The qualifying process of car title loans consists of lenders approving the loan amount based upon the value of the vehicle. To apply for a title loan, an applicant should fulfill the basic criteria, mentioned below:
The candidate should furnish proof of residency. Applicants should produce details regarding his/her income. The title to the car will also be needed to begin the application process.
Once the application has been filled out, the lender will need to appraise the car. The lender will appraise your vehicle.
Car Inspection
When a lender inspects your car to determine its fair market value they look for the following:
Exterior Condition
A lender will examine the paint condition of your car. They will review if the paint is faded or worn. Does the paint have chips and show visible signs of wear and tear? They will also check for deep scratches, and may check for dents. The condition of the doors and alignment of the doors is also an inspection variable.
Interior Condition
The interior inspection will entail determining the condition of the mats and carpet. Are there stains and rips in the cloth or leather? The lender may also check the odometer, the radio, air conditioning, lights, and gas gauge for functionality.
Mechanical Soundness
A mechanical inspection will involve starting the car and listening to the engine. The lender may check for whistling, knocking, and ticking sounds. Checking the front and back for leaking fluids is also part of the mechanical soundness inspection for some lenders.
Once the Inspection, verification of residency, and income is completed, the lender will make their assessment and approval decision.