Car Title Loans in Sarasota, FL: A Before, During, and After Guide
Are you looking for loan options around Sarasota, Florida?
If you are someone who has medical bills and financial emergencies and wants to have cash quickly, you are in the right place.
This article will teach you everything you need to know about car title loans in Sarasota, FL.
This article will provide you with guidance and tips from the start until you finish paying off the loan.
Continue reading to find out!
Before: How to Prepare for Your Car Title Loan Application
In this section, we will list down some helpful tips and tricks which will aid you in ensuring a successful application.
There are so many car title loans in Sarasota, but you would only need ONE to fit all your needs.
#1 Understand the Nature of Title Loans
A car title loan is a short-term loan in which the borrower exchanges collateral for some quick cash.
In the case of car title loans, the collateral is your vehicle’s title. A professional appraiser will determine the car’s equity value to get the loan amount.
The car’s title will be returned once the title loan lender pays the whole loan amount.
Car title loans are auto title loans, vehicle title loans, and pink slip loans.
Car title loans are one of the best options for those looking for a quick way to earn money for their immediate cash needs.
#2 Research About Title Loans in Sarasota
Different loan companies operate Sarasota title loans. We want you to get the BEST loan offer out there, so we advise you to do research.
Remember, a title loan is still a type of loan, so you would need the right loan terms and conditions for it to benefit you.
We recommend that you list down all the title loan companies in Sarasota. Compare and contrast their deals and offers.
By doing this, you are saving some valuable time before you apply online. This is the best way to find the right title loan in Sarasota for you.
#3 Learn About Florida Title Loan Act
The Florida Title Loan Act is the state’s law regulating title loans in Sarasota. You can read about the Act here.
Under the 2021 Florida Statutes, title loans are regulated under Chapter 537, with prohibited acts under 537.013.
Laws in Florida require that title loans in Sarasota are operating under a license, so look out for that.
Lenders are also prohibited from imposing excessive charges, except for additional finance charges in case of violation of loan conditions.
#4 Check Your Monthly Budget
We understand that you need money for household purposes, but we also encourage consumers to avoid penalties.
In Sarasota, FL, title loan lenders are also protected by the law if the borrower defaults. Of course, we don’t want that to happen to you.
To make sure that you can make the monthly payments for your car title, tracking your expenses every month is important.
Before applying for any loan, make sure that you prioritize loan payments before other wants or items you can give up in the meantime.
This will ensure that you will not be penalized for late-payments and avoid additional finance charges.
During: A Simple Guide to a 5-Step Loan Process
The steps below will contain a detailed guide on applying for a title loan in Sarasota, from start to finish.
Ready to know how to be successfully granted short-term financing? Let’s go!
Step 1: Apply Online
The first step of our loan process is to apply online. Most title loans use an online application to ensure a speedy process.
Instead of long queues that you would normally find in a bank or other credit unions, you will only need a reliable Internet connection for your auto title loans.
For your application to be seamless, we recommend preparing your documents beforehand.
This will make your application easier, as all your personal information is within reach.
Once you are finished preparing, just look for the LOAN FORM of your chosen title loan in Sarasota. Click the link and start filling out the form.
You can finish applying online in about five minutes. How cool is that, right?
Step 2: Submit the Necessary Documents
The title loan agents will have already reviewed your application in this step. They will ask you to verify your information with some documents.
Lenders of title loans in Sarasota will require the following:
- Car Documents
- Applicant Documents
- Applicant’s Financial Information
- References (Optional)
Let’s discuss this one by one.
Car Documents
These are the most important documents that you will need to present in a car title loan.
This includes the following:
- Car title. This is the MAIN document of a title loan. Your car title must be lien-free, so there must be no outstanding judgments or loans tied to your title.
- Pictures of your car. The lender will check the condition of your car to compute the car’s equity value*. Provide pictures of ALL four sides of the car, including the exterior and interior.
- Car insurance papers. Car title loans in Sarasota require your car to be insured. Your car will be in your possession while you are paying the loan, and the insurance will take care of any damages to the current condition of the car.
- Vehicle Identification Number (VIN). This can be found on the lower-left corner of the dashboard or in front of the steering wheel. It can also be in front of the engine block.
The car’s equity value will ultimately determine the loan amount of your auto title loan. These are the factors that will affect the vehicle’s valuation (VV):
- Make
- Model
- Year the car was manufactured
- Total mileage
- Accessories
To compute the value of your vehicle, try using the following formula:
Car’s Equity Value = VV – percentage rate x dues and outstanding fees for the vehicle
Some accessories such as having a sunroof, leather seats, and other improvements will INCREASE the value of your car.
Applicant Documents
Because it is another type of personal loan, car title loans will also need the details of the owner of the car.
Some documents that your lender will use to verify your application are:
- Birth certificate
- Government-issued ID (passport, state-issued driver’s license, social security ID, etc.)
- Proof of residence (recently paid utility bills or an ID showing you’re from Sarasota, Florida)
Proof of residence is required by lenders as only residents are eligible for title loans in Sarasota, FL.
Financial Information
Don’t worry! Sarasota title loans will not look into your financial history, which they usually do in a credit check.
Instead of just relying on your credit score, online title loans in Sarasota will require you to show them your proof of income.
This can be shown in various ways, such as:
- Payslips from your employer
- Financial statements, if you are managing a business
- Bank statements, if you are receiving some form of financial support from the government
The idea here is to prove your ability to repay the loan proceeds. If you have a lot of sources of income, you can also show documents proving that.
The important thing here is that the lender will see that you can pay the principal.
Remember, this is not about how much money you can pay every month but how CONSISTENT you will be in paying monthly.
