A title loan is a simple way to receive money based on the amount of money your car is worth, and the application process has gotten easier than ever thanks to online title loans. One common question among potential title loan borrowers is whether a title loan is still an option if they have an older car. Here's what you need to know about title loans for older cars.

Can You Get a Title Loan with an Older Car?

First things first – the answer to this question is yes, you can get a title loan even if your car is old, has quite a few miles on it or both.

There are only a few basic requirements you must meet to get a title loan, which are:

  • You need to be at least 18 years of age due to federal law.
  • You must be the owner of a car.
  • That car must have a lien-free title.

If there is anyone else on the car's title, then they must also be there to get the title loan with you and to authorize it. They would essentially be taking out the loan with you.

Keep in mind that since most title loan regulations are imposed by the states, each state can institute its own rules regarding borrower requirements. Although most states stick to the requirements listed above, there are those that require proof of income and employment before a lender can issue a title loan.

However, there aren't any requirements related to the age of the car.

How Much Money Will You Get with a Title Loan?

This is where the age of your car comes into play when getting a title loan. Even though the age of your car doesn't determine whether you can get a title loan, it does factor in to your car's current market value, and that is what lenders use to decide on the amount they can loan you.

If you have an older car, that also likely means that the vehicle has lost a good amount of its value, unless it's a classic or exotic car. A lower value means that your title loan amount will also be lower.

You can't be 100-percent certain of how much a title loan company will lend you for your car until you go through the title loan process, but you can get an idea by going through the same process they would. Here is how a title loan company will figure out what it can lend:

  1. It will enter details about the vehicle, including the model year, the make and model, the body style and the number of miles, into a vehicle value guide.
  2. It will inspect your car to assess the current condition of the vehicle.
  3. It will check the value listed for that condition in the vehicle value guide listing for your car, setting that as the car's current market value.
  4. It will set your maximum loan amount based on that value, with lenders typically offering loans for up to 30 to 50 percent of what a car is worth. This gives them some protection if the borrower ends up defaulting.

You could check a vehicle value guide and inspect your car yourself to get an idea for its value, and then estimate on your own what you could get from a title loan company. However, a simpler method is going through an online application for a title loan, as you'll also get an estimate that way.

Some states have set up maximum amount that can be issued for title loans, and even if your car is worth much more, you'll only be able to borrow up to that maximum amount.

Another thing to consider when you have an older car is that there are a select few states with minimum title loan amounts. If your older car's value is low enough that the lender isn't willing to issue a loan for at least the minimum amount, then you won't be able to get a title loan in that state.

Accurately Assessing the Value of Older Cars

The only other potential complication when getting a title loan with an older car is that vehicle value guides only go back so far. If your car is older than the value guide's range, then the lender may have a tough time figuring out what your car is worth. There are resources available to see what older cars are worth, which means it's all a matter of the lender being able to locate a reliable figure on your car's value.

Getting a title loan with an older car typically won't be a problem, at least when it comes to getting approved on the loan. Your car's age will affect how much you can borrower, and if you need a certain amount, you should make sure that your car has enough value left for you to get the loan you need.

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