Do you own an old car and you would like to get a loan on it? While it is possible to get a loan on a classic car, the amount of money you qualify for will vary.The major consideration determining the amount of money you qualify for is the mileage reading on your old car.
In fact, there are a number of lenders who frown upon lend to borrowers whose cars have high mileage, especially if it is more than 10 years old. If you have encountered such lenders, it is easy to be skeptical when applying for an auto loan. Read on to learn exactly how Title Loans for older cars work.
Can You Really Get Title Loans on Older Cars?
Life has many uncertainties and critical challenges may necessitate a quick financial fix. If you cannot access a personal loan from the bank and you have an old car, then the logical thing to do is get an auto loan. That’s is especially if you do not have credit that’s good enough to qualify for bank financing.
Now that a car title loan is your only option, how do you go about securing it? There are a number of lenders who will give you the financing you need on the strength of your old or classic car title. But first, the car title should be legally registered in your name. The lenders may require you to meet some additional conditions. So why should you not get an auto loan on your older car?
What’s The Age Limit for a Car to Qualify for a Loan?
First things first, how exactly does an auto loan work? The major requirement is surrendering the title as proof of your ownership of the car and you will be given a percentage of the value of the car as a cash advance. Of course, the car type, make, and model will play a major part in determining how much money you qualify for.
Although not the most important consideration, the age of your car also determines whether you qualify for a loan or not. With a mileage of 200,000 miles and less, you will get a cash advance on your car. But you can still qualify for an auto title loan even with an older car, so long as the lender is willing to give you the cash.
How Much Cash Will An Older Car Qualify You For?
Due to depression over time, an older car will qualify you for less amount of cash.However, that will depend on just how much value your car still has. If anything, the age of the car may have very little to do with its value. Take classic cars which still retain high value after many years of use. So long as your car has a sound engine in a clean body, it will still be worth much more than certain newer cars.
Eventually, your ability to repay the loan will determine how much cash advance you qualify for. Most lenders are, therefore, likely to give you up to 80 percent of the value of the car if they know you can repay the money.
So don’t be afraid to approach your lender for an auto title loan. You will definitely get the cash you need to solve your issues.