Auto Equity Loans: 14 Frequently Asked Questions

author-img By Mashum Mollah 5 Mins Read 11 September 2023

Auto Equity Loans

If you’re looking for an instant cash loan to meet an unexpected expense, here are 14 frequently asked questions you’ll want answers that will help you understand the concept of auto equity loans, also known as title loans in Sacramento, and pink slip loans.

What is an auto equity loan?

An auto equity loan is a cash loan given by a lender by taking the title of your vehicle as collateral. Automobile title loans are a quick and easy way to get instant cash to meet an unexpected expense.

Provided you take the time to understand the terms governing an automobile cash loan, taking out this type of loan is a fast and easy way to get through a challenging life situation.

Will the lending company also take my vehicle for the duration of the loan?

No, the lender will only take the certificate of your car title along with some other documents; you can keep driving your vehicle and repay the loan as due.

How much auto title loan can I get?

This depends on certain factors, such as the value of your vehicle, your ability to repay the loan, and state regulations. You can get anywhere between $500 and $25,000 in fast title loans.

How does an auto equity lender determine the value of a vehicle?

A professional will determine the wholesale value of your car, which is calculated based on the make, model, version, age and condition of your car and its current mileage. The amount of loan will be based on the value of your car as determined by the lender.

What documents are needed to get a car title loan fast and easy?

Generally, the following documents are required to get a cash loan: a valid government-issued photo ID, the clear title of your vehicle, proof of income, and proof of address. When you visit the lender’s local office to apply for a loan, you’ll be asked to fill up a form and submit these documents. You’ll also need to take along the car or motorcycle or another vehicle you wish to use as collateral.

What are the interest rate and fees charged for title-secured loans?

This varies from lender to lender; it is important to do your research to find a competitive rate and borrower-friendly repayment terms.

When will the lending company return the certificate of title?

The lender will return the title document once the loan is fully repaid along with interest. Remember that your repayment installments are generally based on your income and most lenders will charge the interest first and the principal later. With some research, you may be able to find a lender that includes both the principal and the interest right from the first installment itself.

How fast can I get an auto title loan?

You can get approval for an auto equity loan in less than an hour.

Can I use one title loan to pay off an existing one?

Yes, you can. Check with the lender and understand the applicable terms and conditions.

What happens if I default on repayment?

Based on the repayment terms in the loan agreement, defaulting on a title loan can result in repossession (the lender claiming ownership to your car). Before signing on the dotted line, check and understand all the terms and conditions governing the loan, including those relating to payment default.

Can I prepay my auto title loan?

Yes, you can. Remember to check with your lender if they charge any penalties on prepayment.

Does a person’s credit score affect their ability to get a title loan?

With some lenders it does, with others it does not. Most private lenders will give you a title loan regardless of your credit score. The title loan is an alternate, easier way for people with credit problems to get cash when they need it most—so your credit score is not taken into account. Your loan is secured by your car’s title.

What if I don’t have an income at the time of taking out a title loan?

Some lenders would still lend to an individual whether or not they are employed or have an income at the time of applying for a title loan. This means that retired individuals and those receiving social security/pension can also apply for such a loan.

Can I take an auto equity loan against a vehicle that’s jointly owned by me and my partner?

Yes, you can. The loan document will have names of both partners/spouses.

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Mashum Mollah

Mashum Mollah is an entrepreneur, founder and CEO at Viacon, a digital marketing agency that drive visibility, engagement, and proven results. He blogs at

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