Auto title loan options are usually sub-prime loans. It is taken typically taken out by individuals with poor credit rating. Such borrowers use their automobile equity as collateral, allowing them to borrow money based on the value of their vehicle. In order to qualify for the auto title loan, you will have to submit proof that you hold the title of your vehicle. It is important that your automobile has a clear title and it is free or nearly free of any other loan. It is possible to borrow money in excess of 2,500 UK pounds, if the collateral vehicle has sufficient value. It is also possible to borrow more than 50% of the vehicle’s value if it is in a good condition.


This loan option is secured by the auto title or pink slip, and the vehicle can be repossessed if you default on the loan. The lender will hold the borrowers title as collateral. That way if the borrower is unable to repay the debt, the lender can recover their losses, by repossessing the vehicle and selling it. But most lenders will attempt to contact you and collect the payment before it goes as far as repossession because most often it can cost the lender a lot more to repossess and sell the vehicle than the actual cost of the original loan.

The amount you can borrow will depend on the value of your vehicle, which is based on its wholesale price. Before you approach a lender, you need to assess the value of your car. Useful tools such as the Kelley Blue Book are a popular resource to determine a used car’s value. This online research tool lets you search for your car’s make, model and year as well as add the appropriate options to calculate the vehicle’s value. There are similar other websites that will allow you to quickly and precisely assess the value of your car or any other vehicle.

Depending on the lenders the terms and conditions may vary, but there are some common fees for auto title loans. These usually include a one-time fee for collision insurance, repossession fees should you default on your payments and force the lenders to repossess your car, they may charge you a repossession fee, collection fees if you make a late payment, and late fee calculated as a percentage of the monthly payment.

It is important that you do sufficient research and make sure you find a reputed lender who offers flexible payment terms and competitive interest rates. Most lenders will allow you to apply for the loan through a secure online title loan application or by phone and let you know within a short time about your approval status. You could have the cash you need in hand within hours.


The benefit with taking auto title loans is that you get to keep and drive your car while repaying the debt. So taking one will not disrupt your lifestyle in any way, except that you have to provide your auto title as collateral and manage your budget in order to repay the debt on schedule. Also, repaying a debt on time will improve your credit rating by demonstrate your ability to manage your finances responsibly.