What’s A Title Loan Buyout & How Can I Get One

 

A title loan buyout is primarily used to pay off your existing title loan. You can benefit from a quick payoff by saving more money than a traditional refinancing, or by consolidating your debts with one title loan lender at a lower rate. Either way, it will save you money. In fact, a title loan buyout will often give you an immediate discount on the payoff amount. Here at Car Title Loan Lenders USA, we can provide you with new terms and a better payoff amount through our Title Loan Buyout program.

 

How To Get A Title Loan Buyout

If you can get a title loan buyout by using a big bank loan, for example, it often allows higher returns on your money, because the big banks want to make as much profit from you as possible. There’s an added benefit of having the larger finance company pay off your original title loan lender knowing that you’re going to have a lower rate. But, if you use a title loan buyout, you can potentially reduce the size of your monthly payments so that they become more manageable with a quicker payoff.

Your new title loan lender can give you a competitive rate that’s normally a few percentage points lower than what the banks offer, as well as an attractive settlement that’s usually a fraction of the amount that a big bank will give.

 

Benefits of A Title Loan Buyout

The benefits of a title loan buyout or “early payoff” are apparent. You can avoid any risk of repossession with your current title loan company. Find a new lender and get a title loan payoffIf you’re late on payments, you can transfer the loan to a new lender and start fresh. Besides that, you can count on lower more manageable monthly payments that should go hand in hand with a lower APR. By having a new lender pay off your existing loan you’re moving from one title loan provider to another and hopefully starting with much better terms. And better yet, since a small amount of money is involved, and since the title is collateralized by the amount you owe, the amount that the title company will offer will be much less expensive than a comparable bank product. When interest is paid, a car title loan or even a semi truck title loan can usually be paid off within a couple of weeks, sometimes in as little as 1-3 weeks.

 

What’s Required for A Title Loan Buyout

You won’t be required to have very good credit in order to acquire a title loan, although most lenders do require that you have good enough credit to get them to approve your loan application. Typically the best title loan companies will take a wide variety of income, a driver’s license, age, employment status, and other extremely confidential data to ensure that they are entering into an agreement that you will repay.

You can get an estimate of the amount of your loan just by sitting at your computer, in the comfort of your home, and researching the current prices of title loans either in your state or online. The usual amount available with an online title loan for a buyout is the standard 40-60% of the vehicle’s resale value. This of course can vary from lender to lender and amount to, the loan amount you actually need.

 

What happens after I’m approved & when’s the payoff

After you are approved for a title loan and you have selected a vehicle that you own, you enter into a written contract with the loan company who will disburse the funds to you over the next several weeks. In most cases, you will receive the disbursement in full about 1 week after the disbursement. The amount of this loan will be about 25% of the estimated value of your vehicle.

 

After you repay the loan, in full within a few weeks if you wish, you can start the process all over again or return the money to the loan company who will keep it. There typically will be no charge for processing the loan, interest with added finance charges and marks, etc.

 

How is a title loan buyout different than a refinance

Lenders, more than often, take title loans to make up some of their loss when they take a vehicle title as collateral. That’s why they would prefer a title loan buyout versus a typical refinance. With a buyout, they’re getting all their money at once and the loan is paid off and they’re done with it. A title loan refinance on the other hand simply modifies or changes the payoff terms for the loan and they still need to collect the rest of the monthly payments.  If you are looking for a loan using a vehicle title as collateral, make sure that the value of your vehicle is anywhere from 50% to 100% of what your loan will be.

Many times, the underwriters for title loans love cars. They love cars because they make money if they are driven because you can lose that car if you don’t repay the loan. Since so many people are happy to use cars in order to get a short term loan, it is not unusual that more than not, the approved loan is for less than the value of the vehicle. That is how they protect themselves.

There are some very big benefits to a title loan buyout, even if you have a bad credit rating. That is because your loan is secured by your vehicle title. Lenders are much less likely to go chasing a secondary loan for anything because they know they have collateral that can be accessed through a repossession. They know what is coming and they have a record of what you pay off your other bills, so they know that you are making payments regularly and are defaulting on online title loans. of course. That’s why you should strongly consider a title loan buyout and look at is a fresh start. The hardest part is finding a new lender ready to take on a fresh loan obligation, but after that, you can expect a much better loan process from start to finish.

 

A title loan buyout program that get's a lower APR and quicker payoff.