In general, you can borrow up to $25,000 with a title loan. However, the amount you can actually get depends heavily on the value of your vehicle. Let me explain. 🤓
Title loan lenders typically lend 25% to 50% of a vehicle’s value. For example, if your vehicle is worth $5,000, you can expect to receive at least $1,250 to $2,500.
The value of your vehicle is determined primarily by its:
- Year, make, and model
- Condition (engine, exterior, interior, etc.)
While I’m a fan of the Fast & Furious franchise 🏎️💨😃, title lenders are not. So, it’s important to note that aftermarket parts such as rims, sound systems, body kits, and other cool customizations are not considered when assessing the value of your vehicle.
If you want a real-life estimate of how much you can get with a title loan, follow these steps:
- Visit Kelley Blue Book (KBB) to see how much your car is worth and make sure to be as accurate as possible when entering the details of your vehicle.
- Once you’ve completed the process, KBB will present you with a trade-in value and a private-party value. Write down the trade-in value (not the trade-in range).
- Multiply your trade-in value by 0.25 and consider that amount the minimum you’ll get from a title loan. For example, if your trade-in value is $7,500, you can expect a minimum of $1,875 using the following equation: 7500 x 0.25 = 1875.
- Multiply your trade-in value by 0.5 and consider that amount the maximum you can expect to receive from a title loan. Using the same example from above, your maximum would be $3,750 using the following equation: 7500 x 0.5 = 3750.
If the estimate you get does not meet your needs, don’t worry. Some lenders will offer you higher amounts based on your income and other factors. However, I'd advise you not to borrow more than you need — title loans are expensive.