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What are the things lenders check on cars before accepting it as collateral?
#1
I've not been a champion of title loans in the sense that I've come to realize that it is always a risky move to use cars as a way of getting loans. However, one thing that I keep thinking about is what is the criteria banks and companies that give loan check on cars before giving out loans to the borrower. Sometimes, some persons might present a faulty car all in the name of getting loans. What and how do these banks ascertain that the car is truly in good condition?
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#2
I was actually about to ask this very question. I watched a video about a man who had gotten a title loan on his car in order to obtain the down payment for a 10 acre property with existing mobile home infrastructure, which was up for sale at a tax lien auction (previous owner deceased -- in all other situations, I wouldn't be okay with taking property under those circumstances).
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#3
The newer the vehicle is, the more money you'll be able to borrow. I also suppose the lender would make some kind of inspection on the car in order to evaluate its condition. If the car is in bad condition, they may refuse to lend you money, but this is just a guess on my part.

Usually you can get 25-50% of your car's market value with a title loan.

Based on the research I've done, the documents you'll need are:

- Original vehicle title showing sole ownership
- Government-issued identification matching the name on the title
-Utility bill or other proof of residency matching the name on the title
- Current vehicle registration
- Proof of vehicle insurance
- Recent paystubs or other proof of ability to repay the loan
- Names, phone numbers and addresses of at least two valid references
- Working copies of the vehicle's keys
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#4
(01-22-2018, 04:22 AM)chikatilo Wrote: The newer the vehicle is, the more money you'll be able to borrow. I also suppose the lender would make some kind of inspection on the car in order to evaluate its condition. If the car is in bad condition, they may refuse to lend you money, but this is just a guess on my part.

Usually you can get 25-50% of your car's market value with a title loan.

Based on the research I've done, the documents you'll need are:

- Original vehicle title showing sole ownership
- Government-issued identification matching the name on the title
-Utility bill or other proof of residency matching the name on the title
- Current vehicle registration
- Proof of vehicle insurance
- Recent paystubs or other proof of ability to repay the loan
- Names, phone numbers and addresses of at least two valid references
- Working copies of the vehicle's keys

I found this list of documents one need to provide before getting a title loan and that is going to help members here who are still confused on what to do as regards getting loans from firms and companies that accept cars as collateral. However, this is still far from my question for I've seen some shady deals of buying a car and changing many things just to show that it is new and I wonder what measures the banks take to ensure they are not shortchanged in the car being presented as collateral. 
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#5
If you need to take a title loan you will need to provide the documents showing that you are the owner of the vehicle, spare keys, 2 or more references, vehicle insurance and other things. 

If you can provide all the document, you will get a loan that is not more than 50% of the vehicle's value. You must show the ability to repay the money and most car loans are paid back within 30 days.
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#6
I think the lender will check the papers of the vehicles first. They will check the documents, papers and other proof that it is your own car. Also, they will check whether it is brand new or second hand.
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#7
I am sure the lenders will check the title, the condition inside and out, and the blue book value. I do not expect you will get a very large percent of what your car or vehicle is worth. I am sure as long as it is a loan that will benefit you at the time and you can meet all the requirements then its not a terrible thing.
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#8
Just like in any other title loans, you need to provide all the vehicle's documents. The value will be assessed based on the year model, the type of vehicle, and the current market value. Most lenders do not accept cars as collateral if it's (I think) 10 years old and above. Since the value of it has depreciated a lot and the loan amount will not meet the percentage of the vehicles current market value. So an old, faulty vehicle will highly be denied to the loan applied.
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#9
They first check if you own it. They then check the value of the car which they can determine from what year the car is. They tend to calculate how much it has depreciated since then. They also ensure that you have insured the car, in case of any accident, they would lose their collateral. However some lenders especially loan sharks are not really that bothered and just need the title to the car. Pray you get those without the extortionate interest rates of course.
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#10
(01-22-2018, 05:18 AM)OlaSidiq Wrote: If you need to take a title loan you will need to provide the documents showing that you are the owner of the vehicle, spare keys, 2 or more references, vehicle insurance and other things. 

If you can provide all the document, you will get a loan that is not more than 50% of the vehicle's value. You must show the ability to repay the money and most car loans are paid back within 30 days.

It's interesting to read that most title loans doesn't exceed a maximum of 30 days which will make it easier for the lending company to recoup most of the money given to the borrower. The truth of the matter is that I still see a title loan as a risky one no matter how confident people feel they can be by getting loans through that. 
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