Some borrowers do not care how auto title loans companies compute for car value as part of the considerations for loan approval. But some borrowers may want to know so they have an idea how much money they can get and how much problems or financial issues it will help solve. In order to arrive at a determined amount, loan companies are looking at various factors when they make an assessment of your car. Here are the factors involved:
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- Brand. Porsche may be of high value but title loan companies will not touch it with a ten foot pole. The reason of course is that there might be lots of issues involved. In the first place, if the borrower can afford this kind of car, then he or she must have other sources of credit. Besides, the resale value might not be in their policy when it comes to loanable amount.
- Make and Model. There are certain years and car editions where the automobile is highly efficient and widely accepted by many car enthusiasts. For example, in many countries, Galant Sigmas and Mitsubishi Lancer 1979 model are still sought after.
- Vehicle History. Some car owners are not religious when it comes to plotting car history in terms of maintenance; they think that this is not important until they went to apply for an auto title loan. The entries will help loan companies determine car value, so the more they see entries of car maintenance activities like change oil, tires, batteries, and among others, the better. A dent and scratch operation might be a plus or negative factor; if it is an accident due to your own recklessness, then you will bear the brunt of it.
- Age and Condition. The older the car, the lesser value it will fetch. The more that it is used in the road, another minus factor in terms of car valuation. All the more it become worthless when upon road testing, the car choked down, or did not start, or encountered several motor problems along the way.
- Trade in Value. Car manufacturers have their own assessed value in terms of trade in amount. From time to time, car makers will implement promo programs where older models of their cars are traded in for newer models and the trade in amount is deducted from the cost of new car.
- Environment and Location. We all know that if the area is always in dangerous situation, car resale value is really low. Another situation is that vehicles ideal for cold weather will not fetch good resale value in areas where rough and rugged terrain dominates the environment.
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