Car Title Loans In Lauderhill, Florida: All You Need To Know
No one means to run out of cash, but sometimes life just throws a wrench into your careful budgeting plans.
Whether it’s utility bills or medical bills, certain emergencies come up where we just need that money now.
If you find yourself grasping at straws, maybe it’s time to consider car title loans. Let’s begin!
Understanding How Title Loans Work
Simply put, a car title loan is a short-term, secured loan that uses your car as collateral.
Car title loans are also called “pink slip loans” from the pink paper that California vehicle titles were once printed on.
However, car title loans have certain nuances that make it different from secured loans taken out from a bank.
Here are the top 3 characteristics that make them different.
1. Your Ability to Apply Isn’t Based On Your Credit Score
Unlike secured loans where lenders base your ability to borrow on a good credit score, car title loan lenders in Lauderhill will base it off of your car’s “equity value”.
Equity value is the value of your car minus any amount you owe on, say, a vehicle loan. You have full equity value if you own the vehicle outright.
That’s why it’s important that you have full ownership of your car so you can use the entire amount as leverage in applying for an auto title loan.
2. The Loan Amount Will Depend On Your Vehicle
Following that line of thought, lenders in Lauderhill will base the amount people borrow on a percentage of their car’s market value.
Depending on the lender, this could be anywhere from 25%-50%.
Lenders will appraise your car based on its model, make, and current condition in order to come up with a loan estimate.
Remember that things like depreciation or previous damage will affect the loan amount so you have more luck getting more money for a brand new car!
3. The Lender Doesn’t Hold Onto Your Car
Unlike car pawn loans, auto title loans allow you to continue driving your car even if the lender is holding onto the title.
Lenders will only repossess your car if you can’t keep up with payments and pay off your debt.
Applying for A Car Title Loan in Lauderhill, Florida: 5 Easy Steps
Now that you know how title loans in Lauderhill work, let’s dive into the actual loan process for your vehicle title loan application.
- Fill out an application form online or in-person
- Bring your car and lien-free vehicle title to one of your lender’s branches in Lauderhill
- Submit any other additional requirements (check the list below!)
- The lender will do a car appraisal and determine the amount you can borrow
- Sign the loan agreement and receive your money in cash or in your bank account
Main Requirements for Loan Application
While requirements may vary from state to state, lenders in Lauderhill will require people to provide the following as part of the application process:
- Be at least 18 years old and the owner of your car
- Present a lien-free vehicle title
- Submit at least 1 valid I.D.
Top tip: Lenders need to get the vehicle identification number (VIN) of a car when they’re processing car title loans.
A VIN number acts like your car’s fingerprint and will tell a lender if there is any lien on the vehicle.
The VIN number is found on your title, so in case you lost this, read on to find out how you can request for a replacement!
Other Requirements You Might Need
Keep in mind that even if lenders are open to customers with bad credit, the company will still want to dig around your credit history to make sure you don’t have a history of bankruptcy.
Here are some things vehicle title loan lenders in Lauderhill might ask customers to share when they perform a credit check:
- Proof of monthly income
- Utility bill or other proof of residency
- Updated vehicle insurance and registration
- Name, phone numbers, and addresses of 2-3 references
Helpful Things to Know When Applying
When applying for car title loans, it’s one thing to know the basic requirements to get you started on the loan application process.
However, there are certain game-changing tips that will make it even easier on your journey in securing a vehicle cash loan in Lauderhill.
Getting a Copy Of Your Title
In case you find out that your title has been lost, damaged, or stolen, fear not: You can get a copy at the local DMV in Lauderhill.
Applying for a Duplicate Title
You can apply for a duplicate copy either by mail or in-person by visiting your nearest local county tax collector’s office and bringing the following:
- A completed Application for Duplicate or List in Transit/Reassignment for a Motor Vehicle, Mobile Home or Vessel Title Certificate (Form HSMV 82101)
- Proof of identity (driver’s license, state of Florida I.D. card, etc.)
