Auto equity loans have been popular in Texas over the past decade. We’re seeing more people cash out equity from their vehicles as getting an unsecured loan becomes even more challenging. These loans tap into your car’s equity, and that collateral is used as security for a loan amount that starts at $2,000. Here at Texas Title Loans, we are proud to offer fast financing for most instant auto equity loans, and we can get you approved in less than 24 hours!
One of the most critical questions is whether your vehicle will qualify for an auto equity loan. Even though a lender will not be concerned with your recent credit history, they still need to know your car or SUV has value and that you can pay back the balance.
You will need a clear title for your car and current insurance coverage to qualify. You have a decent chance of qualifying with a car that’s less than 15 years old with no significant mechanical issues. Other requirements often include proof that you’re employed or make enough money each month to cover the monthly payments. Some equity lending companies will want to verify that the car is registered, and they may also ask for references from friends and family. The best part about these short term loans is that they can help decision-makers facing a financial emergency get approved within 24 hours, which means you can access cash when you need it most!
Even with a newer vehicle, there’s always the chance that your car is worth less than what the original lender owes. In this case, your vehicle may be worth less than what’s owed to the original lienholder, making it difficult to get any car equity loan. No matter your vehicle’s value, applying with Texas Title Loans only takes a few minutes and estimating your vehicle’s value and approximate equity amount. So please start your application with us now to see how much you can borrow with an auto equity loan.
Title loan companies assess a lending amount based on the vehicle’s equity. Because of that, getting approved for any title loan will be challenging if the car’s equity is underwater or barely more than the current resale value. Suppose you have a vehicle with negative or limited equity. In that scenario, we recommend you apply for a personal loan or see if any other lender offers are available.
Funding amounts with an equity loan using a car are typically far more than you would expect from a personal loan lender. Most cars valued at $5,000 or more will lead to a loan of at least $2,500. That means you can borrow upwards of $10,000 with average amounts of $3,000 for an auto equity loan.
Interest rates for these loans are high; some companies have APRs that start at 30%. Expect to pay hundreds of dollars a year in interest charges alone, and some customers with rates over 50% will struggle to repay their loan by paying just the minimum payment. Do what you can to pay extra monthly and see if your lender allows early loan payoffs.
If you’re ready to see what funding options are available, we recommend you start an online application with Texas Title Loans. Our lending partners feature loans with no credit check, and your approval is almost entirely based on the collateral in your car or truck! We are a leading source of auto equity financing, and we can find a lender near you that will finalize your loan. Call us at 844-243-3195 to see how much your car, motorcycle, or RV is worth, and we’ll get you on your way to a same day equity loan!