Risks and Benefits of Auto Title Loans

Car title loans have become very popular in recent years. But let’s make a small compilation of what a car title loan is.

In case you still don’t know, these types of loans are normally used by people in need of quick money.

The car title is used as insurance on the loan and serves as collateral for the lender. It is not a long-term financial solution, but they have the benefit of not having penalties in repayment and that can be paid before the stipulated date.

When they approve a loan like that, they make sure that your income can support the loan itself.

They determine how big is the budget you have, so that you get the money you want and pay it in the future.

Now that you know briefly how auto title loans work, let’s take a look at their benefits and risks.

Benefits

For people with poor credit

Auto title loans are a good option for people with poor credit history or do not even have credit, who are in need of acquiring fast money.

If your credit is bad, you have applied to traditional banking for a loan, you have been denied the application and have shown no interest in helping you.

What is your next option? Then use the equity you have in your car to get a car title loan.

Using this, you will have the money you are requesting and you will be able to continue using your car, only for the company to add its name to the title of the car until you finish paying your debt.

So if you have bad credit, don’t worry! Your car represents the credit for the lender and its value will be given by the conditions of your car.

So it is the best option you can find if your credit is bad or if you have no credit history.

Instant money

If you are in a situation where you need fast money, then the interest rate should not be important but get cash.

Having this money in due can help you with your financial problems. So a car title loan does not seem as risky as it sounds if you know your ability to pay it monthly after obtaining a benefit.

As long as you are able to repay the loan, there is no risk at all. Just by knowing the level of your income, you will be guided to the path of instant money.

Simple application

As long as there is equity in your car and you own the title, the title pawn company will be able to help you get the loan you need and you can usually get it until the same day you made the application.

Since their approvals are not based on your credit history, only the value of your vehicle and your long-term payment capacity are taken into account.

Better than a payday

Auto title loans are much more efficient than payday loans. With the first you can get a couple thousand dollars, while with the second you will get a couple hundred. And you have to consider that auto title loans are much more accessible than payday loans.

We have already seen the most immediate benefits of auto title loans. Now we will see the other side of the coin, just so you have the full picture.

Risks

Interest rate

The interest rate on a car title loan is usually much higher than on traditional loans.

If it is a great way to get a couple of thousands of dollars you need immediately, but you need to be aware of interest rates that will entail.

It is important that you know how you will make your payments in case at any time you cannot handle it. If this happens, interest rates would rise significantly.

And if you still cannot repay the debt, your car will have risks of being taken by the company and you will have to pay the release of your car, in addition to the interest and payments due in order to recover it.

Repossession

Of course, it is the biggest consequence of not being able to pay the car registration loan. Let the company repossess your car. If you make your payments on time and have contacted the office you have nothing to worry about.

But if you are unable to make your monthly payments and do not communicate with the company, it is very likely that they will repossess your car.

And the worst thing that can happen to you if you don’t pay the release, is that your car can be sold or auctioned to get the loan money.

Companies that charge extra interest

You have to make sure that the company you chose is well established in the title loan industry.

Because there are many companies that do not usually have much experience and will try to charge you with extra charges to make it more difficult to pay your loan.

To avoid this, work with a reputable company with positive reviews

Finding Great Auto Loans

Buying a car on credit is an important decision for your credit score, since it is one of the ones that most affect you, for better or worse, for the amount you will request.

That is why in this article we will tell you how to identify that the product you will choose is good, which will also benefit your pocket.

1. No commission for opening

Many auto loans offer this benefit, which is very good, since this commission usually takes away the opportunity to give you a good down payment.

Always check that the lender offers you this or that this charge does not exceed 5 percent of the total value of the vehicle.

2. Free insurance

Having 12 months of free insurance will help you save for the next year, when you do have to pay for that expense. In addition, it will make you more liquid during that period.

Just keep in mind that, if your credit is for more than one year, the financial institution that granted it to you will charge you, in the remaining monthly installments, the auto insurance, which will be contracted with an insurer with which they have an agreement, so you will not be able to choose

3. Low rates

As in all loans, the automaker has an annual interest rate that you must pay, so, when comparing, this item is very important.

The rates for these types of credits average 15 percent just like car registration loans so look for one below or equal to that percentage.

4. No penalties

Do not forget to make sure that the institution that offers you the credit does not charge penalties for payments or early settlement on the vehicle registration loans, as this can reduce the interest you would pay.