- Any lienholder information
- An odometer disclosure
- Payment for your Florida title fee
- New vehicles: $77.25 (electric title)
- Vehicles previously registered in Florida: $75.25 (electronic title)
- Out-of-state vehicles: $77.25
- Adding a lien to a title: $74.25
- Printed paper title additional fee: $2.50
- Expedited fast title additional fee: $10
Replacing a Lost Title in Florida
To replace a lost title in Florida:
- Complete an Application for Duplicate/Lost in Transit/Reassignment for a Motor Vehicle Title Certificate (Form HSMV 82101)
- Provide proof of your identity
- Provide the odometer disclosure and any lienholder info
- Pay the $75.25 title fee for previously Florida-registered vehicles)
After application, the DMV will send the duplicate copy to you in the mail within 10 days unless you paid for expedited title services.
Rolling Over Your Loan
If people can’t pay off their borrowing within the agreed term, the lender may allow them to “rollover” their existing loan into a new one.
Rolling over your loan essentially extends it to give you more time to pay it off. However, roll over title loans come with their own interest rates and fees that you’ll have to pay on top of your original one.
Roll over terms are a good question to ask lenders when you’re canvassing for title loans in Lauderhill. Each lender will have their own roll over-loan terms, fees, and maximum interest rate.
Refinancing Your Car Title Loan
When customers find themselves in a situation where they want to get out of a title loan with a high-interest rate, they can consider refinancing it.
Refinancing means taking out another borrowing either from a bank or another type of lender at a lower interest rate to pay off your first loan.
While this alternative doesn’t free up your debt, it will definitely help you save some money on paying interest for rollovers each month.
Top tip: If you’re having a hard time getting approved for a better loan due to issues with your financial score, try tapping a local credit union for possible alternatives.
What You Need to Keep in Mind When Applying for a Car Title Loan in Lauderhill, Florida
Applying for car title loans is a quick and easy process to get cash fast when you need it. However, lenders may not disclose everything during your initial discussions.
Before you settle down with the first title loan lender you see in Lauderhill, keep these important points in mind.
There Are Fees on Top of Interest Rates
Before you sign on the dotted line, make sure to read your loan agreement and ask about APR.
What is APR?
APR, or Annual Percentage Rate, is the yearly cost of borrowing money over your loan term. By law, lenders must clearly explain the breakdown of your loan’s APR as part of the loan process.
Some hidden fees may not be included in your APR, such as:
- Late Penalties – charged when you miss a loan payment
- Prepayment Penalties – charged if you pay off your entire loan before the due date
- Credit Report Fees – for doing background checks during the loan application process
- Origination Fees – service fee for processing title loans
While not all lenders will have these hidden fees, it’s really best to review your options with title lenders in Lauderhill before you decide on borrowing from a company.
Beware of Balloon Payments
A balloon payment scheme involves paying small portions of your loan’s principal balance over the entire term and then paying a lump sum amount at the end of the loan’s term.
A balloon payment tends to be double the cost of your other payments, and can even go up to 70%-80% of your total amount.
This could prove a heavy sum to pay especially if you’re tight on money, so opt for an equally amortized repayment scheme if you can.
You Can Be Denied a Loan Even if You Have a Car
Despite almost all ads for car title loans claiming that anyone with a car can be guaranteed fast money, you can actually be denied a loan by a title lender.
Common reasons for denied applications include:
- Bankruptcy or history of bankruptcy
- Bad credit record (ex. multiple findings of continuous missed payments)
Top tip: If you’re retired or disabled but receiving benefits from your state, you can use this as a source of income to present to your lender.
Car title loans are not only a quick solution to getting the extra money you need but are much more affordable than other types of financing like payday loans.
However, just like with all loans, it’s best to educate yourself on all the costs that you might need to pay for on top of just your loan and interest.
Read over this article again and don’t rush in picking just any lender offering you title loans. Careful discernment may save you a lot of money in the long run!