Car Title Loans for Cash

New motorists are resorting to title loans against their cars for cash. In our scrap my car business, where you can sell an old car for cash to a junk car hauler, the cash you receive can be much needed. The problem with the title loans on cars for cash is that it becomes an ongoing, lingering problem for a couple reasons. When you sell an old car for cash to a junk car hauler, you receive the cash and the car is gone. Typically the vehicle is not in running condition and you are essentially “cutting your losses”. With the car title loans, the consumer is likely still depending on that vehicle and now must overcome high interest and the real threat that the car will be repossessed. Today’s NY Times article named ‘Dipping In to Auto Equity Devastates Many Borrowers’ written by Jessica Silver-Greenberg and Michael Corkery contains the following information: “The 1994 Oldsmobile sitting in a driveway just outside St. Louis was an unlikely cash machine. That was until the car’s owner, a 30-year-old hospital lab tech, saw a TV commercial describing how to get cash from just such a car. Caroline O’Connor needed $1,000 to cover rent & bills, believed she had found a financial lifeline and expressed relief. Her loan carried an annual interest rate of 171% and 2 years and $992.78 in debt later, her car was repossessed. The boom is leading people to take risky lines of credit known as title loans. Titlemax, a title lender, in a recent TV commercial, shows a Christmas stocking flowing with money. Title loans are high-cost, short-term credit in subprime finance, as regulators in a number of states crack down on payday loans. For many borrowers, title loans, also sometimes known as motor-vehicle equity lines of credit or title pawns, are causing owners to lose their vehicles & plunging them further into debt.  Customers of TitleMax typically renewed their loans eight times, a former president of the company disclosed. Roughly 1 in every 6 borrowers who take out title loans has their car repossessed, according to an analysis of 561 title loans by the Center for Responsible Lending.

The lenders argue that they are providing a source of credit for people who are unable to obtain less-expensive loans from banks. The high interest rates, the lenders say, are necessary to offset the risk that borrowers will stop paying their bills. The high interest loans have enticed an influx of Wall Street money. Private equity firms are investing in lenders, and some big banks are ramping up their auto lending to people with blemished credit. Clutching handfuls of cash, a former Miss America contestant zips around in a red sports car, dancing and rapping about TitleMax. Commercials like these help companies like TitleMax entice borrowers to take on the costly loans. TitleMax, a brand of TMX Finance, is privately held and does not disclose much financial information. But a regulatory filing for the first three months of 2013 offers a glimpse into the industry’s tremendous growth. During that period, the profits at TMX Finance rose by 47 percent from the same period two years earlier, and the number of stores it operated nearly doubled to 1,108. The title lenders are seizing upon a broad retrenchment among banks, which have become wary of making loans to borrowers. Regulations passed after the financial crisis has made it more expensive for banks to make loans.  Title lenders are benefiting as state authorities restrict payday loans, pushing payday lenders out. While title loans share many of the same features — in some cases carrying rates that eclipse those on payday loans — they have so far escaped a similar crackdown.” For the complete article visit this link: http://dealbook.nytimes.com/2014/12/25/dipping-into-auto-equity-devastates-many-borrowers/?_r=0

Barberton Junk Cars buys cars for cash in Fairlawn, Firestone Park, Norton, Monroe Falls and Peninsula. We are a junk car hauler and scrap my car provider in Barberton, Bath, Clinton and Cuyahoga Falls. To sell an old car in Tallmadge, New Franklin, Kenmore, Hudson or Lakemore, contact BJC. As a premier junk car hauler in Silver Lake, Copley, Coventry Township and Springfield Township, we are an easy solution for selling cars for cash. We provide often same-day scrap my car services in North Akron, Wadsworth, Chapel Hill and the Rolling Acres neighborhoods and encourage those with damaged cars, wrecked cars and non-running vehicles to visit https://www.barbertonjunkcars.com to sell an old car for cash. We are only a phone call away for junk car hauler service in the Merriman Valley, Mogadore, Stow, Green and Highland Square. Give us a call at (330) 732-JUNK today for a junk car quote.