Usually Phoenix auto title loans can make a dent in your budget but are disastrous on the finances while providing quick cash on your vehicle. But if you don’t have a plan for repayment, it will make the lender repossess the vehicle. Thus, if you plan on taking an auto title loan, you need to budget properly and see if you are able to repay the amount that you intend borrowing.
The best aspect of taking a Phoenix auto title loan is that your credit score is not needed and the loan is approved on the basis of the car’s value not based on your income. The best part is that there is no waiting time and you can even get a loan within an hour’s time. And there isn’t any penalty if you intend paying it all off early.
The disadvantages of Phoenix auto title loan only arises if you default on the payments as high interest rates are applicable and if you are unable to pay off the principal and interest, the lender has the right to repossess the vehicle when you default. That is the major disadvantage because they give the borrower an extended 30 time period after which the vehicle will be sold in order to recover the money that was loaned out to you. The pink slip is the collateral and that makes it easy for them to initiate repossession, so consider this factor before you take the Phoenix auto title loan.
However, repossession is only in an extreme condition as the lender tries to work out with you to ensure small regular payments. However, it is best that you look at the terms and conditions that the lender has on Phoenix auto title loans and read it thoroughly before signing the contract. Most of the lenders allow paying the debt with smaller payments when you are unable to pay the complete amount all at once, so select a Phoenix title loan lender that has flexible payment plans.
Though the financial emergency that you face will tide over when you take a Phoenix auto title loan, it is equally important to ensure that you have a payment plan to return the principal and any interest that has been added. You need to know that all Phoenix auto title loans come with a high interest and irrespective of what the lender tells you, this is a fact, so be careful.
You will need to pay the first installment within a month and in case you are unable to pay the complete amount that is due, a high rate of interest will be applicable. It is best to crunch your expenses and pay at least the minimum to ensure that all of the loan and Phoenix interest does not upset your total budget.