What Is Car Equity and How Do I Find Out Mine?

December 10, 2018

Simply put, a cars equity is the value of the car. Cars can have negative or positive equity if they have been financed. The difference between the cars value and the loan’s balance is used to determine equity.

If a driver owes more on their loan than what their car is worth, they have negative equity. But if the car’s value is worth more than the remaining balance of the loan, it has positive equity.

How a Car Is Valued

There are many factors taken into consideration when determining the value of a car. Lenders will take into account the make, model, year, condition, and odometer of the vehicle.

Cars are used as collateral in a title loan. If a car is repossessed and has to be sold, any modifications could affect how much a lender is able to make from the sale.

An appraisal from a car dealership can determine the true value of a person’s car, or, by using a trusted online appraisal tool such as the Kelly Blue Book.

Remember that the demand for a car, as well as the market value, can change based on the terrain of the area and the commute.

How to Calculate a Cars Equity

To find out a cars equity, a driver must first get the value of their car. The value is used in the calculation of a cars equity.

The value of the car is subtracted from the amount a car owner owes to a lender. For example, if a person used the Kelly Blue Book appraisal tool, they may have discovered their 2017 Chevrolet Spark is worth about $8,218. If they owe the lender $2,000, and the lender charges a $150 payout fee, then the cars equity would be $6,068.

The difference between the value of a car, and how much is owed to the lender, is used to determine the cars equity value. If a car owner doesn’t have any loans on the car, then the equity is simply what the cars value is.

Can a Car’s Equity Be Used to Borrow Money?

Yes! A cars equity can be used to qualify for a car title loan. If a potential borrower’s car has high equity, they may qualify for a loan.

Aside from a cars equity, credit score and the ability to pay back a loan are used to determine eligibility. If a person has low credit or low income, they may have a harder time acquiring a loan or face paying high interest rates.

MaxCash offers free loan assistance to those looking for a car title loan. Whether a person has low credit or low income, we help connect them to a lender1. We’ve built relationships with lenders from all over the nation. We’re able to negotiate with them and ask for affordable terms on behalf of our clients1.

We make all of the calls, ask the important questions, haggle, and acquire loan offers for our eligible clients. And we do this for free!

Process of Acquiring a Car Title Loan

Using MaxCash to find an affordable loan is a smart financial decision. After all, not to toot our own horn, but we’ve acquired a decade of invaluable financial experience. We have connections to lenders all over the United States that are looking for quality customers (you). This gives us leverage to ask for affordable loans with better terms4.

To get started today, all a client has to do is complete the quick online questionnaire. 5. We ask for personal contact information and the cars details such as make, model, and year.

Based on the information presented, we make an initial call to the client and let them know if they have a good chance of acquiring a loan. We get to work right away because we know that time is an important factor in acquiring emergency money.

We call vetted lenders, and ask what they can offer our clients. We fight hard on behalf of our clients to provide affordable loan offers. We know that the financial loan industry can be convoluted, so we offer to help people get the monetary funds they need to tackle any financial dilemma1.

Once we acquire loan offers, we present them to the qualifying client. This client then decides whether they want to pursue the loan offer. If they accept, we connect them to the lender to finish the loan process.

MaxCash offers free, no strings attached, loan processing assistance. If a client decides they don’t like any of the loan offers, they’re not obligated to accept.

Give us a call at (833) 207-9052. We love hearing from people, and are more than happy to answer any questions or concerns. Our offices are open seven days a week, and we operate from 6am to 9pm!

So what are you waiting for? We may just be able to get a list of compatible lenders in minutes5! Reach out to us and see just what we could do for you!

DISCLAIMER: The MaxCash website does not offer or provide loans, but rather, it offers a service. It should not be construed as a lending agent or broker. The site does not endorse any lenders and does not charge visitors any fees. The website owners do not evaluate potential lenders’ applications, nor do they approve or deny credit. The MaxCash website does gather applicants’ personal information and transmits it to lenders that are part of the site’s lending network. No one is required to make use of this website, nor are they under any obligation to begin contact with site operators or to attempt to secure a loan with any of the site’s lending partners. Transmission of your financial and personal information on the website in no way obligates lenders to offer you a loan or any other kind of credit product. Be aware that cash transfer times can vary, depending on the lender and the bank you use. It may be necessary to fax information under certain circumstances. All questions about loans, and any concerns you may have should be directed to your lender. These loans are intended as short-term financial solution to satisfy borrowers’ needs for immediate monetary relief. This is not intended to be part of a long-term financial plan for individuals. These services are not offered in all states. Potential borrows may undergo credit check if lenders choose to use any of the major credit reporting bureaus, including Equifax, Trans Union and Experian. They may also use other alternative sources to check credit ratings. Your request for a loan constitutes your agreement and acknowledgement that (A) your personal data may be shared with lenders and perhaps other third-party partners, and (B) lenders can acquire credit bureau reports that detail your credit history. Reports from major credit bureaus, such as Equifax, Experian and TransUnion may be obtained and used to evaluate your reliability as a borrower.
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