Qualifying for a Phoenix car title loan is easy and all that is needed is a clear title on your car. The mileage and value that is a benchmark varies from person to person. Though some lenders need that you show the income stub but there are others that offer these loans to those who do not have a job. But some documentation is needed by car lenders before the loan is approved. Not only will you need the car for inspection but the pink slip needs to be turned over to the lender. You’ll need to provide:
- Social Security card
- Valid driver’s license
- Insurance proof
- Vehicle registration
- Proof of residence- utility bills, rent receipts
- Extra car key (Optional)
Though on an average the repayment for the Phoenix car title loan is 30 days and though most lenders extend the loan term to accommodate their need but charge a fee for every renewal. But if the borrower defaults on payment of the interest and other fees, the lender repossess the vehicle. Usually the trade in value of the car is used by the lenders when they are looking at the amount that a car title loan borrower is to be given. As the risk of non-payment of loan is probable, the lenders want to keep as collateral a car that can be sold quickly in order to recover their cash.
However, consumer advocates say that most of the auto title lenders do not educate the consumer and charge high fees. Some Phoenix car title loan lenders install GPS within the cars making it easier to monitor the cars that are as collateral.
To determine the true value of the Phoenix car online, all lenders refer to the Kelley Blue Book and it allows the lenders and consumers to ascertain the real value of the car that is being put as collateral. It is best not to leave out any details when you are inputting the vehicle details.
You can avail about 25% to 50% of the car’s value when you are approved for the loan. The total amount of money that you finally receive depends on the discretion of the lender. None of the lenders take the risk of losing money if you default on the loan but repossess the car and give you 30 days to pay the loan and take back your car. But if the loan and interest is not paid back, the lender has legal authority to sell your car and recover the money.