Your Complete Guide to Auto Title Loans in 2022


An auto title loan can often be a good option for those who quickly need to get cash to take care of bill payments, emergencies, or the management of debt. These are small, secured loans that make use of an individual’s vehicle as collateral. They are short-term loans that are typically given out for anywhere from 15 to 30 days.

There are some key things that anyone should know before seeking out an auto title loan. The following information has been put together for those interested in finding out about title loan companies open on Sunday or who simply want more information about the topic in general. This is a complete guide to auto title loans in 2022.

What Is Required to Get an Auto Title Loan?

Individuals who want to take advantage of the benefits of an auto title loan need to meet one of two conditions. It is necessary to either own a vehicle outright or to have equity in it. Auto title loans range in amount from $100 up to as much as $500. The amount of the loan will range from 25 to 50 percent of the value of the vehicle.

Four Key Points to Understand Before Seeking an Auto Title Loan

1. Understand the Interest Rates

 It is important to understand the interest rates involved with an auto title loan before deciding on getting one. The average APR for an auto title loan is 300 percent. It is common for borrowers to choose to roll the debt over if unable to pay off the loan in full after a month.

2. The Loan Value Is Based on the Vehicle’s Appraisal Value

The value of an auto title loan is based on the vehicle’s value as appraised by the lender. As previously stated, the loan amount offered will generally range from 25 to 50 percent of that value.

If the vehicle is not owned in full by the borrower, some lending companies will choose to lower the vehicle’s value. This can also be the case if the borrower has other outstanding loans. Insurance is also required by some lenders.

3. Auto Title Loans Do Not Involve the Borrower’s Credit Score

Credit score does not play a role in auto title loans. This is because a vehicle is being put up as collateral for repayment of the loan. Because of this, auto title loans can be a good option for those who might not be able to get other types of loans due to their credit score.

4. Understand That Repayment Failure Can Lead to Vehicle Repossession

A fourth key point to understand is the fact that failure to repay an auto title loan can lead to vehicle repossession. The lender has the right to have the vehicle towed away. It can also be driven away if giving the lender a spare set of keys was a part of the requirements for getting the loan.

Required Documentation for Obtaining an Auto Title Loan

To get an auto title loan, a borrower can expect to have to provide the lender with documentation that includes:

  • The original title for the vehicle that proves the borrower is the sole owner
  • Current vehicle registration
  • Recent pay stub
  • Proof of insurance
  • Copies of the vehicle’s keys
  • Two valid references
  • A government-issued form of ID that shows the same name as the vehicle’s title
  • Proof of residency – Utility bill or other requested documentation

Final Points About Getting an Auto Loan in 2022

Getting an auto title loan can be a good option for many borrowers who quickly need to get ahold of needed cash. Those who are looking for title loan companies open on Sunday or who need an option that does not involve their credit score often take advantage of the benefits of an auto title loan.

The best borrowing candidates for auto title loans are those who already own their vehicle outright. Anyone who chooses this option must remember the high potential costs that can be involved with these loans if they fail to pay them off promptly. It is also important to remember the possibility of repossession on vehicles when the loan is not repaid.

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