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What is a Title Loan?
If you own a titled piece of personal
property, and you owe little to nothing on the car, truck, boat, motorcycle, or
recreational vehicle, you can get a title loan. Because the title is security
for the loan, we call it a title loan. Some companies make you pay off the loan
every 30 days and renew. Other companies, like Affordable Equity Finance Co.,
set the loan up on amortized monthly payments, so the loan pays itself off.
Interest rates on title loans range from 80% to 335% APR. Loan terms range from
1 to 24 months. If the loan is not paid on time, the security is repossessed
and sold to satisfy the loan balance.
What is a
Salvage Title?
A salvage title is an
automobile
title with a notation that the
vehicle has been damaged in excess of approximately
75% of its previous
market value. This notation gets
applied to a
title when an
insurance company pays a total-loss
claim on a vehicle, but then
allows the owner to retain or buy back the vehicle at its
post-damage market value, which is often negligibly low. Often a
vehicle is still safely drivable even if technically considered a
total loss by an insurance company, particularly with older vehicles
where even minor cosmetic damage would cost more to fix than the
vehicle's whole market value. (Reference
Wikipedia.org)
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