Most people are aware of vehicle title loans but do not realize that title loans are not only for cars. Motorcycle title loans are also a thing. There are title loan providers that allow you to put other vehicles up for collateral such as a motorcycle.
Keep reading to learn more about motorcycle loans.
How Do I Get a Motorcycle Title Loan?
If you own a motorcycle you can give a title loan company the title to your motorcycle to be used as collateral for a loan. The amount you can borrow depends on the value of your motorcycle and the laws in your state.
Types of Title Loans
There are two main motorcycle title loan types, a single payment loan, and an installment loan. Single payment title loans give you up to a month to repay back the entire loan. Typically this is the loan type used for a smaller loan amount.
The installment loan type will give you between three to twelve months to repay back the money you borrowed. The length of time can vary based on where you live and the state laws.
Typically any loan that has collateral attached to it comes with quite a few benefits. Some of these benefits include any type of credit being accepted, quick cash (some as quickly as 30 minutes), you will also have competitive rates and easy monthly payments.
The best part of all? You can still drive your motorcycle during your loan period as long as you do not default on your loan. The reason there are so many benefits is that if you were to default on the loan they have the right to take possession of your bike and sell it to recoup the money they lent you just like it works with a car title loan.
What Are the Steps?
Depending on where you live these steps can vary but typically they go in this order:
First, you will get an estimate of your motorcycle’s worth. Second, you will find title loan lenders and compare their rates and repayment options. Third, you will bring your motorcycle and documents to a title loan location for a short inspection. Fourth, as long as all goes well you will get your funds and drive away with or on your motorcycle.
Feeling Like a Motorcycle Title Loans Pro?
As you can see taking out motorcycle title loans is possible and can come in handy if you find yourself in a tight situation where you need some emergency money fast. Make sure that you read all of the fine print before signing on the dotted line because these types of loans typically come with a high APR.
Also, make sure to do your research on the laws in your state when it comes to title loans. There are some states that ban title loans and other states that regulate these loan types.
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