The title is retained by the money lender in case the borrower can’t pay back the loan
Despite using a vehicle to take out a loan, the borrower can still carry on using the vehicle just as before, if they are based in Queensland. But once the cash loan is repaid the title returns to the owner.
Although this may sound a little like a payday loan or cash advance, because there’s collateral the interest rate will be lower than those unsecured forms of borrowing. As we said already, a car title loan isn’t the cheapest way of borrowing money, but it’s usually going to be more affordable than payday loans and cash advances.
As well as being easy to take out, a drive away loan also offers quick and easy repayment options. The required repayment schedule will be stated upfront, and the payments can be made either in person or online from a bank account or debit card.
Like any form of credit, the borrower should always make sure the cash loan is appropriate for them and they fully understand the terms. Many lenders will ask for a spare set of keys to be handed in with the title, and in some circumstances a tracking system may be fitted to the vehicle. All of this will be made clear in advance though, and don’t be afraid to ask anything you’re not sure about as there’s no such thing as stupid question when it comes to borrowing money.
Paying off your car title loan
A loan of this kind is typically paid off quite quickly. Some lenders may put on a timescale such as 30 days from the date it starts. In this case, if you can’t pay it back in time then you could More hints request to roll it over to a new loan period.
A car title loan can also be offered without a fixed repayment date. Since the money lender holds the car title, they will retain this document until it is convenient for the borrower to pay off the amount that they borrowed.
Of course, it is important to remember the risks of not being able to pay off the loan. If you need the car to travel to work or for any other reason then any delay in getting it back can be frustrating. For most people, it pays to get back their vehicle as soon as possible.
Are there any alternatives?
This isn’t the only way of getting hold of some emergency cash right away. However, it works out as being the smartest for many people in differing situations. The following are some of the other options.
- Credit card: This is arguably the most convenient way of meeting unexpected expenses. The problem is that it may be difficult to pay off afterwards, as interest is added on every month, even if you pay off the minimum amount each time.
- Personal loan: A loan from a bank offers a structured approach to borrowing money and paying it off. The main issue could be that it is often difficult to get it agreed at short notice, while poor credit history will work against you.
- Cutting down on some of your outgoings is always a good idea when you are in financial problems. This might seem impossible to do at first, but you can start off by listing your outgoings and then seeing where you can trim back a little. You might be surprised.
- Earning more money with a temporary job is a fantastic way of clearing up financial difficulties. Obviously, finding a suitable job at short notice isn’t always possible, though.