How to Get a Loan Against a Car Pink Slip
If you have a pink slip chances are your car is paid off and you have a car title issued in California. Once your car is paid off you can get a loan from a bank but they will take your pink slip as collateral. To get a loan you must speak to a sales associate. They will be able to provide you with all of the necessary steps to get your loan. Once the loan is made your car will once again be pledged as collateral.
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Instructions
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Visit a branch in your area. Speak to a sales associate about getting a loan. He will take an application, which includes all of your personal information, such as name, address, Social Security number, date of birth and employment. There is a place at the bottom of the application for you to list five or six personal references. You will need recent pay stubs or tax returns to verify your income. The sales associate will need your pink slip. Bring the car with you so that pictures can be taken and stored in your file. Verification of your auto insurance will be needed. You will need your driver's license and a phone bill in your name. The rate of interest can vary from 12 tpercent o 17 percent.
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Confirm that your automobile meets certain requirements and guideline. Some lenders will require that the year of your auto be 1999 or newer. There could be a mileage requirement such as 150,000 miles or less. The representative will check the value of your auto to see if it is in range. The value of your automobile will determine how much money you can borrow. The representative will look up the value of your car based on the various accessories.
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Wait for the representative to get a credit report. It will review your credit file to see your credit history, which helps determine your interest rate. If you have late payments you will most likely receive a higher rate of interest and it will cost you more money in finance charges. The entire process should take approximately 24 to 48 hours.
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Sign the loan documents. The representative will prepare the loan documents and you will be required to sign them. Make sure you understand all of the terms and agreements. The payments and terms should be to your satisfaction. Hand the title over the representative. It will be sent to the department of motor vehicle and a lien will be filed. Any documents you bring will be copies and returned to you. When the loan is paid off, the lien will be removed from the title.
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Tips & Warnings
If you want an auto loan, limit your search to standard banks. Some of the auto loan companies such as 1-800-Loan-Mart can charge annual percentage rates of 9 percent per month. This is an annual percentage rate of 108 percent. You have to listen to how they quote the rate. They quote is monthly instead of yearly.
