When you start shopping for a car, you might be more concerned with additional features and specialty paint jobs than you are about the monthly bill. Unfortunately, the wrong financing can cost you dearly. Compound interest never sleeps, which means that you might be paying much more than you should if you work with the wrong lender. I want to help you to make great financial decisions, which is why I created this website. However, if you can remember a few tricks and keep those payments to a minimum, you can drive away with the car of your dreams without breaking the bank.
During the COVID-19 pandemic of 2020, millions of people were suddenly left without work due to government-mandated closures of non-essential businesses. Hourly employees, private contractors, and even small business owners were left without a steady income. Naturally, this kind of crisis can lead to many people facing newfound financial struggles. If you have found yourself in the middle of a pandemic with a need for money to get by, you may look at a lot of options to get the cash you need, and a car title loan may be one of your considerations. Here are a few things to keep in mind about obtaining a car title loan during a pandemic.
Car title loans do work best for people who have stable income.
Even though the primary thing a lender is going to be looking at when you apply for a loan is the value of the vehicle you are offering as collateral, they will also usually want to know that you have a stable form of employment. Unfortunately, if you have lost your income due to the pandemic, you may not qualify for a loan. There can be exceptions, however, as some companies do offer loans purely based on the value of the collateral.
Car title loans can work if you are expecting a future payment.
If you have lost your job but you are anticipating a payout from something like a 401(k) or stock account, a car title loan may be a good option to get you by until you do receive your money. For example, if you have been told by your employer that you will be receiving a final payout on what you have accumulated in stock with the company by a certain time, you should be able to pay the loan off when you get the funds.
Car title loans are good for short-term financial crises.
Pandemics can last for many months, but they can also dissipate rather quickly as solutions are found, immunities are built, and treatments are developed. Before you do decide to take on a car title loan during a pandemic, even if you still have an income, make sure you gauge what is taking place. It is not the best idea to take on a loan if you are unsure of if or when you will be able to pay back the money. Wait until you are more certain of what toll the pandemic will take on your own personal finances first.
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