Sometimes we all find ourselves in a position where we need cash quickly. The answer for most people is to take out a loan, but depending on your credit score this may not be a simple option for you. However, if you own a motorhome and you’re in need of a small, short-term loan, you have the option of taking out an auto title loan using your motorhome as collateral.
Auto title loan lenders usually ask very few questions with regards to your credit history and are known to approve loans very fast. But these loans are also known to have very high interest rates. If your motorhome is worth a lot of money, you may be able to borrow a substantial sum against it. The amount you can borrow on a title loan is calculated by the possible resale value of the vehicle you’re using as collateral. However, be careful that you will be able to pay back the full amount and the interest on time. As they are short term loans, you may only have a very small window to pay it back before the interest goes up, at which point you may find yourself under to meet the repayments and end up losing your motorhome. Generally you should only use such a loan as a kind of “cash advance” when you know you have money coming in soon, but you need to cover an expense immediately.
Before you take out the loan, you need to assess the possible consequences of losing your motorhome if you get into financial difficulty and can’t repay it. Obviously, it’s best to have an airtight plan to pay back the loan, but you should also consider the worst case scenario. Is your motorhome a big part of your life? Do you use it on a consistent basis, or is it an occasional luxury? It’s probably better to use your motorhome as collateral rather than an every day vehicle like your car, which may be an important part of your livelihood if you need to commute to work. You need to take into account the amount of money you need for the loan – you can probably borrow more against a motorhome than a car, depending on their respective values – and the relative importance of each vehicle as a part of your life. Even if the car is more important to your life, a smaller loan using the car as collateral may be a better option than a large loan using the motorhome as collateral, as the former is more likely to be paid off quickly.
Cash Time is the largest provider of Auto Title Loans in Arizona and currently serves our customers from 7 locations in the Phoenix and Tucson markets. At Cash Time our professional staff will treat you with courtesy and respect. We are committed to provide you with the very best in customer service and satisfaction.