References
If lenders need to evaluate your application more, they will be times wherein they will employ the aid of your references.
They will be asked about your buying and paying habits and how well you could follow the payment plan of your previous loans.
This is an optional process of the loan, as some lenders will not need to ask questions to your references.
Step 3: Read the Loan Terms and Conditions
This is one of the most commonly skipped steps for all types of loans.
Borrowers will often scan the loan conditions to quickly get the cash they need, only to be in conflict later when they unintentionally violate a loan term.
Violations have penalties when it comes to loans, and we want you to avoid that.
Part of the loan application is knowing what you’re getting into, so look for the following while reading the conditions:
- Prepayment penalties
- Interest rates
- If they are asking for your bank account
- Payment terms
How much cash you are getting is important, but so is the process of paying it back.
Some prefer to pay the lender directly with cash, while others prefer bank transfers and the like.
Step 4: Discuss and Sign the Loan Agreement
One of the reasons we love car title loans is their allowance for the borrower’s needs.
After you read the auto title loan conditions, you may ask your lender if you have some questions about the payment process or anything related to the loan.
In some cases, you may even be invited to an open discussion where you can negotiate the loan terms and conditions.
We recommend that you take advantage of this opportunity, so you can also pay the loan by your capability.
It is better to make your lender aware of your financial situation and current capacity than struggle to make the loan payments after.
Who knows? You might be able to agree on something which will make payment easier for you.
Step 5: Get Your Cash!
Finally! We’ve reached the end of our loan process.
Some even get their money on the same business day as their loan application!
Sometimes, the lender will give your money as cold cash, but they may also opt to transfer your money to your bank account instead.
You may discuss the best way to receive your money with your lender.
After: Guide to Ensuring a Seamless Repayment
Being granted a loan isn’t the end goal of car title loans. Instead, it can return the FULL amount of the personal loan.
Our goal is a car free of any outstanding loans or judgments, so we have established a list of advice that can help you pay back the money you owe.
Keep in Touch With Your Lender
Your relationship with your lender is also important.
Although low monthly payments can’t always be promised, lenders will always use the average interest rate as a basis for all the loans in Sarasota, FL.
The goal is to constantly update your lender about your car title loan status.
If you want to pay early, you can always negotiate the terms with your lender. Make sure that you create a new loan agreement with the revised terms.
You can always ask about the remaining amount that you have to return, so you can also plan financially.
Start a New Side Hustle
Our goal here is to increase your income streams so that you can gain possession of your vehicle title as soon as possible.
While making payments, it is best to look for ways to earn more money.
Remember, the long-term solution to avoiding high-interest rates is ensuring that you adhere to the payment plan and give payment on the same day it is due.
Believe us, and your car will be paid off in no time!
Frequently Asked Questions [FAQs]
This section has compiled all the common questions about car title loans in Sarasota, FL.
We hope these answers can clarify your questions.
Can I Still Qualify Even With a Bad Credit Score?
Of course! One thing about auto title loans that sets them apart is their flexibility.
Although some lenders may still perform a check on your credit history, bad credit will not deem you ineligible for a car title loan.
A credit score is the most used indicator of someone’s paying habits and how well they were able to repay their previous loans.
People with no credit score or poor credit will find that Sarasota title loans are less strict with the credit score.
As we have mentioned earlier, what’s important for Sarasota title loans lenders is the ability of the borrower to return the money they owe.
Are Title Loans Better Than Payday Loans?
That will depend on how much money one person needs and if the borrowers need to receive the money fast.
A payday loan would often have a maximum amount of $500 or even less, which must be paid on the next payday through a postdated check. [R]
These loans are usually given on the same business day, which is beneficial when you need the money right away.
But, one downside of these kinds of loans is the short amount of time wherein you have to return the money you borrowed.
On the other hand, Sarasota title loans usually span over a year, depending on the agreement between the borrower and the lender.
The amount of the loan is also generally much higher in title loans, which is perfect for those who require more money.
How Long Will It Take To Receive My Loan?
The answer to this will vary greatly depending on your lender.
After applying online, title loans will process the form and proceed to the next step. However, there are also instances wherein the verification also takes time.
In this case, it can span from waiting for just a few hours to a whole day before receiving approval for your application.
How Much Money Will I Get From My Loan?
The amount of money you will get from your loan will depend on the year, make, model, mileage, and overall condition of your vehicle.
As a general rule, a high mileage means that the car will have less equity value, therefore, lower money you can get for your loan.
Also, don’t forget that some lenders will not accept a vehicle manufactured before 2000. To be sure, you can inquire to your title lender.
Don’t worry, though, as certain aspects can also increase how much money you receive. If your car has accessories such as a sunroof and leather seats, that’s a huge plus.
When Will I Get My Title Back?
In most online title loans, your vehicle title will be returned on the same day you fulfill your loan obligation.
Don’t worry! Title loans are efficient when it comes to processing, so the return of your title will be processed as soon as possible.
Will My Vehicle Be Confiscated?
Your vehicle will NOT be confiscated if you are granted online title loans. Your title will be surrendered to the lenders, but not the vehicle.
However, there is also a possibility that the lenders will ask to repossess your vehicle. This will only happen if you default on your loan.
Your title loan lender is also protected by Florida Title Loan Act, which gives them the authority to repossess your car given certain conditions are met.
To avoid this conflict, make sure to repay your dues on time and communicate with your lender.
Looking For Same Day Solution? Apply for Title Loans Now!
Title loans in Sarasota are ready for your application!
What are you waiting for? The answer to your problem might just be around the corner.
Contact the title loan company of your liking and start now!