A credit that penalizes you for this type of action, regardless of the period you should wait to perform them, should be immediately discarded.

5. Research and read the contract

Automotive credit can be granted by banks, self-financing, among many other lenders, so you must investigate who will grant it and if it is reliable.

In addition, reviewing your contract in detail will prevent you from taking surprises with commissions that were not mentioned in the beginning, but that do appear in it.

These two things will help you protect yourself from any fraud and acquire a credit that affects your long-term finances.

Did you like the article? Is there anything else that indicates that a car loan is good and that we have not mentioned? Share your comments!

Car Registration Loans Versus Auto Title Loans

Title Loans Vs Registration Loans in Phoenix

When you need quick cash you may know of a few options to choose from. Years ago, you could take out a loan with a bank, borrow cash from family or friends, or apply for a payday loan.

Today, there are even more options. You can now use the equity found in your vehicle to get the loan that you need. You’ve also probably heard of a registration loan and a title loan. While they both have to do with vehicles, certain differences set them apart from one another.

Both loans will require different means in order to secure them. They will both have different interest rates, as well. While there are pros and cons to these two loan types, most people usually choose online registration loans when it comes down to it. One of the main reasons why this is true is because you will provide the vehicle’s registration in exchange for the loan.

With a title loan, the pink slip or title is what decides the loan amount. The lender will hold onto the car title while you use the loan. Title loan companies also insist that you own your vehicle before they will give you a loan.

Both types of loans are considered short term loans that should only be utilized in the event of an emergency. Many people lean toward registration loans because they can take out more than one loan at a time. This isn’t possible with a title loan. You should always stay up-to-date on the rules and regulations in Arizona by checking the Arizona Vehicle Code and Revised Statutes. This will help you keep all of your loan documents valid in the event you need to use them for a loan. These types of loans are becoming more popular throughout the United States every single day. They help out thousands of people on a daily basis who need fast cash.

You’ll be asked for the same types of requirements when you apply for either loan. Title loan lenders base how much they are going to write out a loan for on the value of your vehicle. However, registration loans are different.

You’ll be asked to provide your current income, personal information, and job details. They will not consider the title of the vehicle. When you do get a loan from either company you will be able to keep driving your vehicle while the loan is out.

Another great perk of both loans is the fact that lenders don’t base your approval off of your credit score. As long as there is enough equity in your vehicle you will likely be approved on the spot.

Online title loan companies in the Phoenix area usually run between 25 and 50 percent of whatever your vehicles is worth. Sometimes, you need more than this, and that is where registration loans can help. Registration loans also usually offer much better financing terms than title loans.

Vehicle registration loans are often compared to payday loans. You are required to repay a registration loan all at once, just like a payday loan or online cash advance. This differs from a title loan company who usually allow their borrowers to pay in increments.

For people who have trouble coming up with a lot of money at once, this could be a problem. However, if you know for a fact you will have the right amount of cash when the loan is due, then registration loans can be the best choice. If you find a Phoenix company that allows you to prepay the loan in full, this will help you save in finance charges.

Car registration loans are often preferred over title loans because borrowers see that the process is more lenient. You can be funded the very next day if you apply for a registration loan, even when you don’t own the vehicle outright. For borrowers who still have years left on their automobile loan, this can be a blessing in disguise.

Buying Used Engines

Tips on Buying Used Engines

Nowadays, you can buy just about anything on the Internet, including automobiles and trucks. You can even buy used auto parts online. The ability to buy such parts through online junkyards takes a lot of the hassle out of the buying process and can make the purchase happen far quicker. Still, before you buy any used auto parts online — especially a used (or remanufactured) engine — there are some important things that you really should know.

Here are some handy tips for buying a used (or a remanufactured) engine on the Internet:

1. Understand Exactly What You Need

The first thing you need to do before buying a used engine online is to know exactly what you need. At first blush, this may sound ridiculously obvious, but knowing exactly what you need entails you collecting far more information than just the make, model and year of your vehicle, and it is necessary regardless of whether you are buying the engine online or through a local junkyard.

The first piece of information that you need to collect is your vehicle’s VIN, which you should be able to find in your vehicle. This is necessary because this number provides the online dealer with a wealth of information about your vehicle and the exact type of engine it requires.

