Can You Use Multiple Vehicles To Get A Title Loan?
People who own multiple vehicles may wonder if it is possible to use all of them to obtain a title loan in a higher amount. As long as you are the registered owner of those cars or trucks and they are free of any liens (i.e. paid off), a title loan company will let you use all of them to secure cash for your needs. Be prepared, though, you will run into these two issues when going this route.
Your Income Must Cover the Repayment Amount
Loan companies will let you borrow all the money you want as long as you are capable of repaying the loan when the time comes. So, even though your vehicles can provide collateral for a $5,000 loan, you may not get approved—or you may be limited to a lesser amount—if your income will not cover the monthly payments, for example.
Thus, be sure to report all your income to maximize your loan size. For instance, let the company know about any cash you receive from gigs (e.g. Lyft, UberEATS) or support money you get from an ex-spouse or the government. You will need to provide the proper documentation showing the additional incomes, such as bank statements or check stubs, but you should not have any problem getting approved for the higher amount when you do.
The Company May Have a Loan Limit
Another issue you may come up against is many title loan companies have a maximum limit any person can borrow at one time, regardless of how much collateral the person has. Your two vehicles have a combined value of $15,000 but the company only allows individuals to take out $10,000 at the most, for example. You will either have to settle for that or find a company that will let you get a loan for a higher amount.
Additionally, title loan companies will usually calculate your loan approval amount based on a percent of the car's or truck's value. According to the FTC, these loans are typically only for 25 to 50 percent of the vehicle's appraisal amount. So, although your cars are worth $15,000, the most you could get is $7,500, for instance. Some companies may offer a greater percentage, so you will want to call around for the best deal.
To learn more about how auto title loans work or to get cash for your financial needs, contact a loan company in your area for assistance.