Car title loan, also known as auto title loan or pink slip loan, is a personal loan that is secured by the equity of your car. You give your car title (pink slip) in exchange of your loan and the lender is added as a lienholder to your title while you get to keep and drive your car. Once your auto title loan is fully paid, your vehicle title is returned to you.
Getting car title loans might be a bad idea for some but it becomes a good idea when it is used for the right reasons. You should get a car title loan when you NEED the money and not because you want the money!
- Car title loans help individuals and family meet their emergency and personal needs when they are turned down by banks, friends or even their family and relatives.
- Auto title loan is a good alternative or solution to meet your financial needs as long as your title lender analyzes your capability of paying your loan back in a monthly payment that is affordable to you.
- Interest rate can be costly but the car title lender analyzes the risk involved and needs to allot for possible losses and expenses in case the customer defaults on the title loan.
- Borrowers can still use their cars that are essential to their daily lives.
- Title lender only charge you for what you borrow unlike banks that charge you for your own money when you cannot meet their minimum deposit requirement. Some banks will charge you $12 monthly maintenance fee if you do not maintain a daily balance of $1,500. No wonder there are still a lot people who cannot afford a bank account! Why get charged for your own money? Your “supposed to be” savings diminish for not maintaining a daily balance that is too high.
- Car title loan is a simple interest loan. You only get charged interest on the principal balance of your auto title loan. You can pay less interest by paying more than your monthly payment or even by paying earlier than your due date.
- Auto title loans have no prepayment penalties so you can pay your vehicle title loans early without incurring any additional cost.
- Repossession is a final measure. There are a lot of expenses incurred when a car gets repossessed and the outcome is not desirable for both borrower and lender.
- Getting auto title loans is normally fast and easy. You can apply for title loans online or on the phone, and get approved instantly. Once you submit all the required documents, you can get your money right away.
- Car title loans have no annual fees.
- Auto title loans are way cheaper than a payday loan.
- Car title loan is a better alternative than payday loan and you even have a longer term to pay off your loan. The term is normally for 24 to 44 months so that the monthly payment is within your means.
Yes, car title loan has a higher interest rate than a conventional loan but what if that conventional loan is not available to you? You should only get an auto title loan when you need it and make sure to make your monthly payment on time or even fully pay your title loan early. Use the money for your personal and emergency needs.
Title loans have definitely helped a lot of individuals and families get out of their emergency and personal situations.
At Sabre Lending LLC, we want you to know and analyze your situation, and ensure that you can make your monthly payments on your car title loans. We can also help you in getting a better rate on your existing title loans by refinancing with us. We value our customers and we reward them when they pay on time. We encourage our customers to pay off their title loan as soon as they can. We are the solution to their personal or emergency needs.