2/20/2009

CASH TITLE LOANS - HOW MUCH AUTO EQUITY DO YOU HAVE

Cash title loans often the fastest way for someone with a low credit score or bad credit to get quick cash. As a secured loan that uses an automobile title as collateral, this bad-credit instrument is typically a short-term loan with lower interest rates than an unsecured loan.

The minute a new car drives off the lot it instantly depreciates. When applying for cash title loans, many people are surprised to learn just how much their vehicle has or has not depreciated in value. Lenders will consider a number of factors when determining how much a vehicle has depreciated from the time it was purchased. Some of these factors include:

* Make and model of the automobile: The vehicle brand's reliability and safety reputation is what determines this factor. If a brand or model is more likely to sell, it will maintain its value better than others.

* Popularity: Vehicles that are more popular in the used car market are a better sale for the lender should they have to repossess and sell it. Hence, popular brands hold their value better.

* Mileage: The more your automobile was driven, the more its worth will decrease. So, the more miles on the odometer, the less it is worth.

* Vehicle history: Salvaged automobiles or those that have been in accidents and have rust damage and dents are less valuable, because the damage they have sustained makes them difficult to sell.

* Condition: Vehicles that have been well maintained are easier to sell in the used car market and will fetch a higher price.

* Location: Sometimes the place where a vehicle is sold can affect its value, especially if it was built for a specific terrain or weather conditions. For example, a 4x4 outfitted for snow is not as valuable in New Mexico as in Michigan.

* Options: Manufacturer upgrades such as interior upgrades, new tires etc. all increase the value of a car. So if you've added any features to your automobile, be sure you consider all of them when you calculate the auto equity.

How to Calculate Auto Equity for a Cash Title Loans
When a lender evaluates your application, they will make every effort to get an accurate value for the automobile you have offered as collateral. Most lenders will not offer you more than 50 percent of your car's equity in cash, because they have to ensure that, should you default on your payments, they can cover the debt through repossession and sale of your vehicle.

The Kelley Blue Book, a guide to used car values, is an indispensable resource for borrowers to research their vehicle's value. The company is the United States' largest automotive vehicle valuation company and their website is a source for new and used vehicle pricing and information.

Before you contact a lender, use this resource to calculate your car's trade-in value (equivalent to the wholesale value) as this is the number that the lenders will use when deciding how much money to loan you. Cash title loans can get you quick cash, and allow you to keep and drive your vehicle while you repay the debt. Determining the auto equity on your car will help you get the maximum amount for your car title.

SOURCE
http://www.123fundme.com
http://EzineArticles.com/?expert=Andrew_Stratton

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