Thinking about getting a car title loan but don’t want to undergo a vehicle inspection? While most auto title lenders require vehicle inspections, not all do. As online lending has expanded and becomes more common, some lenders now offer options to apply entirely online without needing to inspect your vehicle. It’s important to point out that you have a better chance of getting approved when someone verifies the car; these types of companies are rare. But you can sometimes find a lender to work with you and bypass an inspection.
How Online Title Loans With No Inspection Work
Short term lenders compete against each other for your business, and there’s more demand than ever. To make the loan process easier and get ahead of the competition, some lenders (mainly those online) offer their pink slip loans without requiring an inspection of your vehicle. But how can they hand over cash without physically seeing your car? Vehicle inspections are not only tedious for borrowers, but they can also hold lenders back from extending the volume of loans they want. In some cases, lenders can see delays of days or weeks in getting an application processed if they have a backup with the inspection process.
Companies need to hire an expert to evaluate the condition of their car, and all those small expenses add up. An alternative route that some lenders have taken is to skip them altogether and ask for other information, such as:
- Basic information about your car
- Several photos of the car/possibly videos
- Vehicle history report
- A valid car title in the borrower’s name
- Proof of income
- A government-issued identification
- Proof of residence
- Proof of insurance on the vehicle
Lenders gather as much information as they can from a distance to assess your vehicle’s value. These details can give them insights into your vehicle’s condition and personal financial situation that they otherwise may overlook with a quick inspection. You can often send photos of the above documents using your smartphone so you don’t have to leave your house. Further, some lenders even offer financing that’s based on the title loan laws by state. An auto title loan without an inspection sounds like a win-win, right? Well, here are the pros and cons you should keep in mind.
Pros Of A Title Loan Without A Vehicle Inspection
The convenience factor is the most significant advantage of title loans without vehicle inspections. Removing that requirement opens the possibility of an online application for a fast approval title loan. You can get money in your hands fast, similar to an online unsecured personal loan. Other advantages include a lower level of scrutiny when assessing your vehicle’s value which may result in a higher loan amount. You don’t have to be physically near a lender to get the cash
. This gives more people access to quick money from auto title loans.
Cons Of An Auto Title Loan With No Vehicle Present
The main drawback of auto title loans without a vehicle inspection is that they present more risk for the lender. As a result, you will likely have to undergo a credit check and may face stricter income requirements.
You also risk getting less money than your car is worth due to the higher risk associated with a secured loan without an inspection.
Is a title loan without a vehicle inspection right for me?
Online title loans from a lender that doesn’t require vehicle inspections can be an excellent fit for some, especially if you are web-savvy, have fair credit, and need money fast. Online lending can make your loan process much more manageable while speeding up your time to funding.
If your credit isn’t great and you don’t feel comfortable getting a title loan online, the better bet may be a traditional store-front lender, even though they mask to look at the vehicle. Further, if you can’t get approved with an online car title loan lender, you may have a better shot in person as they can appraise your car, lowering their risk. While skipping the vehicle inspection in the vehicle equity lending process certainly has its advantages and will be a great fit for some, it does make it more challenging to get approved and can make the loan more expensive.
How do I get approved for a title loan without someone inspecting my car?
Most lenders require Vehicle inspections, but there are some title loan lending companies that allow you to get cash without an inspection. Over the past few years, some online-only lenders have extended car title loans without them. However, you may run into stricter credit and income verification requirements. It’s often best to determine what monthly payments and payoff range to expect before you apply. Get a few quotes from direct lenders and input that information into our car title loan calculator to determine your options.
