Are Car Title Loans a Smart Move?

• Car title loans are short-term loans for small amounts of money.
• Acquiring a car title loan involves giving the lender the title to your vehicle.
• Car title loans can be subject to high interest rates and fees, which can make them difficult to pay off.

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If your bank account isn’t looking so great and you have bad credit, you may have considered a car title loan as a quick way to get cash. While they may only be relatively small amounts of money, car title loans can be risky if you don’t have a solid grip on your finances.

This article will look at how car title loans work and weigh the benefits and risks of getting one. To help consumers make informed financing decisions, our research team has also combed the industry to identify the best auto loan companies.

What Are Car Title Loans?

Unlike payday loans, which serve a similar purpose, car title loans work by putting your vehicle up as collateral. These secured loans are for small amounts of money and often need to be repaid in a short amount of time.

The Pew Charitable Trusts reports the average loan amount is $1,000. Because they’re short-term loans – with due dates commonly within 15 to 30 days – borrowers are usually expected to repay the balance in one lump sum.

How Do Car Title Loans Work?

The process for getting a car title loan is relatively simple:

1. First, you fill out an application. You then show the car, the title, and a copy of your photo ID to the lender. You may be asked for a duplicate set of car keys.
2. If the loan is approved, the car title lender exchanges the money and keeps the vehicle title. 
3. When it is time for repayment, you pay the lender a monthly fee in addition to the borrowed amount.

The monthly fee for a vehicle title loan tends to be very high interest. According to the Federal Trade Commission, the average fee is 25%, which is an annual percentage rate (APR) of about 300%. This can be costly.

For example, let’s say you take out a car title loan for $500 with a finance fee of 25%. Twenty-five percent of $500 is $125, which gets added to the final amount due. So, at the time of repayment, you would owe $625.

Applying for Car Title Loans

Borrowers can obtain car title loans online and in person. Notably absent from the application process for auto title loans is a credit check. That’s because failure to pay the loan means the lender can repossess your vehicle.

To approve you for a car title loan, most lenders will require a clear title. This means you’ve paid the vehicle off. However, some lenders may just need you to prove you have equity in the vehicle.

Why Are Car Title Loans Risky?

With a car title loan, you risk not only losing your car, but also getting locked into a cycle of debt. If you’re unable to repay the loan, the lender may let you do a “rollover.” A rollover is when a lender allows you to keep the loan money for another 30 days but ensures you will have to pay another monthly fee.

Rollovers are fairly common. In June 2019, the Consumer Finance Protection Bureau (CFPB) polled consumers who had secured auto title loans in the previous six months. It found 83% of respondents still owed money on their loans. 

The CFPB also reported roughly 20% of borrowers experience repossession if their loans aren’t paid back in full. According to Forbes, car title lenders make most of their revenue by letting borrowers take out new loans to pay off existing ones. This cycle of small loans becoming long-term debt also ensures continued business.  

What Are the Pros & Cons of Car Title Loans?

If you’re thinking about taking out a car title loan to handle unexpected expenses, you should consider the pros and cons: 

Car Title Loan Pros	Car Title Loan Cons
No credit check means approval for borrowers with bad credit	Monthly payments can turn into long-term debt
You have access to quick cash	Your car could be repossessed
Late payments don’t impact your credit score	Interest rates are high compared to other options

Car title loans can be attractive to borrowers with poor credit since most title lenders don’t perform credit checks. Additionally, your credit score won’t take a hit if you’re late on a payment. That said, getting quick access to cash with a car title loan rarely justifies the high interest rates and potential to lose a valuable asset.  

Alternatives to Car Title Loans 

Since the data behind car title loans is less than stellar, going another route is probably a smarter financial move. Here are some alternatives to putting up your car’s title:

• Paycheck advance: If you’re in good standing with your employer, you may be able to get some of your pay early.
• Friends and family: If you want to avoid a financial institution altogether, try talking with friends and family to see if you can set up a loan agreement with a payment plan.
• Credit cards: Credit cards have set limits, and you’ll be charged interest if you don’t pay your balance off by the end of the billing period. Even so, credit cards have lower interest rates than car title loans.
• Personal loans: These installment loans can be used toward almost any financial need and are available through banks, credit unions, and online lenders. They often have repayment terms of one to five years, and their interest rates are far lower than those of auto title loans.

