Selling Your Car Vs. Getting An Auto Title Loan

If you are short on cash, then you have a number of options. You can sell your car or get a title loan. Both of these options will allow you to quickly get the funding that you need. However, it is important to weigh the pros and cons of each option.

Pros of Selling Your Car

Quickly get the Funds That You Need - It can be challenging to sell your car. However, once you find someone to buy your car, you can quickly get the funds that you need. You do not have to worry about waiting weeks to get your money.

No Approval Process - If you were to apply for funding, then you will have to go through an approval process. The requirements can depend on the lender that you choose. However, you will not have to worry about going through an approval process. All you have to do is find someone who is willing to buy your car.

Save Money - Selling your car not only allows you to make money but you can also save money. You will not have to worry about paying for gas, maintenance or car insurance. You can put the money that you save by getting rid of your car towards paying off of your debt.

No Debt - If you apply for funding, then you will end up in debt. Being in debt creates a burden for you regardless of how small it is. You will not have to worry about going into debt if you sell your car.

Cons of Selling Your Car

Alternative Means of Transportation - If you only have one car, then you will have to find an alternative way to get around. Many people live in cities where they are fortunate enough to be able to take the bus or the train. However, many places in this country do not have reliable public transportation. That is why it can be hard to get around if you sell your car.

You May Not Get What the Car is Worth - If you have had your vehicle for a few years, then you probably will not get the amount that the vehicle is really worth. A car loses its value as soon as it is driven off of the lot.

It Can Take Time to Sell Your Car - Selling your car can be challenging. Not only do you have to find someone to buy your car but you also have to find someone who is willing to pay a fair price for it. This can be incredibly stressful and time-consuming.

Pros of Title Loans

Anyone can Qualify - It is fairly easy for you to get a title loan. If you have a car and source of income, then the lender will likely approve you. There is no need for a credit check.

Quick Cash - You can get your funds after you are approved. In many cases, people are able to get their funds in just one day.

You Can Keep Your Car - The lender will have the title to your car until you pay off the loan. However, you can still drive it. You will not have to worry about making arrangements to get back and forth.

Cons of Title Loans

High Interest Rates - The interest rates on title loans can be extremely high. In fact, the interest rates are often in the double digits. This means that you will probably pay back a lot more than what you borrow.

You Could Lose Your Car - The lender will take your car if you go a certain amount of time without making a payment. They can sell your car in order to make up for the remaining balance. It is also important to note that you may still owe money if the amount the car is sold for is less than what you owe.