Making Sense of Car Title Loan Terms

Welcome back to the Latte Loans blog! Taking out a loan, especially a car title loan near me, can sometimes feel like navigating a maze of unfamiliar words and phrases. At Latte Loans, we believe in being upfront and clear with our Texas community. We want you to feel confident and informed about every aspect of your loan agreement. So, let’s break down some of the key terms you might encounter when considering auto title loans.

Principal:

Think of the principal as the starting point – it’s the original amount of money you borrow from Latte Loans. This is the core amount you’ll need to repay, along with any fees.

Fees:

Fees are additional charges that may be associated with your vehicle title loans. At Latte Loans, we are committed to transparent pricing, so we’ll clearly outline any fees involved in your loan agreement upfront. You won’t find any hidden surprises with us.

Annual Percentage Rate (APR):

The APR is a broader measure of the total cost of your loan, expressed as an annual percentage. It includes fees. Looking at the APR gives you a more complete picture of the overall cost of borrowing loans using car title.

Loan Term:

The loan term is the amount of time you have to repay the loan in full. This will be clearly stated in your Latte Loans agreement, along with your repayment schedule (how often you’ll make payments and the amount of each payment).

Collateral (Your Vehicle Title):

A title loan is a secured loan, which means it’s backed by something of value. In the case of a Latte Loan, your vehicle title serves as collateral. This means that you grant Latte Loans a lien on your vehicle title as security for the loan. You still get to drive your car, but we hold the title until the loan is repaid. This is how you loan using car as collateral.

Repossession:

Repossession is the process where the lender takes possession of the collateral (your vehicle) if you fail to repay the loan as agreed in your contract. While we understand that unexpected circumstances can arise, it’s crucial to communicate with us if you’re having trouble making payments. At Latte Loans, we’re committed to working with our customers to find solutions whenever possible.

Right to Reinstate:

In Texas, borrowers may have the right to reinstate their loan after repossession. This means that under certain conditions, you may be able to get your vehicle back by paying the past-due amount, fees, and repossession costs. Be sure to review your loan agreement and contact us immediately if your vehicle has been repossessed to understand your options.

Deficiency Balance:

In the unfortunate event that your vehicle is repossessed and sold, and the sale price doesn’t cover the full amount you still owe on the loan (including fees), you may be responsible for paying the deficiency balance.

Title:

The title is the legal document that proves you own your vehicle. When you take out a title loan with Latte Loans, you temporarily give us the physical title to hold as security until the loan is fully repaid. Once your car and title loan is paid off, we’ll promptly return your title to you.

We’re Here to Help You Understand Your Title Loan

At Latte Loans, we believe that understanding the terms of your loan is essential for a positive and stress-free experience. We hope this breakdown of key title loan terms has been helpful. Remember, there are no silly questions when it comes to your finances. If you ever have any doubts or need clarification on anything in your Latte Loans agreement, please don’t hesitate to reach out to our friendly and responsive customer service team. We’re here to support you every step of the way with your secured loan using car title.

Read about Latte Loans here.