When you’re short on cash, a title loan can be an appealing option. Unfortunately, these short-term loans often come with high APRs and fees, and sometimes it’s hard to keep up with the payments. If you can’t make your payments, you may end up faced with rolling the balance into a new loan or, worse, losing your car. If this is your situation, a title loan buyout may be a good option.
- What is a title loan buyout? A title loan buyout is a type of refinancing, in which a new lender pays the remaining balance on a borrower’s current title loan. The old loan is then replaced with a new one, ideally with better terms and lower payments. As a borrower, you can save money with a title loan buyout by paying less interest.
- How does a title loan buyout work? The process begins when you find a lender willing to pay off your existing title loan with a new loan that meets your needs. Once you’ve established the terms of the new contract, the buyout works like this:
- You sign the contract with the new lender.
- The new lender pays the full amount owed to the original loan company.
- The new lender becomes your car title’s lienholder.
- You pay off the new loan, according to the agreed-upon terms.
- Once the loan is satisfied, you own the title to your car again.
- What are the benefits of a buyout? With a title loan buyout, you can get an interest rate that’s lower than the one on your original loan, so you’ll pay less interest over the life of the loan. You may also get a longer time period over which to pay off the loan, which can help you better manage your payments. The most important benefit of a title loan buyout is that it allows you to keep your car and avoid repossession.
- Is a title loan buyout right for you? If you need help with your title loan, a buyout may be the right option for you. Shop around, to make sure you’re getting the best interest rate and most favorable terms before you sign a contract. Read your contract carefully; some lenders charge exorbitant fees. Make sure you can handle the terms of the contract, so that you don’t risk losing your car by defaulting on the loan.
When you’re looking for a fair deal on a loan, VIP Title Loans is here for you. We understand that getting the best title loan interest rate is important to you, and we value your dollar. That’s why we offer competitive, manageable rates, keeping our fees lower than most other companies. We want to earn your business by saving you money, and with locations in Arlington, Dallas, Garland, Lewisville/Denton, Mid Cities/N.E. Ft. Worth, and Richardson, we’re easy to find. Call us at 214-819-9491 or 682-325-4202, or contact us for more information.