loan that is secured with collateral, or items that the bank can sell in the event the loan is not paid. When a collateral loan is signed, the borrower is giving the bank the legal right to sell whatever assets that have been listed as collateral on the loan. Common items that are used as collateral would be stocks, bonds, property or a home. Vehicles that are owned outright can also be used as collateral. These types of loans often offer a lower interest rate as repayment of the loan is guaranteed.

Do Loans that are Using Cars as Collateral Have a High APR?

Loans using cars as collateral tend to have a lower interest rate. Collateral loans are loans that require items to be put up as collateral in the event that the loan is not repaid. If the loan goes unpaid, then the bank or finance company has the right to take the collateral and sell it to pay the loan off. If a car has been put up as collateral and the loan is not paid, the bank will repossess the car and sell it to pay off the loan. Because the loan is guaranteed by the collateral, the interest rate is often less than an unsecured loan.

What is a Title Loan?

A title loan or car title loan is a loan secured by the title of a vehicle. The borrower puts up their vehicle title as collateral in the event that the loan is not paid. In many cases these are short term, low dollar amount loans. The lender typically does not do a credit check, which means this type of loan will carry a higher interest rate. If the borrower defaults on the loan, the title of the vehicle is transferred to the loan company. They will sell the car to repay the loan.

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