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How much can I get on a title loan?
The answer isn't as cut and dry as you might think.
How much can I get for a title loan?
How much you can borrow depends on three factors:
- Your lender
- Your province or territory
- The value of your vehicle
Every lender has their own minimum and maximum loan amount when it comes to title loans. They can start as low as $100 and run as high as 75% of your car’s value. However, it’s more common to see car title loans from $1,000 to $10,000.
Province and territory restrictions on title loan
Title loans are not regulated by the federal government. Some provinces and territories have limits as to how much you can borrow, which can affect the minimum and maximum amount your lender offers. Other regulations may include the requirement for the lender to be registered or have a license to operate. Make sure you know the rules of the province or territory you’re in.
The main factor that affects how much you’re able to borrow is the value of your vehicle. Most title loan providers allow you to borrow up to a percentage of your vehicle’s resale value, known as the loan-to-value ratio (LTV). You can typically get an LTV of 50% to 85%, though some lenders go as low as 20% and as high as 120%. Not all lenders advertise the LTVs they offer, so you might need to reach out.
This percentage is based on your vehicle’s current resale value, not the amount you originally paid for it. You can get a rough estimate of the resale value by using an online service to get an idea of how much you might be eligible to borrow.
When you take out your loan, the lender either inspects the vehicle itself or has you take it to an approved inspection center for an official valuation.
Compare auto title loans
How much does a title loan cost?
How much your title loan costs also depends on your lender and province or territory. With single-payment title loans, which are usually due in full within 30 days, you often pay a fixed fee rather than interest. With installment title loans — which you typically repay over 3 months to 3 years — you pay interest plus fees.
The easiest way to assess the loan’s cost is by looking at its APR, which is an expression of how much you’d pay in interest and fees over one year as a percentage. Title loan APRs are typically around 300% or higher for single-payment loans. Installment loans might have lower APRs, but with the long loan terms, you could actually end up paying more.
Title loan alternatives
Title loans are a high-cost type of financing and come with several risks, including losing your car or getting trapped in a cycle of debt. If you often need small-dollar loans, consider looking into local resources that can help cut back on basic expenses.
Alternatives between $100 and $500
- Payday loans. These small-dollar loans work a lot like a single-payment title loan but don’t require collateral. However, they tend to come with APRs that can easily top 400%.
- Credit card cash advance. If you already have a credit card and need money today, withdrawing funds using a credit card gives you money as soon as you can find an ATM. And it typically comes with a lower APR than a title loan, but beware of your card’s cash advance fee.
Alternatives between $500 and $10,000
- Installment loans. These loans are similar to title loans in that they have longer repayment terms, but you don’t have to put your car up for collateral. But like payday loans, these tend to be slightly more expensive than title loans.
- Friends and family. Though it can be difficult to ask, your friends and family might be willing to help you out. You can even find services to draw up a legally binding contract.
While your lender and province or territory set limits to how much you can borrow with a title loan, the value of your vehicle is really what determines what you’re eligible for. Read our comprehensive guide to learn more about how title loans work and make sure you make a decision that’s right for your financial situation.
Frequently asked questions
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