Life, unfortunately, does not always go exactly according to plan. It has a nasty habit of throwing a crisis in our path at the most inappropriate times, and often when we are strapped for cash. Luckily, in these moments, our vehicles can actually count as massive assets and can be used to help secure some cash to pull us through our situation.
BHM Financial Group is one of Canada’s top loan providers, able to provide you with that cash boost when you most need it. This can be done through a BHM car title loan.
What are car title loans exactly?
Car title loans are generally short term and allow potential clients to get a secured loan by putting their vehicle up as a form of collateral. Once the agreement is signed, a lien is placed on the vehicle. This is only lifted once the contract is paid off.
What is a lien?
A lien is a type of security interest that is placed on an item (in this case, the vehicle). It helps to ensure payment of the outstanding debt agreed upon. In the case of the loan not being repaid, the lien (the vehicle) may be repossessed and sold to recoup the costs of the loan.
What are the benefits of such a loan?
In today’s difficult financial climate, credit history is often a defining factor when financial institutions decide to grant a loan. At BHM Financial Group, we do not take credit history of the lender into account when they apply for a car title loan. We only look at the condition of the vehicle itself. Perhaps the greatest benefit about this form of lending is that you can keep and use your vehicle for the full duration of the loan.
Requirements
We also require a number of other minor factors to be met before approving a car title loan.
- Insured vehicles of up to 8 years old can act as collateral.
- The vehicle should have no outstanding debt attached to it.
- Owners have to be 18 or older and possess valid licensing for themselves and registration papers for the vehicle.
Obtaining a car title loan
The easiest way to obtain a loan from BHM is to apply Online. We will require copies of some simple documents to secure the loan. These include personal identification, proof of driver’s license, proof of income, proof of address, proof of car insurance and car registration papers. Of course, you may apply at one of our branches throughout Canada as well.
The loan amount, interest rate and monthly repayments are calculated taking various factors into account, including the condition of the vehicle and the income of the lender.
Car title loan research
In an extensive study entitled “Dude, Where’s My Car Title? The Law, Behavior and Economics of Title Lending Markets” undertaken by Kathryn Fritzdixon, Paige Marta Skiba (both of Vanderbilt University) and Jim Hawkins (of the University of Houston) found that car title loans are fairly risk free.
A perfect way to secure money in times of need!
We never know what life will throw our way next. Invariably, life’s emergencies can often only be solved with money in the bank. A car title loan is the perfect way to secure that money in a safe, efficient and risk free manner, allowing piece of mind when you have more important things to focus on.