Are you facing a financial emergency such as an unexpected bill or medical expense? Do you need to secure cash fast? If you own a car and live in Miami, Florida, have you considered Miami car title loans?
Auto title loans are a fast and easy way to secure cash to get you out of a bind. More than 2 million Americans use car title loans to fill gaps in their finances, research shows.
What is a car title loan, and how can you get one? Here’s what you need to know about car title loans in Miami, FL.
What Is a Car Title Loan?
A car title loan is a way of borrowing cash that uses the title of your car as collateral to secure the loan. By using your car title rather than the car itself to secure the loan, you can still drive around during the repayment period. When you repay the loan, the lender returns the car title to you. If the loan is not repaid, the lender keeps the car title.
As the price of cars has risen over the years, you could have a significant sum of equity in your car. Taking out a title loan is a way you can access that finance to cover short-term expenses, giving you more time to get the money.
The fact that you use your car to secure the loan makes a car title loan an option if you have a poor credit history and cannot secure a loan from a traditional lender. It is also faster than a traditional loan because there is no credit check. In most cases, you can drive away with the money on the same day.
How Do Car Title Loans Work in Miami, FL?
You can get a car title loan as long as you are over 18 and own your car outright. Each state has different regulations for car title loans, and terms can even vary between lenders in the same state. In some states, car title loans are repaid over weeks or months, in installments, or as single payments.
In Florida, car title loans are repaid as a lump sum in 30 days, including fees and interest. Lenders of car title loans in Miami must have a license issued by Miami-Dade County to provide financing.
How Much Can I Borrow?
Rather than using your credit score, auto title loan providers use the car’s value to determine how much money you can borrow. In Florida, you can borrow up to one-third of the value of your vehicle.
You should estimate how much your car is worth so you will have an idea of how much you will borrow. This will help you to negotiate with lenders for the best rate.
Lenders charge fees and interest rates on the loan, which will affect how much you will have to repay.
How to Get a Car Title Loan in Miami
To apply for a car title loan, you need to provide your car title and identification. This includes the following documents:
- Government-approved identification
- Car registration
- Proof of insurance
- Proof of address
- Proof of income
The lender will inspect your vehicle to determine its value and your loan amount. If you apply online, you will need to provide several photos of the vehicle.
Your lender can pay you in cash or transfer the money to your bank account directly. They will take a pre-signed check for the loan amount to cover the repayment when it is due, or you can sign an authorization for them to debit the repayment from your bank account.
How to Choose a Lender
To find the best car title loan in Miami, you should get quotes from various lenders. This will help you find the provider offering the lowest interest rates and fees, highest loan amount, and best customer service. Make sure you understand the terms they offer to avoid being surprised by any fees or charges.
You should be aware that for car title loans in Miami, according to Miami-Dade County, a lender can charge a maximum rate of up to 30% interest per year on the first $2,000 of a loan. This falls to 24% for $2,000-3,000 and 18% on any amount above $3,000.
You must choose a reputable lender. They must display their license and include the license number and business name on any advertising. Their location must match the business address on the license.
Lenders are not permitted to charge prepayment penalties, impose illegal charges, or engage in deceptive advertising. They can not lend more than one-third of the car’s value. They must also pay the borrower any surplus proceeds from disposing of the car within 30 days.
Some lenders process loans in-house, while others act as middlemen for third-party lenders or buy and sell loans. The advantage of using a full-service provider is that they control the application process and can help make sure your loan is approved.
Be sure to research reviews of lenders to find one that offers a good customer experience.
Use Champion Cash Loans for Car Title Loans in Miami, FL
Car title loans offer a fast and efficient way to get cash to cover your short-term expenses. They provide an alternative financing option to banks and credit unions, especially if you have poor credit. You can unlock equity in your car and still drive it around, ensuring you do not miss any work, school, or appointments.
If you are looking for car title loans in Miami, FL, consider using Champion Financial Services. Our expert team members are committed to helping people in the local community meet their financial needs. Contact us today to find out how we can help you.