Anyone who's actually responsible for their own bills — home, vehicle, excise taxes, utilities and so on — has probably come to grips at some point with the concept of poverty. Even if it's just temporary, those people find themselves with less cash on hand than is needed to meet a financial deadline. The natural answer is to borrow money from someone, preferably a family member or a friend, but there are financial assistance companies that offer loans with interest on top. Cash advance, signature loans, payday lending and title loans are all examples of this.
Title loans (sometimes used interchangeably with auto loans, auto pawns or registration loans) don't rely on a credit score to swing a little money where it's needed. Rather, they work off the auto title that represents a vehicle in one's legal possession. Most loan companies will play up this model of lending with a family car as a classic example, but in truth, many such firms will accept titles for boats and motorcycles as well. Taking out loans on a motorcycle is worth special attention on behalf of prospective clients for no other purpose than defining the inherent value that is sought in such vehicles and how this affects one's borrowing power in an auto loan.
When agreeing to take out a title loan, the vehicle title is temporarily traded over in exchange for the cash. This doesn't entail that any unfavorable changes can or will be made to the title, and there are always laws of one sort or another that prevent these companies from seizing the vehicle until a certain delinquency period has passed.
How a Motorcycle's Value is Determined
Truthfully, most title-based lenders will simply refer to Kelley Blue Book for the fair market figures that govern what any vehicle will be worth in the event it needs to be repossessed to cure damages to the business due to an unpaid loan balance. Generally speaking, such a lender will factor in conditions such as mileage and general condition (functional and aesthetic), then take 50 percent of the resulting value and top off the client's potential borrowing power at that figure. From there, extra filters such as income stability and title clarity modify the eligibility of the client to borrow up to that amount.
Since one's credit history has no bearing here, it's not important to focus on whether one has a record of paying their debts on time or not. The vehicle itself is going to be the primary judge of one's power to take out cash with title loans in Columbia. In motorcycles, the conditions of evaluation are weighted differently than in traditional cabin vehicles. For one, motorcycles occur in different forms:
Like with cars, the actual difference between these design models isn't usually significant; that comes down to the brand and what's underneath the hood. For example, Harley Davidsons are a high-quality, high-demand item that serves as a status symbol as much as a functional transportation automobile. A polished chrome chassis and hubs will usually add considerable resale value to the motorcycle because these factors are much-sought by those who have a healthy chunk of change and are willing to trade it for a good-looking ride on the road.
Bear in mind that ATVs aren't restricted to the four-wheel variety; they can be as low as two wheels and run as high as eight. Going by Kelley Blue Book, these are considered motorcycles as much as mopeds. In this way, one can submit titles for almost any sort of transportation vehicle even if it's not strictly used for transportation in the conventional sense. Racing bikes, novelty models and everything in between has value, and that's ultimately what title loan companies will look at when determining how much they can lend.
Motorcycle or Car Title?
Because motorcycles are typically less expensive than cars, clients generally won't get as much out of them when parting ways with the title for a little money. At the end of the day, both families of automotive transportation cost the same currency. However, title-based lenders don't care what type of vehicle you're offering as long as it's worth something if they attempt to sell it.
On the other hand, lending the title of a motorcycle might be seen as the safer route in the event that multiple vehicles are owned; the cabin vehicle — usually the most important one in any given household — can be spared in case the client defaults on the loan and the motorcycle needs to be recovered. Really, it just depends on how much cash is needed and the certainty that the loan will be paid off in timely fashion. Fortunately, repossession is a rare incidence due to refinance plans and loan companies' willingness to work with their clients.
Don't think that title-based loan companies gain anything from entrapping clients into the eventual repossession of their vehicle for sale; in truth, many such transactions result in lost money or barely enough to cover the unpaid principle. Because the vehicle needs to be of sufficient value to cover the entire principle in case the loan terms are completely abandoned from the outset, the value of the loan might be kept on the lower bound in accordance with the company's faith in the client based on their presentation of character, financial situation and expected income over the coming term payments. Still, it's almost never beneficial for either party when a vehicle ends up towed off.