In California car title loans actually get approved more than you would think. I know the average suburban resident living in Montana might not be able to relate with getting a loan based on the equity of their car – but it’s all too real. If you have never been to California, much less Los Angeles, you may still be scratching your head on the whole vehicle title loan thing – if you have ever been to some parts of California , or live there, you can fully understand how a car title loan could work.
Now I’ve looked into some of these car title loans in L.A. and Frisco, and I’m here to tell you that there are some cars out there worth as much as most California residents’ homes. If you are lucky enough to own Bugatti outright, then the banks won’t have a problem holding title to it. So you can see after looking at those cars, they have more value then most homes do. I was going to post pictures of some really expensive cars , but the link above does quite fine. I had to put a picture on the top this article that could fetch you a car title loan of over $1,000,000 dollars. Your banker would likely be foaming at the mouth when you show him the title on a brand new Bugatti (click here to do your own foaming)
Documents You Need For A California Car Title Loan
You need to have your documents is order before you can apply for a car title loan in California. You will need the following documents [courtesy of California Title Loans]:
Vehicle Title: This is a document issued by California state, which declares that you are the legal and rightful owner of the car.
Driver’s license: A driver’s license serves the purpose of being a proof of identification.
Proof of income: A copy of your last paycheck stub. This lets the lender know if you a credible and viable borrower.
Proof of residence: It’s a security measure for the lender.
Vehicle insurance papers: A copy of a the car’s insurance documentation.
So in the new shrinking economy there are some rich people losing their shirts, and yes, their wheels. You know the divorce story too right? Middle aged man gets rich, decides to get stupid, and starts messing around. Drives his new thrill around L.A. in his half a million dollar car, and eventually crashes. His marriage crashes, and all has left when his divorce is finalized is his fancy car.
California Car Title Loans - Click to Enlarge and Drool
So now his credit rating is a mess, and he has no home. He has his job, but he needs to get his financial house back in order. He doesn’t want to give up his fancy car all together, but he needs some folding money to get him through a rough patch. Bingo – this is a perfect example of a car title loan waiting to happen.
So he moves back out to Orange County and moves in with his brother. Uses the money from his car title loan to put a down payment on a brand new condominium, and moves back out on his own to start again. Of course, his thrill…….she is long gone of course.
That is just one scenario of a car title loan going to the books with the banks in California. This example is common in all the big Cities and States, but California is the perfect example. Car title loans don’t come easy unless you have a car the banker thinks is worth taking a risk on. Of course they’re really taking the risk on you. The banks will use the equity you have in your car for sure, but they will also look at your recent purchasing, your past payment history, your everage account balance, and your FICO score.
Hope this helps you understand what a car title loan is. I’ve never been accused of being the sharpest stick in the shed, so please comment below to enlighten me or correct me where I’m dead wrong.
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