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 clients.
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 terms.
To get started today, all a client has to do is complete the quick online questionnaire. . 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 dilemma.
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 minutes! Reach out to us and see just what we could do for you!