How is auto loan interest calculated
Calculating Interest for an Auto Title Loan
It is essential to know how the interest is calculated on vehicle title loans. Most car loan lenders in Phoenix have pre-calculated interest rates which are applicable. These interest rates are determined based on the resale value of your vehicle. The interest applied to your car title loan will be simple interest, meaning a percentage of the principal amount. The interest value could change if you refinance your loan for a larger amount.
You can use an online interest calculator to help you get a better idea about the total amount that will be due in the loan interest period. You will need to know the amount of the principal, the interest and the length of your loan. Consider the fact that short term loans help you payback the loan faster which in turn helps you save better. In any case, even if you have issues with repayment within 30 days as the typical repayment on the car title loan, you can talk with your lender and schedule accordingly. The interest rate is higher than traditional bank loans but it is popular due to the quick loan processing and ease of qualifying for the loan.
But as responsible
borrowing is essential, it is best to go with a reputable Phoenix lender, research your lender and don’t be afraid to ask the loan officer any questions. Look for a lender that can give you the amount you need, while treating you with respect and dignity.
No one enjoys being in a financial bind, but did you know that getting an auto title loan in Phoenix could be a simple and easy option to get cash fast. Additionally, all that is needed is a clear title on the car, condition of the car and the owner above the age of 18 years. Your loan is based on the value of your vehicle, you could qualify for 50%-60% of your car value. And no questions asked about the use of the money. Car title loans are usually taken for a short period of time and is a secure loan as your car is kept as collateral during the tenure of the loan. But you can keep the car and use it which is a big plus. When you repay the total loan amount including the applicable interest, the clear car title is transferred to your name again.
Last updated by David Hurowitz on December 17, 2013.Source: www.phoenixtitleloan.com