Top Recommendations for Auto Loans

Regardless of whether you’re financing a car or using one as collateral, it’s important to compare options to make sure you’re getting the best rate. It’s wise to always read the terms of each loan and check for potential penalties. You can also take advantage of the online prequalification many financial institutions offer.

FAQ: Car Title Loans

How much title loan can I get for my car?

According to the CFPB, the average car title loan is around $1,000. The usual loan limit is between 25% and 50% of the car’s value.

How easy is it to get a car title loan?

Getting a car title loan is fairly straightforward. The borrower fills out an application and lets the lender inspect the vehicle and its title. If the ownership of the vehicle is clear and the lender approves the application, the borrower hands the title over in exchange for a loan.

How do auto title loans work?

Car title loans are small, short-term loans subject to high interest rates. With a car title loan, a lender holds on to your vehicle’s title as collateral. If you don’t repay the loan, the lender has the right to repossess the vehicle.

Do title loans affect your credit?

Most car title loans do not require a credit check. That means a lender likely won’t report payments to credit bureaus since it can repossess the vehicle to settle the debt.

Original article: Are Car Title Loans a Smart Move?

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Speed Read, August 29 2021

We’re kicking things off with something fast this week: a race-bred BMW boxer that’s been made street legal. We’ve also got a trials-style Royal Enfield from Los Angeles, an electric speedway bike from Denmark, a folding scooter from the 60s, and rumors of a new modern classic from Kawasaki.

BMW Boxer racer by Boxer Moto These days, classic BMW cafe racers are a dime a dozen. But how about a custom-built boxer-powered race bike, loaded with top-shelf parts, that’s been made street legal? That’s more like it.

This unique machine belongs to Eiichi Tanaka in Japan, and was built by Koji Yamauchi at the BMW specialist shop, Boxer Moto. Tanaka-san first raced the bike in 1993—but at 67 years old, he’s left racing behind him. So he’s converted it for street use, turning it into one of the most over-qualified cafe racers we’ve seen.

The bike’s built around a frame from the Dutch frame maker, Bakker, featuring square aluminum sections for rigidity and lightness. The motor’s a 980 cc unit with rare Krauser four-valve heads, an Edelweiss camshaft and 39 mm FCR carbs. It makes 84 hp and 88 Nm, and sits high in the frame for extra cornering clearance.

Power’s sent to the back wheel via a Paralever final drive-slash-swingarm, hooked up to a WP Suspension shock. The wheels are 17” JB-Power Magtan units, with fully adjustable upside-down forks up front. There are modern Brembo brakes at both ends too.

Tanaka-san hasn’t revealed where the bodywork is from, but we’re loving the retro endurance racer vibe it’s giving off.

Other than the prominent taillight, the street legal accoutrements are mostly subtle. There’s a small headlight poking out the fairing, slim bar-end mirrors, and the tiniest of LED turn signals mounted at both ends. Behind the fairing is a Touratech IMO 100 R speedo—a part that’s usually used on rally bikes.

We’re willing to bet that Tanaka-san’s BMW has a million stories to tell from on the track. But it’s heartwarming to know that it’s now being let loose on the street too.

Royal Enfield Classic 500 by BAAK USA This Los Angeles shop has been open for less than a year, but BAAK have already built up an impressive portfolio. Here’s one of their latest projects: a Royal Enfield Classic 500, reimagined as a vintage trials bike. It’s a homage to the late Johnny Brittain—a celebrated English trials rider who took gold in the 1950 ISDT on a Royal Enfield, at the tender age of 18.

The main goal here was to shave weight off—both visually and physically. BAAK swapped the fuel tank for a slimmer aftermarket unit, and the steel fenders for a pair of aluminum items from their HQ in France. There’s a new seat too, wrapped in an aged brown leather.

The wheels were re-laced with 21F/18R aluminum rims, for better off-road handling and a wider tire selection; a set of Shinko SR241s is currently fitted. BAAK also removed the front fork covers, and have installed a pair of Shock Factory shocks at the back.

The crew also added a high-mounted single exhaust, and swapped the airbox for a pod filter. The Enfield’s original side ‘boxes’ (usually found under the seat) are gone—the right side now features an alloy side cover, and the left a leather bag that holds the electrics.

