A clear auto title is usually required to qualify for car title loans. This means that it will be difficult to get a title loan if you still have payments to make on the vehicle. However, there are title lenders that can provide you with car equity loans.
Car equity loan defined
This is related to how equity loans on a house works. You can ascertain your vehicle’s equity by determining the amount owed on the loan. Then, go ahead to subtract that value from the value of the vehicle in the fair market. You can then borrow against this vehicle equity which a reputable lending company will decide.
The equity serves as collateral which gives the lender authority to carry out vehicle repossession if you fault the terms and conditions of repayment. There are lenders that can provide you with car equity loans that come at a relatively lower interest.
Finding car equity loans
You will hardly ever get a car equity loan from a bank but the local Banks that you can find in your locality can provide you with this service. Another option is to find a specialized lender that can provide you with a car equity loan even if you do not have a clear title. Remember to read the terms and conditions and ensure that you have a full understanding of all that is stated before you go ahead to agree. Also keep in mind that defaulting on the agreement will lead to penalties and fees.
https://en.wikipedia.org/wiki/Clear_title has information for you concerning clear titles
