If you own a classic car and are in need of some fast cash, you may want to explore taking out a car registration loan on the vehicle. But wait! Your classic car isn’t registered? Let’s address that first and then we’ll figure out how to take a quick loan out on it.
If you want a car registration loan on your classic vehicle, obviously you need to register the vehicle! Registering your classic car can often net you lower, or even waived, registration fees. To register a classic car, first check your state’s laws by visiting either the DMV or Secretary of State websites. You may also find information that pertains to you here: http://www.dmv.org/car-registration.php. Once you find out what your state requires, you’ll typically need a certificate of title or certificate of origin from the manufacturer, a bill of sale, a builder’s affidavit if you have rebuilt the vehicle, a completed application for the vehicle’s identification number, and an inspector’s report that certifies the vehicle is safe to drive, and proof of insurance. Although registering a classic vehicle is more involved than registering a newer one, once it is finished you can use that title to secure a loan.
Once you have the title to your classic vehicle, all you need to do if search for car registration lenders in your area. A simple click of a mouse should bring up a bevy of lenders online, and make sure you choose a reputable one by reviewing borrowers’ comments or checking with the Better Business Bureau by visiting https://www.bbb.org/.
Often, you can apply for a car registration loan online and save even more in the process, which usually takes only about half an hour in total! You need to go into the lender eventually so that he or she can assess your vehicle and determine its value in order to come up with an amount to loan you.
The lender will typically offer you a loan that equals about half the vehicle’s value. If you have a photo ID, proof of income (don’t panic if you are jobless; lenders must consider disability, pension, and/or unemployment payments as income), you should be on your way with your money in no time. The good news is that lenders will let borrowers keep the vehicle and drive while they are paying off the loan, but the bad news is that if you don’t make your payments the lender is authorized to repossess your vehicle and sell it to recoup his or her money. That could put you in a worse situation than the issue that drove you to take out the loan, so if you remember only one thing, negotiate payments with the lender so that you can actually make them! Interest rates can be high—from 36% to more than 100%—so don’t be tempted to take out more than you can pay back, because the interest rates will drive your payments up.