There’s nothing more exhilarating than hitting the open road on the back of a motorcycle. Riding a motorcycle is more than just a hobby–it’s a passion for many people. However, if you’re struggling financially, you may be thinking about selling your beloved motorcycle for the cash you need to make ends meet. But there is another way to get fast cash without sacrificing your favorite possession: taking out a motorcycle title loan.
Motorcycle title loans are secured loans, which means they are supported by collateral. If you need fast cash, you can use your motorcycle as collateral to borrow money with a title loan. You won’t have to say goodbye to your bike–you can continue to ride it while you make payments. The lender will either put a lien on it or hold onto the title until the loan has been repaid. Once your loan has been repaid, the lender will remove the lien or return the title.
Taking out a motorcycle title loan might help you secure the cash you need to cover your unexpected expenses. Before you apply, it’s important to learn the ins and outs of this type of loan. Here’s everything you should know about motorcycle title loans:
Who is Eligible for a Motorcycle Title Loan?
The first thing you need to do is determine if you are eligible for a motorcycle title loan. You may be eligible if you meet these conditions:
- You are at least 18 years old.
- You are willing to consent to a credit check.
- You own or share ownership of a motorcycle.
- You have equity in your motorcycle.
- You have a reliable source of income.
Eligibility requirements can vary by lender, so it’s best to contact your title loan company to find out if you qualify.
What Will You Need to Apply for Motorcycle Title Loans?
If you are eligible for a motorcycle title loan, you may want to start gathering the documents you will need to submit during the application process. Be prepared to provide:
- Your driver’s license or another type of government-issued ID
- The title to your vehicle
- Proof of income (examples include recent tax returns, bank statements, or pay stubs)
- Proof of residence (examples include your driver’s license, lease agreement, mortgage, or utility bills)
- Proof of auto insurance
Your title is used as collateral, so it’s one of the most important documents that you will need to submit. If you can’t find your title, let your loan officer know right away. Your loan officer can assist you with the process of obtaining a new title so you can complete your application as soon as possible.
Some lenders may ask for additional documentation to process your motorcycle title loan application. Check with your loan officer to ensure you submit everything that is required on time.
How Much Can You Borrow From Motorcycle Loans?
With 1-800-Cartitle.com, the maximum amount you can borrow from a motorcycle loan is $4,000. However, this does not mean that you will be approved to borrow $4,000. The amount you are approved to borrow will vary depending on:
- Your income: Your lender will evaluate your income to determine how much you can comfortably afford to repay. This will impact how much they allow you to borrow if you are approved.
- The value of your motorcycle: Your motorcycle is used as collateral, so the lender will need to know how much it is worth before determining how much you can borrow. Title loan companies will consider the motorcycle’s make, model, year, condition, and mileage when calculating its value.
- Your equity in your motorcycle: You cannot borrow more than the value of your equity in your motorcycle. To calculate your equity, subtract the amount you owe on your motorcycle from your motorcycle’s resale value. For example, if your motorcycle is worth $10,000 and you owe $2,000 on it, you have $8,000 of equity.
Can You Add A Co-Signer to Your Motorcycle Title Loan?
If you don’t qualify for a title loan on your own, you may want to consider adding a co-signer to your application.
A co-signer is an individual such as a friend or family member who agrees to pay off your loan in the event you fail to do so. Adding a co-signer to your application can improve your chances of getting approved, especially if the co-signer has good credit.
Even if you qualify on your own, adding a co-signer might help you secure a better interest rate, which will save you money over the course of the loan.
Your co-signer will need to consent to a credit check and provide their ID along with proof of residence and proof of income. You won’t see the information your co-signer submits to the title loan company and they won’t see the information you submit. Everything is kept confidential.
What Are the Benefits of Motorcycle Title Loans?
Motorcycle title loans offer several benefits, including:
- Fast processing times. Title loans are usually processed faster than traditional personal loans, which means you can get the cash you need as soon as possible.
- Easy application process. You won’t need to jump through hoops to submit a motorcycle title loan application. The entire application process is simple and straightforward. In fact, you can complete the entire process without ever stepping foot inside a lender’s office.
- You can choose how to spend the money. Your lender will not tell you what you can and cannot use the money for if you are approved for a title loan, so long as it is used for legal purposes. It’s your money, so you can spend it your way.
- No prepayment penalties. You won’t be penalized for paying off your loan earlier than expected.
- Keep riding your bike. You won’t have to sacrifice your motorcycle to get the cash you need. If you are approved for a title loan, you can continue to ride your motorcycle as you normally would.
These are some of the countless reasons why so many people rely on motorcycle title loans to get fast cash.
How to Apply for a Motorcycle Title Loan
Now you should have information to decide if a motorcycle title loan is right for you. Follow these steps to apply for a motorcycle title loan from 1(800)CAR-TITLE®:
- Get in touch with a loan officer. Call 1-800-227-8485 to speak directly to a loan officer. You can also submit your information using the form on our website.
- Get a free loan estimate*. You can get a free loan estimate in a matter of minutes just by providing your loan officer with some basic information about your motorcycle. Review the details of this loan estimate, including the amount you are approved for and the interest rate, with your loan officer.
- Finalize your loan. If you are satisfied with your loan estimate, finalize your loan by signing and submitting the required documentation. Your loan officer can guide you through this step to ensure you know what you need to sign and submit.
- Collect your cash. Because title loans are processed quickly, your cash will be available to you shortly after your application is approved. You can pick up your cash in person or have it sent to you via check or wire transfer.
That’s all you need to do to use your motorcycle to get the cash you need to make ends meet.
*Loan approval is subject to meeting the lender’s credit criteria, which include the demonstration of ability to repay the loan. Not all applications will be approved.