AUTO EQUITY
LOANS IN TEXAS

Auto equity loans have been popular in Texas over the past decade, and there's a good chance you can qualify with a newer, paid-off vehicle as collateral. We're seeing more people cash out equity in their cars as unsecured loans become increasingly hard to get. Most unsecured loans require excellent credit, while an equity loan on your car or truck typically doesn't need a comprehensive credit check.

These loans tap into your car's equity, and that collateral is used as security for a loan amount that often starts at $1,000 in Texas. You can borrow far more with a newer vehicle, and some customers may be approved for up to $20,000, depending on the car's value. However, if you live in a city with a local ordinance, your loan amount may be limited to the lesser of 3% of your gross annual income or 70% of the vehicle's retail value. Here at Texas Title Loans, we are proud to offer pre-approval for auto equity loans, and we can match you with a local lender in Texas who can fund your loan in as little as one business day.

Does My Vehicle Qualify For An Auto Equity Loan

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 must show proof of a lien-free title for your car to qualify. The vehicle must be titled in your name, and you must provide proof of current registration from the Texas MVD. You have a decent chance of qualifying with a car that's less than 10 years old with no significant mechanical issues. Other requirements often include proof of government-issued ID and proof that you're employed or that you earn enough each month to cover the monthly payments. Some equity lending companies will require verification that the car is insured with comprehensive coverage.

One requirement of vehicle equity loans that's become more common recently is bringing your vehicle in for inspection. By having your vehicle inspected in person, you can verify that its equity value matches its current resale value. Your lender will also confirm the current mileage and look for other cosmetic issues. One benefit of getting a vehicle inspection is that you can significantly speed up the underwriting and funding process. Auto equity loans can be underwritten and funded within one business day, but you can often pick up your money the same hour you complete an inspection.

What If My Vehicle Has Negative Equity

Even with a newer vehicle, there's still a chance your car is worth less than the amount owed to the original lienholder, making it difficult to obtain a car equity loan. No matter your vehicle's value, applying with Texas Title Loans takes only a few minutes, and you can estimate its value and equity. So please start your application with us now to see how much you can borrow with an auto equity loan.

Title loan companies determine the loan amount based on the vehicle's equity. Because of that, getting approved for a title loan will be challenging if the car's equity is underwater or only slightly above its current resale value. Suppose you have a vehicle with negative or limited equity. In that case, we'd recommend applying for a personal loan or speaking with your bank about other secured lending options.

Loan Amounts & Rates With A Car Equity Loan

Funding amounts with an equity loan using a car are typically far more than you would expect from a personal loan lender. Some cars valued at $4,000 or more will lead to a loan amount of $1,000 or more. That means you can cash out a meaningful percentage of your vehicle's value.

Interest rates on vehicle equity loans are high, and in some areas, Effective APRs, including Credit Access Business (CAB) fees, can often exceed 100%. In most major cities in Texas, including Austin and Dallas, local lending restrictions protect you from "interest-only" payment cycles by requiring that every payment you make go towards reducing your principal balance by 25%. For customers in these parts of Texas, this allows them to pay off their auto equity loan in 4 or fewer installments.

Are you struggling to make payments on an existing auto equity loan? Or do you want to repay your current title loan sooner than the current repayment terms allow? Texas Title Loans provides same-day access to refinancing options where you can reduce your monthly payment and get a more manageable interest rate. Some customers come to us with APRs of 200% or more on their existing title loans. By refinancing, we can save them thousands and, most importantly, get them out of a situation where their vehicle can be repossessed. Call us at 844-243-3195 to get a refinancing quote today. Even if we can't help reduce your rate, we may be able to arrange a buyout in which your current lender is paid off and you start fresh with new terms.

When considering a refinance or buyout, keep in mind that local laws in most Texas cities limit how many times a loan can be renewed or "rolled over." In most areas of Texas, you're limited to 3 renewals before the loan must be paid in full.

Should You Skip The In-Person Inspection?

Are you looking for an equity loan you can get online or over the phone? These loans are possible in some scenarios, and lenders will need to inspect your vehicle to confirm its resale value. They're already incurring a fair amount of risk without running a significant credit check, and you'll only see your interest rates go higher if you insist on an online title loan with no store visit. Yes, some lenders offer these loans without inspection, but the interest rates are very high, and your loan amount will be lower than if you had the vehicle inspected in person.

Furthermore, because local lending ordinances in many parts of Texas require lenders to verify your ability to repay and confirm the vehicle's resale value, an in-person inspection is typically required to ensure the loan amount remains within city-mandated limits.

Assuming you have the time and access to your vehicle, take the extra step and bring it in for an inspection after you get pre-approved with Texas Title Loans. You'll get a higher loan amount and lower interest rates when the lender has inspected the vehicle. Yes, it takes a bit longer to schedule an in-store visit, but you'll have the added trust of your lender as they won't have to rely solely on photos or videos of your car or truck.

Ready To Get Started? Here's How To Apply

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 in Texas that will underwrite and fund your loan.

We only need your car's make, model, and year to get you an initial quote, and pre-approval only takes a few minutes. After that, we can estimate the loan amount and repayment terms. Call us at 844-243-3195 to find out how much your car, motorcycle, or semi-truck is worth and get pre-approved today.