What Shape Does Your Car Need To Be In for a Title Loan?

Life is unpredictable at times, and you may find yourself in a short-term financial constraint requiring a quick solution. A title loan may be your timely help. The loan uses your vehicle as collateral for the credit. Though the financial product is called a car title loan, it also applies to motorcycles, and boats, among other automobiles. 

The loan can either be a single repayment or an installment repayment plan. Here are the conditions that determine if your car meets the loan criteria:

Value and Condition of the Car 

Your car will undergo a lender's valuation to determine the street value before using it to obtain a loan. Valuation informs the forced sale value (FSV) the car may reasonably go for if the lender sold it to recover the loan in case of a default. The condition and status of the car will also impact the exact title loan amount you qualify to get. Some of these factors include: 

Make and Model

The loan providers consider the make and model of a vehicle for several reasons, including the resale value of the car. A car that is of high value, new, and a recent model may qualify for a higher amount. 


The age of your car may decrease the loan amount you may qualify for. Older cars have a lower resale value and are considered higher risk. Older cars as riskier because they tend to break down more often, which can impact their resale value. If your car is well-maintained and in great shape, you may still qualify for a reasonable loan amount.

Engine Mileage

The engine mileage of a car indicates how long the car has been driving, how much maintenance it has had, and the amount of wear and tear. A car with lower mileage is an indicator that it has not been driven very often and may still hold a good resale value. If your car has a high engine mileage, it may decrease the loan amount you may qualify for.


Loan providers may check a car's condition because they want to know how well the car has been maintained by the owner. A well-maintained car body, shiny exterior, and clean interior can contribute to a higher resale value. 

Documentation To Verify Car Ownership

Some documents are a must-have for you to use your car for loan collateral. The paperwork required to obtain a car loan may include some or all of the following:

  • Current vehicle registration
  • Government documentation matching the identity on the title
  • Original vehicle title affirming sole ownership
  • Proof of a valid vehicle insurance

Get Your Title Loan Today

If you are in a financial crisis, you may use your car as collateral to get a fast loan. Before you commence the process, find out what shape your car needs to be in to qualify for the title loan. They can give you sound advice to get the loan in a fast and simple process. The best part of a title loan is that you get to keep your car as you make repayments.

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