Up in the cockpit is a new machined top yoke, with a wide set of scrambler bars. There’s a new headlight out front with a Motogadget speedo higher up, and both are mounted on custom-made brackets. The ignition now sits below the tank, and there’s a pair of Highsider combo LEDs performing taillight and turn signal duties out back.

BAAK estimates a weight saving of 80-100 lbs—which is plausible when you consider the weight of the Classic 500’s OEM trim. It looks a lot sharper too, pictured here on a jaunt in and around San Francisco. [BAAK USA | Images by Viktor Radics]

Electric Speedway bike Michel Riis is a former Danish flat track champion, an ex-Yamaha designer, and co-founder of the startup electric bike company Switch. He’s also passionate about speedway racing—a sport that isn’t quite enjoying the popularity it once did.

“I have a huge love for speedway,” he tells us, “and some of my best years were at the track with my late dad. But speedway is a dying sport in most of Europe now. Tracks are closing and the sport can’t attract new riders.”

“The reason might be the complexity of combustion engines and the huge cost of maintaining them. The clubs in Denmark can’t even get enough riders to have more than one team. We are on a mission to change that.”

Michel’s plan is a clever one. Under the name Espeedway, he’s developed an electric drivetrain kit that can be retrofitted to a regular petrol-powered speedway race bike. Working with existing bikes helps to keep the costs down—especially if you’ve got an old speedway bike with a blown motor gathering dust in the shed.

But the big hook here is that Michel and his partners are targeting younger riders. The electric motor can be tuned to alter its power output or fitted to another chassis—so you can keep the same drivetrain as you move up through classes. The bike pictured here makes roughly 30 kW and 90 Nm, with enough charge for five to ten heats.

“The next generation doesn’t care about noise or smell,” he says. “All our test riders had fun and an ‘e-grin’ after racing our bikes.”

This bike’s just been raced at an official FIM youth racing camp in Germany, and Michel has aspirations of running an indoor series in Denmark in winter. Oh, and these components can be fitted to flat track bikes, too. [Espeedway on Facebook | Photos by Frederik Vohnsen]

Fuji Go Devil folding mini scooter Here’s something you don’t see every day. Manufactured in the 1960s by Fuji Industries in Japan, the Go Devil was a folding mini bike, marketed as a ‘suitcase motorcycle.’

It came with its own carry bag, and was pitched as a personal vehicle that you could take on a plane, and then unfold on the other side. That was, of course, a ridiculous notion—the Go Devil was more likely to be taken on camping trip than a flight.

Assembling the Go Devil wasn’t exactly rocket science, and could be done in about a minute. All you had to do was fold out the front bit, secure the central brace, click the handlebars into position, rotate the rear wheel into place, and attach the separate front wheel.

The scooter itself was pretty average for the time, with a 50 cc two-stroke single and a centrifugal clutch. It did have rear suspension though, which was uncommon for a minibike back then.

Like many things, the Go Devil is appreciated more now than it was then. It was reportedly not very expensive or considered particularly valuable, so there aren’t many left. Worldwide Auctioneers have two though, and will be auctioning them off soon.

Both examples seem mostly complete, but both are missing a crucial component: their front wheels. Still, it should be easy enough to find a suitable substitute, and restoring a minibike can’t be that hard… right? [More]

Is a Kawasaki Z650RS coming? Kawasaki are teasing a new retro motorcycle, and a couple of outlets are speculating that it could be the rumored Z650RS. All the Japanese marque has revealed so far is a 17 second teaser video [below]—but the open face helmets and cringe-worthy ‘Retrovolution’ tagline seem like obvious hints.

The assumption is that the Z650RS would be a redesigned Z650, just like the Z900RS is based on the Z900. And we’d be all for it—the Z650’s parallel twin motor makes a usable 67 hp, and if it looks as good as the Z900RS, but costs less, it’d be an attractive option.

Of course, we could be wrong, and Kawasaki could be brewing up something else entirely. What do you think?

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Bite-Size Podcast & Photo Gallery: GMC Canyon AT4 OVRLANDX Off-Road Concept

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Our editor, Carl Anthony, provides an audio overview of the GMC Canyon AT4 OVRLANDX Off-Road Concept. Complete with front and rear locking differentials, Multimatic DSSV dampers, and a functional kitchenette, the OVERLANDX concept is the ultimate weekend getaway vehicle. Hit play to hear more!

