Does My Car Need to Be a Specific Make or Model to Qualify for a Title Loan?
Car title loans are short-term installment loans that can allow you to borrow off the value of your car. By using your car’s title as collateral for the loan, you can access a percentage of your car’s value and turn it into cash you can use!
But, to qualify for a car title loan, your car needs to first qualify as collateral. If a title loan is new to you, you may think that you need a newer car to qualify. So, how old can a car be to get a title loan?
The answer is that many different types of cars from different years could potentially qualify for a car title loan. It does not have to be from one specific year, and it does not have to be new! In fact, most borrowers applying for title loans do not have brand-new cars. Keep reading to learn more about the types of cars that can commonly qualify as collateral for a title loan.
So, How Old Can a Car Be to Get a Title Loan?
There is no all-encompassing list of cars that can qualify for a title loan. That is because older and newer cars and everything in between could potentially qualify as collateral for a title loan! Even if you have a classic car or an older car, you may be able to use it as collateral. That is because of how title loans work and operate. With a car title loan, you are borrowing a percentage of your car’s value and using the title as collateral for the loan. To use a car as collateral, it must have enough equity to borrow from.
Equity is just the difference between the current value of the car and what you owe on it, if anything. Many different makes, models, and years of vehicles can have equity- it is not just brand-new cars that do, although that is a common misconception. If you take care of your vehicle and keep it in good condition, it may hold equity even if it is older.
Some factors that can affect your car’s value are:
- The Style
- The Year it was Manufactured
- The Make and Model
- Any Surface or Cosmetic Damage
- The Features of the Vehicle (Sunroof, Heated Seats, etc.)
- Any Modifications to the Car
- The Current Mileage on the Car
All of these factors will potentially affect your car’s value. Therefore, they will affect your car’s equity, which in turn affects your potential eligibility! If you aren’t sure what your car’s current value is, don’t sweat it. You can always use websites like Edmunds or Kelley Blue Book to learn more about how your car’s condition is considered and how much value it has. You don’t need to know how old a car can be to get a title loan! Even if your car is older, you may still be able to use it as collateral for a car title loan. Just ask a title loan agent if your car meets the criteria during the online approval process.
Now That You Know How Old a Car Can Be to Get a Title Loan, Here’s What You Need to Apply
Even if you have an older car, do not let that stop you from applying for the financial help you need! While the approval processes for most title loans can be streamlined and straightforward, you will need to meet the initial requirements to apply. Additionally, you’ll need to provide some paperwork. That is the case for any loan that you apply for!
While the requirements for a car title loan can change from state to state, you will need to meet these initial requirements for most car title loan options:
- Be the Legal Age to Apply
- Demonstrate Proof that You Can Repay the Loan
- Have a Qualifying Car with a Title in Your Name
The initial requirements can be that simple! Additionally, while you do not need to have a brand new car to apply for a title loan, you will need to have these documents handy during your loan application:
- Proof of Income or Alternative Income
- Proof of Residence in Your State
- Car Title in Your Name
- Three References
- Recent Photos of the Car – You can get a title loan without showing the car in person.
- A Valid, Government or State-Issued Photo I.D.
And with those documents, you can easily apply for the financial assistance you’re looking for through a car title loan! If you have questions, just contact a title loan agent. Find out if your car and income can qualify for an online title loan today!