While auto loans and car title loans might sound similar, they are used for different purposes. An auto loan enables shoppers to finance new vehicle purchases. On the other hand, a car title loan can be used for any purchase. In today’s Quick Loans blog, we explain how these loans differ, and when you should consider each one.
What Is an Auto Loan?
An auto loan is where a car buyer borrows money to finance a vehicle. When you want to buy a car, truck, or SUV, you may not qualify for financing if you have bad (or no) credit. This disqualification can be frustrating, and Quick Loans is here to help. You can get your auto financing approved with us before you look for a car.
When to Consider an Auto Loan
When you know which car you want to buy, and you can’t pay for it all at once, consider an auto loan. Keep in mind that Quick Loans usually requires that you have at least 10% to 20% down payment. The borrower repays an auto finance loan over time (typically 12 to 48 months) with a fixed number of scheduled payments. You can repay these loans at any time without prepayment charges. If you have more questions about auto finance loans, contact our team today.
What Is a Car Title Loan?
Usually, car title loans are short-term transactions that ensue when vehicle owners have to borrow money. At Quick Loans, car owners will apply for title loans online, over the phone, or at our office in Nixa. Then we’ll take possession of your car title as collateral. We arrange it so that you can make an easy monthly or bi-weekly payment that suits your budget and cash flow.
Quick Loans Quick Tip: We, as the lender, can take possession of your car if you do not pay your car title loan according to your contract terms.
When to Consider a Car Title Loan
The appeal of a car title loan is that you can use it at any time. When you need extra cash, and you believe you can pay it all back, consider this type of loan. By utilizing your car title, you establish a credit line with Quick Loans. If you have medical bills or an unexpected home repair, your credit line is ready for you to use. You also don’t have to stress about instantly paying back your car loan, so you can calmly maintain your monthly budget.
Apply for a Title Loan in Nixa, MO
Quick Loans has been a trusted loan lender for two decades. Whether it’s a title loan