How to Get a Car Cash Loan

January 27, 2012

Getting a car cash loan is a very simple process that can get you quick cash in exchange for your car. There are only a few steps in the process, and you can have your money within days of completing the process. First, what is a car cash loan? Basically, a car cash loan is a car title loan, where you put your title of your car up as collateral. The lender will take possession of your title, but you can still drive the car while the loan is still in process. You get your money, then you pay it back relatively quickly, and the process is done. Here is a step by step way to get your loan.

Step 1: Online / Research

If you want, you can get car cash loans online, and there are many websites that do that. They make the process automated, and can get you cash within a couple days. There are articles on specifically doing it this way, but it is an option. Most people rather do an in person deal though. You should research potential lenders by looking on the Internet for reviews, and contact information. Once you find your lender you want to go to, set up an appointment, and go on to step two.

Step 2: Sit Down

Sitting down with your lender is a key meeting. This meeting will determine many things, including how much your car is worth, as well as the interest rates. This is a process that more and more people are starting to use, but many have not dealt with this type of secured loan before. Many people have borrowed off of their home, but never their car. This is the time to ask any questions to the lenders on the process, how it works, and any key things that you should know. The lender will tell you the interest rates, and you want to get the lowest rate possible. Since they are short loans of typically 30 days or less, the interest rate is fairly high. It is not unreasonable to see them charging about 20% in interest. This is not a bad thing for someone in dire need of money. However, what may be more important is how much the interest rate will be if you miss the first payment. Missing payments will only cost you money, and the interest rates raise quickly. Another part of this process is the valuation of your car. This will determine how much you are allowed to borrow. If your car is valued at $20,000, that doesn't mean you can borrow that much. You can usually borrow about half of that.

Step 3: Finish the Deal

Those first two steps make up the brunt of the process. All that is left is to sign the papers and you can get your money. There are no credit checks involved because it is a secured loan with collateral. You can either walk out with your money, or get it in a day or two. Just make sure you can pay the loan back on time, or else you will be paying a lot more than you originally thought.

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