Q. What is a title loan?
A. A title loan is like a pawn. You are using your vehicle title as your guarantee that you will pay the money you borrow. Unlike an item that you may take to a pawn shop the titled property is refistered with a goverment registrar in your name so you can prove that you have the right to take a loan against it.
Q. How much can I borrow?
A. You can borrow up to 50% of the wholesale value of your vehicle. This site can give you an idea of what we will lend, www.vmrintl.com. We understand that your vehicle is precious to you but ultimately we lend on what it is worth to us.
Q. Can I keep driving my car if I take a title loan against it?
A. USUALLY. If you have acceptable insurance coverage and adequate address verification. Come in and see us for further details.
Q. Can I get a loan against other types of vehicles?
A. Yes we will loan against any type of vehicle that has a registered title but we retain the vehicle until the loan is paid off. The reason we do this is that motorcycles and boats are more easily damaged or destroyed, much easier to hide, can be used without being insured and can be sold to unsuspecting third parties who rarely check for liens on these types of used vehicles.
Q. What is a lien?
A. A lien is like a mortgage. It is a claim against the vehicle that is registered with the government registry. A lien is always paid first by insurance companies in the event that the vehicle is stolen or destroyed. Any prudent buyer will check for a lien against a vehicle before they buy it, which will be paid first with the balance of the sale price going to the owner.
Q. What happens if I don't pay my debt?
A. You will forfeit your vehicle. Sterling Title Loans will work with you to make sure this does not happen. As long as you keep in contact with us we can usually work out a solution for you. If you don't call in, don't answer our calls and generally avoid dealing with your debt we have no other choice but to recover your vehicle. This is a very unpleasant experience for you and the fees incurred will be added to your existing debt.
Q. What happens if I can't pay my debt?
A. if you are having difficulty paying off your loan, bring your vehicle in and we will make you an offer to buy it. You will pay off your loan and leave with some cash. Remember if you don't pay your loan you have promised to give us your vehicle to cover the debt, if we have to recover it you will lose your vehicle and any equity you had in it. We recommend that you always work with us if you are unable to live up to your end of the deal.
Q. Can I get my car back if it has been recovered?
A. Yes. You will receive notice informing you that you have 21 days from the date the vehicle was recovered to pay off your loan and all the associated recovery fees, storage charges and interest. Remember it is always best to avoid having your vehicle recovered in the first place. We will work with you if you work with us.
Loan terms & Fees:
Title loan repayment terms are from 30 - 61 days. All short term loans are based on 36% APR. Loans can be repaid at any time prior to the set due date with no surprise fees or penalties for early payment.
Long term financing from 6 - 12 months (29% - 36% APR) is offered on any vehicles purchased from us.
Example of financing on vehicle purchase:
$1000 vehicle purchase at 36% APR over 12 months
$1205.55 Total, with equal monthly payments of $100.46 for 12 months.
(Total interest charged $205.55)