Auto title loans are an easy and convenient way to get a cash loan. There are a number of reasons why you might need to borrow out your car’s title, such as repaying debt or replacing it after you’ve had it stolen. In this article, find out what you need to know before getting a title loan!
What is an auto title loan?
Before cars could be bought, people leased cars. If a lease term became to long, the car owner would have to make payments towards their rent. Sometimes people would decide they wanted out of this relationship and redeem their vehicle by buying it outright after making their final payments on it. This changed in the early 1900s when the government created an option for someone who wants to buy a car with no money down. They are given title to a vehicle that has “freed” the person from making any more payments on it once its paid off. The newly updated federal law allowed consumers to purchase a previously used car “free and clear” of debt at auction or other private sale. These new laws decreed that all titles now included a transfer of ownership from one private citizen to another with no lender involved; later failing banks were replaced entirely with legally binding agreement signed by both parties: one is buying and one is selling. Auto titles offer borrowers tax benefits as well, because they can sell the title-just like real estate-on the secondary market after 7 years without paying taxes on any gains if the purchase price was $500,000 or less.
How do auto title loans work?
With an auto title loan, you give the dealership back your car as collateral for a new loan with reduced interest rates. The dealership is responsible for maintaining the car and making sure that everything runs smoothly for you. They decide what condition to hold the car in until you make your first payment or earlier if any issues arise that make the old loan come due. Then, once your payments are up-to-date and the loan is repaid, you get back your car. If nothing goes wrong with the car or it needs repairs due to careless driving, then they can sell it again without a problem.
Pros and Cons of Auto Title Loans
Auto title loans are a perfect option for those of you in need of some quick cash on the side. You will want to look into these loans throughly before taking the plunge, though. Here are some pros and cons you should know.
How to qualify for Title Loans
Minnesota Title Loans is a lender based in the Village of Nevis, WI. If a title loan is what you’re looking for, we’ve got you covered. For many, interest rates are required by law to be disclosed on the loans and title details are also required to be disclosed; something that’s not required with bank-based loans. Here at Minnesota Title Loans, this isn’t our policy; instead, we offer loans with no hidden fees and high cash-back rates.
Based on the research done of Wisconsin’s state laws and regulations, we have concluded that this would not be a legal business in Wisconsin. A car title loan creates a risk because it is calculated based on a car’s value. This can make the loan unaffordable if the car is lost, stolen, or subjected to an incident such as a break-in or accident.