Loans and debt have established themselves as staples of adult American life, especially given how most major life steps, such as buying a car, a home, or a recreational vehicle, are huge investments that often require loans and repaying those debts over time. That, and the fact that most Americans own or lease a car or truck, means that loans and cars often overlap for most adult Americans. One way which these two industries overlap is getting cash for your car title, or a car title loan. Searching “registration loans near me” will help someone find the best car title loan shop in their area, and some searches like “registration loans near me Flagstaff AZ” or “registration loans near me San Francisco CA” may yield more specific results if need be. What should someone know about the current state of car ownership, and what general trends are out there in terms of loans, debt, and credit? Where do car title loans fit into all this?
Adult Life and Debt
Taking out loans and having debt to pay off is generally accepted as a matter of course for adult life today, and there are plenty of statistics that keep track of all this data, especially in terms of automobiles and loans. In fact, it has been found that in the year 2017, car debts made up 9.03% of all American citizens’ total debts for loans. It has been found that the top three reasons Americans take out loans are car expenses at 31%, getting money for bills at 26%, and getting cash for personal emergencies at 21%. Just how often to Americans take out loans for cars, and what do these loans look like? A record-setting 107 million Americans are in the middle of paying off auto loans today, and as of the year 2017, the average loan for a new car stood at $31,099. Personal loans may vary greatly in amount, whether for cars or anything else, from a mere $50 all the way to $200,000, but it has been determined that the average loan is closer to $7,576. Given how 44%, or almost half of American adults are currently paying off car loans, it is important for a person to know all their options, and know what they are doing ahead of time. In many cases, a dealership will offer on-site financing for someone who is purchasing a car there.
A Car Title Loan
Anyone interested in finding a car title loan may ask their local bank or another loan service to get the name and address of a local car title loan place, and another option is to conduct a thorough Internet search, with a query such as “registration loans near me” to get the name and address of such a place, and they can visit. Anyone looking to take out such a loan will drive there in their car and bring the car’s registration and title.
At the loan shop, the customer will offer his or her car’s title as collateral for the loan, and this makes a title loan a sort of secured loan. The process itself is fairly simple and fast, and often takes half an hour or less. The borrower will probably not even need to provide their credit score or proof of income, and in a short time, that customer will receive their loan, hand over the car’s title, and leave.
Someone taking out this sort of loan should be careful. Such a loan will have to be paid back either within 30 days or across several installments, and either way, the borrower can expect very high APR, often 200% or higher, and if the person violates the terms of the loan, the car will get repossessed. What is more, it is common for lenders of this type of loan to take out more than one loan, and in some cases, a borrower may renew their loan seven or more times, and this may create a cycle of debt, especially seeing how fees are incurred every time this loan is taken out, and that can mean problems. For these reasons, someone taking out a car title loan must know exactly what they are doing.