When you need money and don't have many options, you may be able to get a title loan. A title loan uses the title of your car as collateral to guarantee that you'll repay the money to your lender. Title loans have high interest rates, and if you don't repay the loan, you will lose your car. While New York usury laws cap interest at 16 percent, car title lenders are allowed to charge higher interest. In New York, a number of companies offer title loans to state residents. Plan how you'll repay the money before relinquishing your title and receiving a check.
Examine your car title to make sure you own it free and clear with no debt or lien against the car.
Contact a title loan company. In New York, you can contact Auto Pawn, Auto Cash USA or Snappy Title Loans, among others, to get cash for your car title. Contact local title companies to deal with representatives in person, if you prefer.
Ask the representative about the interest rates and repayment period. Repayment periods for car title loans are usually short and the interest rates are high. Ask about the rollover period for the loan. If the title loan is unpaid, the interest rate will be increased and a new payment date will be set.
Ask the representative about the valuation of your vehicle. Title loans in New York are based on the resale value of the car. Title loan companies assess the value of your car, and the percentage of resale value you obtain in your loan is entirely at the discretion of the lender.
Choose a company based on the factors discussed with the representative. Read the contract and sign if it's acceptable and conforms to New York laws. Submit your car title to the chosen company.
Some pawn brokers in New York offer title loans. Out of state title loans can be obtained online, and those transactions are completed under the laws of the state where the business is located.