Vehicle pawn shops in Richmond, as well as in most states in the country, are an easy and quick place to go for short term cash. These businesses specialize in what is called a car title loan or just a title loan. These loans require that the car owner leave the title for the auto with the lender in order to receive a short term loan
Loans of this nature are very different from the typical consumer loans offered by banks. They do not consider the credit worthiness of the borrower. The only criteria they use for the loan is the value of the car. Because of this, these loans tend to be very expensive and can run anywhere from thirty six to almost one hundred percent annual interest rates.
As you might guess, many of the people who take out these types of vehicle secured loans are from a segment of our society that probably could not get a regular loan at a bank. This means that the loans these pawn shops make are more likely to default than other types of loans and therefore justifies the higher interest rates.
Proponents of these types of loans will tell you that the convenience of this type of financial product justifies the higher cost. You can expect to walk in to a loan shop and walk back out with your money in as little as 15 minutes. Loans are usually made for small amounts and are dispersed as cash.
How much you can borrow is determined primarily by the value of your automobile based on the Kelly Blue Book. The lender will offer about half of what the wholesale value of the auto will bring at an auction. The borrower needs to be able to provide a clear title to the car and either bring in the car to be looked at or have pictures of the car to show that it is in reasonably good condition.
Unfortunately, interest rates are very high on these types of loans, often ranging anywhere from thirty six percent on up to one hundred percent or more. For this reason, the loans are very short term and are often for just one month.
The normal terms and conditions of a title loan are that the client must pay the interest that accumulates each month as a minimum payment. If the customer is able to pay of the loan in its entirety in the allotted amount of time they are welcome to apply for and receive another loan on the same vehicle.
Repossession of an automobile is considered a last gasp resolution to problem loans where the borrower either can't or won't pay back the loan. Vehicle pawn shops in Richmond will attempt to take the car and sell it at an auction house or to a car dealer. Neither party usually wins in this type of situation.
Loans of this nature are very different from the typical consumer loans offered by banks. They do not consider the credit worthiness of the borrower. The only criteria they use for the loan is the value of the car. Because of this, these loans tend to be very expensive and can run anywhere from thirty six to almost one hundred percent annual interest rates.
As you might guess, many of the people who take out these types of vehicle secured loans are from a segment of our society that probably could not get a regular loan at a bank. This means that the loans these pawn shops make are more likely to default than other types of loans and therefore justifies the higher interest rates.
Proponents of these types of loans will tell you that the convenience of this type of financial product justifies the higher cost. You can expect to walk in to a loan shop and walk back out with your money in as little as 15 minutes. Loans are usually made for small amounts and are dispersed as cash.
How much you can borrow is determined primarily by the value of your automobile based on the Kelly Blue Book. The lender will offer about half of what the wholesale value of the auto will bring at an auction. The borrower needs to be able to provide a clear title to the car and either bring in the car to be looked at or have pictures of the car to show that it is in reasonably good condition.
Unfortunately, interest rates are very high on these types of loans, often ranging anywhere from thirty six percent on up to one hundred percent or more. For this reason, the loans are very short term and are often for just one month.
The normal terms and conditions of a title loan are that the client must pay the interest that accumulates each month as a minimum payment. If the customer is able to pay of the loan in its entirety in the allotted amount of time they are welcome to apply for and receive another loan on the same vehicle.
Repossession of an automobile is considered a last gasp resolution to problem loans where the borrower either can't or won't pay back the loan. Vehicle pawn shops in Richmond will attempt to take the car and sell it at an auction house or to a car dealer. Neither party usually wins in this type of situation.
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