Auto Financing Title Loans

Auto title loans are loan packages taken on short term, preferably not more than 30 days.  Such loans are secured by the use of one’s car title.  This simple means that in the event the borrower does not get to pay back the loaned amount in the agreed time, the lender has the right to take the car and sell it in order to recover the auto financing money.  The auto title loans lenders will basically provide the loan only if there is nothing else owed by the buyer on the car.

It is important to note primarily that such auto financing agreements are usually focused towards elderly people, military personnel, low income individuals and people with bad credit.  The financial offering such kinds of auto financing loans make money by charging high interest rates and also repossessing cars from consumers who do not get to repay the loans within the agreed period.  For individuals having monetary problems, short tern car loans such as the auto title loans may seem as a very attractive option. Although they charge interest that is very high, the repayment period is significantly shortened on the side of the car buyer.

If one is unable to repay the amount, the amount will just be rolled over to the next month.  With this kind of setup, the interest rates keep on building up in the subsequent months.  This is usually referred to as flipping of the loans.  According to specific laws regarding auto financing, the loan cannot be rolled over for more than six times. In case the amount is rolled over more times than initially stipulated, this simply means that the interest to be paid will be relatively high.   With the exceptions of fraud, if Auto Title loans are not paid within the agreed period, all the lender does is to take the car and sell it off.

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