A car title loan or vehicle equity loan is often a requested tool by people that need extra money to make ends meet. For instance, they may have some unexpected expenses that were not budgeted for, or perhaps they were laid off. Whatever the reason, it is always nice to have extra money to make ends meet even if it is a little bit extra. However, before asking the question, can I get a title loan if the title is signed over to me, it is important to first understand how this works.
When you sign a sales contract, you agree to the sale of your vehicle and title. The sales contract includes all the legal jargon that can be confusing to those of us who have no experience in the purchase of automobiles. One of the most important parts of the contract that is often overlooked is the part about transferring the vehicle and title to one party. Many people fail to realize that when they purchase a vehicle at a car dealership, they do not actually own the car. Instead, they are technically still parties to the transaction. This means that the dealership can sell the vehicle and then transfer the title and registration fees to one party, called the seller, and then allow the buyer to purchase the car from that seller.
What if the vehicle is not purchased at a dealership? Can I still get a title loan even though the buyer is not the actual owner? This is an often overlooked part of the contract. In fact, it would be virtually impossible to complete the transaction without the signature of the buyer. This is why many people feel that the title and registration fees must be paid even if the buyer does not own the vehicle.
Technically, this can happen. There are lenders that will issue a DMV loan without ever owning the motor vehicles themselves. These lenders are referred to as ” DMV real estate companies” and they do business by putting all transactions through the Department of Motor Vehicles. They are strictly authorized by DMV to process DMV-issued loans and are therefore able to provide short term cash loans like what you might get from title companies without having to own a motor vehicle yourself. However, the interest rates and fees that are charged on these types of loans are often quite high, so it is best to verify that you are indeed dealing with such a lender before agreeing to pay them for a loan.
If you have your own car or truck, you can apply for a DMV-approved title loan through one of these lenders and then pay off the loan in full at any time that is convenient for you. Some people might even pay off the car title loans with the monthly payment they receive from the title company while they are working toward paying down the debt. Some people will use the funds from the title loans to pay off other debts or to save money for something special. They are a good option for people who need immediate cash because the payoff period is not very long and does not have very high interest. You can also transfer the title over to yourself or another friend if you want to free up some room in your budget.
Another good option for someone who needs quick cash is to get a title loan from TFC Title Loans. They are not approved by DMV and are only meant to be used for emergencies, but they are very convenient for people who may not be able to qualify for a regular short term loan. By using a title loan you can have cash deposited in your bank account within a few hours and you can usually take advantage of the lower interest rates than you would get from most banks. You can also choose to have the title transferred over if you wish.