One of the first things most people ask before they decide to apply for a Phoenix title loan is how much money they will be able to borrow. In the case of auto title loans, this is determined based on the value the lender assigns to the vehicle after they assess it and consider several different factors. This post will go over how you can figure out an approximation of what you will be able to borrow after putting your vehicle’s title up as collateral.
When you call your lender they will often be able to give you a quote over the phone to let you know if your vehicle qualifies and how much you can actually borrow based on the appraisal of your vehicle. The way to come up with this total is easy. The lenders try to make the process of borrowing money from them as easy as possible because they know you are in a hurry and need the money.
Once you call them, they will ask you questions about your vehicle. You will need to provide the year, make, model, style, and mileage of your vehicle. A good way to make sure you have everything you need in addition to this information is by visiting our what to bring page and making sure you have all of the listed documentation in order.
They will then look up the value of your car. Most lenders will go by the trade in value because this is what the dealerships will go by if they have a customer coming in to get rid of a vehicle. The loan officer will loan you anywhere from 30% to 50% of this fair trade value.
If the vehicle is newer, then the fair value percentage would be around 50% of the trade in value. The more money you request the more valuable your automobile will need to be. If you don’t have enough trade in value on your car for the money you are asking, your loan request will be denied.
In some cases, the Phoenix lender will want to inspect the car before they will loan you the money. You want to take good care of your vehicle because you never know when you will need to borrow money against it.