If you own a vehicle such as a car, truck, boat or motorcycle, it is possible to borrow against the value of the vehicle. Known as a title loan, this can provide quick cash while using your vehicle as collateral for the loan. The actual amount that you might be able to borrow will depend a lot on the overall value of the vehicle, what you owe, and how much equity you have in the vehicle itself. Often what you might get for your vehicle is typically limited to 50% of what the vehicle’s fair market value would be. Depending on the province you live in, sometimes lenders will take heavy-duty equipment and recreational vehicles.
A title loan is not available from banks or credit unions. They are usually only available from alternative lenders. A number of lenders will use the vehicle value to determine things such as the interest rate, repayment terms, and what amount you might be able to borrow.
Things to know before thinking about taking a title loan would include the total cost of the loan, amount and payment schedule, annual percentage rate (APR), and any options to pay in part (or full) before the due date without additional fees.