You also must find the size of your engine, which is one of the most important pieces of information you can provide the vendor. Usually, the size of the engine is listed on the engine’s valve cover, which is right on top of the engine. So, you should be able to see this information as soon as you lift the hood. Keep in mind that the engine’s size will be listed in liters. For example, 2.4L or 4.0L. On some vehicles, the size of the engine is listed on the hood. You will find it on the emissions label.

Finally, you must provide the online dealer with your vehicle’s transmission type, which is either standard (stick-shift) or automatic. When you are searching for used (or remanufactured) engines, you will often see this information listed along with the part, and it will either be written as “AT” (automatic transmission) or “MT (manual transmission).

2. Learn About Who Is Selling You the Engine

Whenever you buy anything online, you should know who you are buying from. But this is particularly true when shopping for a used engine. Because of this, some people prefer to buy engines from local shops even when they are buying online, and you should be able to find address information easily on the company’s website. Buying locally can further save you when it comes to shipping costs. It can also make things a lot easier if you happen to require any warranty service.

If you do buy from an out-of-town seller, make sure that they have a good reputation. Check out reviews on the web and any rankings the company may have accumulated.

Regardless of where you buy the engine, you should find out how long the company’s warranty is (if they even provide one), and you should learn all about their business policies — such as the charging of sales tax and how they handle returns — before you become a customer.

3. Calculate All the Costs of the Engine Before You Choose One

The price of a used engine is only one component of its total cost. There are two other major costs of a used engine that you should be aware of.

The Core Deposit

Those who sell used (or remanufactured) engines require that buyers pay what is called a core deposit. This is to guarantee that you will send them your old engine in return, and this cost can fluctuate anywhere from $50 to $500, depending on the engine you own.

Your old engine has a certain core value, which the online dealer will make use of when they recycle the engine. Once they have received your engine, they will return your deposit back to you. This is another reason why you may want to choose a local dealer, whether or not you are buying the engine online. Obviously, it will be a lot easier to deal with this process if it is handled locally.

The Cost of Shipping

It is important to realize that most websites will not list the cost of shipping in the engine prices they list. Some websites, though, will clearly list the shipping costs, while others will require you to first add the engine to your shopping cart and begin the checkout process. For this reason, it is critical that you hold off deciding which engine to buy until you are comparing apples with apples. This means that you are comparing the total cost of one engine with the total cost of another.

Because engines are heavy, their shipping costs can be quite high. Typically, the cost of shipping a used (or remanufactured) engine will cost you anywhere from $125 to $250. This may be reason enough to purchase the engine locally, and often you can still make the purchase online if that is what you prefer. Another benefit of buying locally is that you will often get your diesel engine far more quickly.

Flowmaster Vs Magnaflow

Flowmaster vs Magnaflow Exhaust Systems

Exhaust systems are an important component of a car and car enthusiasts who build cars and work on old muscle cars use high tech exhaust systems to give their cars more horsepower and to make their cars sound better. Two of the best exhaust systems available on the market today are the Flowmaster and Magnaflow. Here is a brief look at Flowmaster vs Magnaflow exhaust systems.

Flowmaster Exhaust Systems:
Flowmaster has been creating exhaust systems for over 22 years and is one of the top producers in the world. Their dual and cat black exhaust systems are created to be the best performing in the world. They create each system specifically made for the car or truck it is to be used in. They use a high tech smooth mandrel bent tubing system that gives the vehicle more power and better fuel mileage.

Flowmaster is best known for its huge gains in vehicle power and wicked exhaust tones. Their exhaust systems will work for just about any make or model of vehicle. One thing is for sure, you will not be disappointed in their line of exhaust products.

Magnaflow Exhaust Systems:
Magnaflow exhaust systems perform much in the same regard as the Flowmaster. They are made to give the vehicle more power and really deliver in that department. What they are best known for are the exhaust tones their systems give off. In reading of their customer reviews, many of their satisfied customers all rave about how great the car sounds once their exhaust flow systems are installed. It gives the vehicle a new deep sound that lets others know of its impressive power.

They also have systems that will fit any make or model of car but offer more in product selections. This means that you will have the ability to add even more power and more sounds to an already powerful system. Check to see what types of options they have for your vehicle. You may be surprised at the vast amount of choices and different options you will have in an exhaust system. You can even customize it to fit your power and fuel efficiency needs. You will not be dissatisfied with a Magnaflow system either.

So in comparing the Flowmaster vs Magnaflow exhaust systems, both systems will over deliver in power and performance with each offering their own unique sound. You might want to hear what each system sounds like first before you make your purchasing decision.