Car title loans are basically short term loans given to individuals with poor credit history in return for an auto title as collateral. A title loan can aid tide you over during emergencies and crises. As long as you hold a clear title for a car that is paid up or nearly paid up, you can get approved for car title loans completely online. But how do you get an accurate estimation for your vehicle so you can borrow maximum amount possible?
How To Determine Your Car’s Value For Title Loans Online
First and foremost, you need to know how the online loan lender will evaluate your car. A vehicle’s value is determined by comparing and evaluating several different factors, including:
- Model and Make – This is based mainly on the car’s safety and reliability. If they are more likely to sell, they maintain their value a lot better than others.
- Demand and Popularity – Cars that are more popular in the used vehicle market are a better sale for the lender should they have to repossess and sell it. Therefore, popular cars hold better value.
- Car’s History – Savaged vehicle and those that have been in accidents are less valuable due to the damage they have sustained, which makes them difficult to sell.
- Mileage and Age – The more your car was driven, the more its value will decrease.
- Condition – For apparent reasons cars that have been well maintained attain a higher resale value.
- Options – Manufacturers upgrades like interiors, new tires etc. all increase the value of the car.
- Locality – Sometimes the area where a car is sold can greatly affect its value, specially if it was manufactured for a particular terrain or climatic conditions. For instance, a 4×4 outfitted for snow is not as valuable in Mexico as it would be in Michigan.
Lenders consider the trade-in value of the vehicle when determining how much they are willing to lend to the borrowers. Should the loan become delinquent, the lenders will prefer selling the car as quickly as possible to recover their cash.
The Kelley Blue Book is one of the most popular online resources for determining the value of a used automobile. This online research tool enables consumers to input all of the vital details about their car to get a precise market value for the vehicle. If you have any added features like upgraded sound system, interior packages and tires, it can greatly affect the value of your car.