Title Loan on Company CarWhat is a title loan with company car?
A title loan with a company car is a secured loan that one could apply for by using his or her company car title as collateral. The processing time for most title loans is extremely short, and the lender uses the value of the borrower’s company car to determine his or her loan limit rather than the applicant’s credit score. Typically, the repayment period is 30 days, and the lender may repossess the collateral if the borrower fails to repay the loan on time.
What are the benefits of a title loan with company car?
Just like other title loan outside there, this type of title loan has its advantages as well as drawbacks that you would need to contemplate before you decide to apply for it. In the sections below, we have scrutinized the top benefits and drawbacks of car title loans that involve company cars to help you make an educated decision about them.
Dissimilar to most loans, this type of title loan is quick to secure. On average, it takes less than two days for the loan to get processed. As such, this could be a good option if you are looking to get some quick cash to help you sort out urgent financial issues.
Most lenders use your credit score to approve or deny your loan application. This implies that if your credit is weak, lenders may turn down your loan application. The good news is that your credit history is not considered when applying for a title loan with your company car.
Another advantage of this type of title loan is that the lender will let you use the company car as usual. However, we suggest that you repay the loan as agreed to avoid losing the collateral.
You may also want to consider this loan due to its low interest rates when you repay the loan as soon as the lender had stipulated. The car title loan involving company cars also comes with convenient repayment options and a straightforward application process.
How to get a title loan on company car
Ideally, most car title lenders operate both online and at their respective physical stores. That being the case, you can complete the application process online and afterwards you will be asked to present your company car, the car title, identification documents, and duplicate keys to a nearby physical store to complete the transaction.
At the physical store, an expert will visually inspect the car and later issue an estimated value of the car. Afterward, the lender will retain your vehicle title and place a lien on the company vehicle before you receive the title loan.
To get a title loan on a company car, you need to:
- Be an adult aged above 18 years old.
- Provide a government-issued proof of identity
- Provide utility bills for residence proof
- Provide car insurance documents
- Give documents showing that the company car is lien free, and it does not have outstanding payments.
Can you secure a title loan on company car that is not paid off? Has this been your concern? If it has, the truth is that you cannot secure a title loan on company car that is not paid off. But could you get a title loan on company car that is financed? Sure, you will be able to secure a title loan on company car that is financed.
Are company car title loans tax deductible?
Hypothetically, most business loans are tax deductible. For this reason, if you are a company owner, you can take advantage of your company's car to secure a car title loan to obtain money that you need to run your company.
However, since the tax breaks are not automatic, you should get prepared to complete the necessary paperwork required to file the tax deduction.
What to consider before signing a title loan on company car
As we all know, the no-credit auto loans are subject to predatory service providers who offer title loans at unrealistic rates that may keep you in the ocean of debts forever. Below is a list of prime tips that you would want to consider if you want to avoid falling victim to the predatory lenders.
- Get services from reputable companies - Reputable companies are known for their credibility, reliability, and excellent services that are often tailored to meet the firms’ customer's needs. As such, we recommend that you ask for referrals from friends or check through the trusted review sites to choose the best title loan lender.
- Avoid lenders with unrealistic promises - Financial experts say that predator companies focus more on deceptive and unrealistic advertisements aimed to lure unsuspecting drivers into their trap. Thus, we recommend that you avoid those lenders that focus a lot on the language around "approval."
- Shop around for the best deal - Ideally, title loans are short-term loans whose interest is relatively high. Based on this, you will want to repay your loan as soon as possible to avoid paying more. As such, we would advise that you avoid companies that may want to trick you into the trap by the promise of offering low monthly premiums.
- Read through the terms of the loan before signing - Car title lenders are expected to provide you with a written copy of the title loan terms before you sign for the loan. However, most drivers do not read the loan contract forms before signing. As a result, they end up falling victims of hidden costs that may inflate the cost of the title loan. As such, you need to read and understand the contract form before you sign.
Make sure that the terms show the amount that you borrow, the amount you are expected to pay back, and the APR. The contract form should also show other expenses like processing fees, late fees, rollover rates, lien fees, and all information that relates to the title loan.