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A Arizona title loans is a specific liability, i.e. one that is incurred to finance a specific purpose, in this specific case of purchasing a vehicle. The funds obtained in this way can be used to buy not only a car, but also a motorcycle, scooter, quad bike, motorhome, trailer or even a tractor. Both a natural person and a company can apply for such a arizona title loans.
The bank is not the only place where you can apply for a car title loan. You can also apply for it at authorized car dealerships. It happens that a loan offered by a dealer is cheaper than at a bank. In addition , the price can be negotiated with the car dealer, which is not possible in a bank.
The question is, which arizona title loans to choose? The car title loan calculator and the current car title loan ranking will help you make a decision – tools of this type can be found on the Internet.
How to get a arizona title loans?
Apply for a loan. In many cases, you can do it without leaving your home, via the Internet. Supporters of traditional solutions can also submit an application during a conversation with a consultant or go to the facility and submit an instruction in person.
You will need documents identifying the borrower and the car’s documents. It is a car insurance for which we want to take out a loan (OC and AC). In general, banks also require the assignment of rights under an insurance policy to provide additional security for the loan.
Once your car title loan application has been processed, the bank will inform you about the credit decision. If it is positive, you only need to sign a loan agreement. Before signing, read it carefully. Check that the data is correct and that the conditions match those previously set.
What are the types of car title loans?
Banks offer several types of car title loans, which allows customers to choose a product that meets their needs in the situation in which they find themselves.
The first is a standard car title loan, which is characterized by the fact that you have to pay the principal and interest installments every month for the period specified in the contract. It is the equivalent of a cash loan. In the case of a standard car title loan, an own contribution is usually required, the amount of which is determined individually in each case. The repayment period for such a loan is from several months to several years.
The next type is a one-time loan, i.e. 50/50 or 60/40 loan. It requires the borrower to have own funds, which should correspond to 50 or 60% of the value of the car. Its biggest advantage is that it does not bear interest. There is only one installment in the repayment schedule of the single-installment loan – the borrower is obliged to pay the remaining 50 or 40% within the time limit specified in the contract. This type of loan is offered by car banks.
Another type is balloon credit . It is granted for a short period of 24 to 60 months. The advantage in his case is that the credited car can be replaced even after 3 years. The balloon loan is divided into three parts. At the beginning, you pay your own contribution (approx. 10% of the vehicle value). The remaining amount is divided into installments, but all of them are equal, except for the last one, which is the largest and ranges from a dozen to even several dozen percent of the car’s value. This is a good solution for those who like to replace the car from time to time, because they do not have to pay off the last “balloon” installment, but can return the car and replace it with a new one.
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