Are you interested in getting a title loan but unsure of how much money you can borrow or how much equity there is in your vehicle? A title loan lender will decide how much money to lend you based on various underwriting factors. These may differ somewhat between lenders, but the primary focus is usually your vehicle's value and your ability to repay the loan.
Getting as much money as possible with a title loan relies mainly on these factors, but sometimes, other considerations come into play, and it's up to you to maximize your loan amount with a car title loan.
How Much Can You Get from a Title Loan?
A title loan lender may base an approval as well as a loan amount on the following:
- Your vehicle’s value is a big part of the process since it will be collateral or protection for a title loan lender. A lender will inspect the make, model, condition, mileage, year, and more to determine the market value on which you want to get a loan.
- After the lender assesses the vehicle's value, they calculate the loan-to-value ratio. The LTV represents the percentage of your vehicle's value that a lender will lend you. For example, if your car is valued at $12,000, and the lender offers a loan based on 70% of the vehicle's value, your loan would be $8,400.
- A lender usually wants to verify your income. You can provide bank statements or pay stubs to show you can make loan payments.
- Unlike a traditional loan, a title loan usually doesn't require good credit. Some lenders might even check your credit history for recent repossessions or bankruptcies.
- Title loan regulations vary by state. Lenders must consider legal restrictions and requirements where they operate. The rules could require lower loan amounts and a limit on how much they lend.
- The loan amount and terms will also depend on your preferences and needs. You may be able to select a shorter or longer term, which will impact the loan amount and your monthly payments.
To get this process started, you'll usually fill out an application and provide information about yourself and the vehicle. The lender reviews this, assesses your vehicle value and then bases your loan amount on the factors above.
What's the Most Money You Get for a Title Loan?
The maximum you can get on a title loan depends on the value of your vehicle as listed above, state laws and regulations, and the specific lender you work with. Title loan amounts generally range from a few hundred to several thousand dollars. As of 2024, the average loan amount for customers who apply with Highway Title Loans is $2,600, and some customers can get approved for upwards of $20,000 with high-value cars and trucks as collateral.
Some states do have particular maximum loan amounts. Others might limit the amount of title loans based on the vehicle value or your income as a borrower.
How Can I Get The Most Money Possible With My Title Loan?
If you haven't yet gotten a title loan, but you're planning on it, and you want to maximize that amount, you can do the following:
- If you have more than one, choose your most valuable vehicle since this is the primary determining factor of your loan amount. A newer vehicle in good condition with low mileage will be best in terms of the appraised value, potentially allowing you to borrow more.
- Having a well-maintained vehicle is helpful. Keep up with maintenance and address any issues promptly. If you can provide detailed records to show the condition of your car to a lender, it would be even better.
- Some lenders may let you increase your loan amount by providing more collateral like personal assets or a second vehicle, but this also comes with a higher risk level.
- Choose a longer loan term because, in some cases, they might give you a higher loan amount. From the lender's perspective, they may be willing to extend more credit to you if it means you're paying interest for longer.
- Shop around because different lenders usually have their policies and offer varying loan amounts.
- Negotiate with a lender to increase the loan amount.
Can You Get More Money on an Existing Title Loan?
Whether or not you can get more money on an existing title loan depends on factors like lender policies and the terms of your current agreement.
Some lenders offer title loan refinancing, so you could extend your existing loan term or borrow more using the same vehicle as collateral. To refinance a title loan, you may have to pay off your current balance and get a new loan with adjusted terms.
Lenders might offer extensions or renewals so you can delay repaying your existing loan while borrowing more, but this will probably mean additional fees and interest charges, so you need to consider the overall cost.
If you have an existing loan with one lender, you might be able to get a new loan from a different lender to pay off the existing balance and borrow more. This is called either a loan buyout or refinancing with a different lender.
How Many Title Loans Can You Get?
How many title loans you can get on the exact vehicle at once depends on the regulations in your state or where you're getting the loan and individual lender policies. In many states, it's against the law to have more than one title loan on the same vehicle simultaneously.
If you're considering getting multiple auto title loans on different vehicles, that's usually possible as long as each car is collateral for a separate loan. The risk here is whether or not you're going to be able to pay off multiple loans at the same time.
What Else Should You Know About Title Loan Funding Amounts?
If you're wondering how many title loans you can get or how you can get more money, there are a few other things to keep in mind:
- Title loans are secured by your vehicle, and that means your vehicle can be repossessed if you default. Make sure you're assessing your ability to repay a title loan before borrowing a large sum.
- Title loans don't usually require a credit check, but defaulting on one can negatively affect your credit score.
- Read the fine print of your loan's terms and conditions before you sign.
Title loans are a way to access cash quickly, but approach the process with awareness and understand what will happen if you default on the payments. Maximizing the amount of money you can get with a title loan involves an assessment of the value of your vehicle, state and lender policies and regulations, and your financial situation.
Borrow what you need and can afford. Car Title Loans 123 is here to get you approved for the highest loan amount possible, so call us today at 877-433-5454 to get started!
Janet Patterson is VP of Marketing Communications for Highway Title Loans and the feature editor of its Lending Blog. Janet has worked in the financial service industry for over a decade, with 7 years of experience in the car title loan industry. She previously managed a customer service team that helped and advised consumers on all their lending related questions and concerns.