Vanderbilit University wanted to know if the assertion that many people lose their autos due to bad car title loans was true or not. Vanderbilt’s Paige Marta Skiba, an associate professor of law, sought to answer the question. What did her research show? “Repossession affects few borrowers, and our evidence indicates that most borrowers will not lose their only way to work because of repossession.”
Car title loans are often used by many people who are shut out from the mainstream banking system. And, these loans can be expensive. A borrower is more likely to have trouble paying the loan back, particularly if the interest rate is as high as 300%. However, if borrowers concentrate on using a car title loan company that is reputable, the chance of loss is greatly decreased.
Our advice? Make sure you understand the terms of the loan. Taking out a car title loan is not a crime. Just be sure you know what the terms mean for you. Ask questions such as, “what is the interest rate?”, “when is the final payment due?”, “what happens if I’m unable to make the full payment?”
Also, have a friend or trusted relative look at the loan paperwork. Vanderbilt’s research shows that most title loan customers are overly optimistic that they will be able to pay back their loans on time. Some loans allow for the borrower to take extra time to pay back the loan. However, be aware that this costs you more in interest payments.
If you are looking for car title loans in Miami, you’ll want one that has been around for a long time. With such a business, you should be able to execute your loan successfully, and with minimum extra costs. What’s next? Read up on smart business practices before you act.