The car title loan is intended for those customers who want to finance the cost of purchasing a vehicle with money from the bank. It allows you to take advantage of attractive loan conditions, but at the same time you have to take into account that the vehicle you are buying will be secured for its repayment.
What is a car title loan?
Some banks offer special-purpose loans, Such loans include car title loans. Of course, the funds obtained from such a commitment can buy a car – new or used, but not only.
A car title loan is granted not only for the purchase of a car, but also for other vehicles. Depending on the bank’s offer policy, the vehicle may be:
- construction machinery,
- motor boats etc.
These can be any vehicle with a valid registration certificate – new or used.
We have it on Totalmoney: car title loan and leasing – what’s the difference?
There are several types of car title loans. There are car title loans:
- standard – repaid as part of monthly principal and interest installments for the loan period specified in the agreement
- single-term loans – one-term loans that require an own contribution, and the remaining part is credited by the bank and repaid at the time specified in the contract, on a one-off basis – such loans are interest-free,
- balloon – they consist in the repayment of low installments, which include, for example, 80 percent. the value of the vehicle, and the rest of the value of the car is repaid in one installment.
car title loan calculator
A comparison of car title loans available to the client at different banks allows for an assessment of which will be the most profitable. A car title loan selected through it should meet all our expectations, mainly in terms of the lowest possible costs.
When assessing the profitability of a car title loan, all costs associated with such a commitment should be taken into account, not just the amount of interest charged. There are also the costs of commissions, fees related to the establishment of collateral or premiums for compulsory insurance and assignment of rights under the policy to the bank.
Handling the car title loan calculator should not be difficult for anyone. Just enter the basic loan parameters, i.e. the amount and repayment period, for the calculator to show a simulation of car title loans in the form of a list of available offers. The cheapest car title loan is most often displayed as one of the first on the list. Along with specifying the bank name and credit costs, you should see:
- amount to be repaid,
- the amount of the expected installment.
For example, mBank car title loans offer loans for regular and new customers. Funds from such commitment must be allocated to the purchase of a specific vehicle specified in the loan application. The APRC of the loan is 7.47 percent. mBank does not require own payment, and the nominal interest rate of the loan is from 4.39% per year.
The customer can choose a loan with a loan period from 6 to 120 months in the amount of up to PLN 450,000 gross (ultimately the loan amount depends on the individual assessment of the customer’s creditworthiness). The loan can be used for the purchase of a car, motorcycle, quad, scooter or ship.