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 become more common, some lenders now offer car title loans without needing to inspect your vehicle. It’s important to point out you have a better chance of getting approved with an inspection, and these “no inspection” companies are rare. But you can sometimes find a lender that will work with you and bypass an inspection. How does it work, and should you get one? Here’s what you need to know.
How do car title loans work without vehicle inspections?
Short term loan lenders are competing 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 back lenders from extending the volume of loans they want to lend. In some cases lenders can see delays of days or even 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 your 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
- 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 on your vehicle condition and personal finance 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.
The biggest advantage of title loans without vehicle inspections is the convenience factor. Removing that requirement opens up the possibility to get car title loans completely online. You can get money in your hands fast, similar to the process of 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. Plus, you don’t have to be physically near a lender to get the loan. This gives more people access to auto title loans.
The main drawback of auto title loans without a vehicle inspection is that they do present more risk for the lender. As a result, you will likely have to undergo a credit check and may face stricter income requirements. If your credit or income is in really bad shape, they could impact your ability to get approved or could lower the loan amount you can get.
Additionally, if you aren’t very tech-savvy, submitting all of your documents online or via a mobile device could be challenging. You also run the risk of getting less money than your car is worth due to the higher risk associated with a secured loan without an inspection.
Is an online title loan without a vehicle inspection right for me?
Online title loans from a lender that doesn’t require vehicle inspections can be a great fit for some, especially if you are web-savvy, have fair credit, and need money fast. Online lending can make your loan process much easier while speeding up your time to funding. You may even find a brick-and-mortar car title loan lender willing to lend to you without an inspection. However, this is not very common.
If your credit isn’t great and/or you don’t feel comfortable getting a title loan online, the better bet may be a traditional store-front lender despite the inspection. 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 actually appraise your car which lowers their risk. While skipping the vehicle inspection in the vehicle equity lending process certainly has it’s advantages and will be a great fit for some, it does come with some costs so won’t be the best choice for everyone.
What are the odds I can get approved without someone checking out my car?
Vehicle inspections are required by most car title loan lenders, but there are companies that will allow you to get cash without an inspection. Over the past few years we’ve seen some online only lenders extending car title loans without them. However, you may run into stricter credit and income requirements.