See the full GMC AT4 lineup here. Join us on Twitter to stay up to date on cool concept vehicles like the OVERLANDX.

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Original article: Bite-Size Podcast & Photo Gallery: GMC Canyon AT4 OVRLANDX Off-Road Concept

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2022 Ford Explorer ST & ST-Line Overview: Engine Specs, Cool Styling Updates & New Tech Features

Performance meets style. That’s the idea behind the 2022 Ford Explorer ST lineup, now expanded to include two new offerings: the Explorer ST rear-wheel drive and the Explorer ST-Line. “We’ve taken Explorer, already the all-time best-selling SUV, and given our customers the chance to put the emphasis on the things they value most,” said Jeff Marentic, Ford marketing manager. “For on-road performance and styling, our new rear-wheel-drive Explorer ST and new Explorer ST-Line are specifically designed to appeal to new customer groups with different adventure needs.”

2022 Ford Explorer ST

Although rear-wheel drive is standard, the 2022 Ford Explorer ST is available with four-wheel drive. Under the hood is a 3.0-liter EcoBoost married to a 10-speed automatic. With a tank of premium fuel, the engine cranks out a max of 400 horsepower and 415 lb-ft. of torque. “No two SUV drivers use their vehicles the same way, so our goal is to meet the needs of as many as possible,” explained Lee Newcombe, Ford Explorer marketing manager. “Four-wheel drive capability is great if you need it, but if you don’t, you shouldn’t have to pay for it.”

2022 Ford Explorer ST. Photo: Ford Motor Company.

2022 Ford Explorer ST-Line

The Explorer ST-Line includes different appearance and tech upgrades to help set it apart from its other Explorer brethren. Positioned between the XLT and Limited, the ST-Line was designed for those who like the performance-inspired feel of Ford’s ST brand but don’t require its full power and capability, or price for that matter (the ST-Line’s starting MSRP is $7,570 less than the Explorer ST). “These changes to the Explorer lineup were guided by what our customers told us they wanted,” Newcombe added.

From the outside, the ST-Line is nearly similar to the Explorer ST. The ST-Line rides on 20-inch machined aluminum wheels and features a blacked-out grille, gloss-black hood badging, black-out treatments for the headlamps and taillamps, and dual exhaust tips. Under the hood is a 2.3-liter EcoBoost with 300 horsepower. Like the Explorer ST, the ST-Line also makes use of a 10-speed automatic transmission.

“Explorer customers have very well received the ST brand since it arrived two years ago,” Newcombe said. “With the addition of Explorer ST-Line, Explorer will offer the broadest performance-inspired lineup in the segment.”

On the inside, the ST-Line serves up nearly everything a modern driver could want. Heated Ebony Black ActiveX seats with Miko inserts, heated steering wheel, scuff plates, premium floor mats, and red accent stitching throughout are standard. Available features include a 12-speaker B&O sound system, wireless charging pad, auto-dimming rearview mirror, and a 360-degree camera. Also available is Ford’s Co-Pilot360 Assist technology, which includes Evasive Steering Assist, Intelligent Adaptive Cruise Control with Stop and Go, and voice-activated navigation.

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2022 Ford Explorer ST-Line. Photos: Ford Motor Company.

2022 Ford Explorer Warranty

Every new Ford vehicle comes with a three-year, 36,000-mile bumper-to-bumper warranty and a five-year, 60,000-mile powertrain warranty. Depending on how much you drive, extending that warranty may be a good idea. Before making a decision, see this helpful guide to Ford’s factory warranty. 

Pricing & Availability

The 2022 Ford Explorer, including the ST and ST-Line, will arrive at dealers later this year. More detailed pricing info will be available at that time.

When shopping for any new Ford SUV, we trust Rydeshopper, a free and neutral third-party search site* that lets you see dealer inventory in your area. Rydeshopper will help you compare prices and see which dealers are offering the best discounts and incentives. While you are shopping for a vehicle, regardless of make or model, you always want to try and obtain the invoice price. This helpful guide explains more about how to go about that when shopping for a new vehicle. 

Carl Anthony is Managing Editor of Automoblog and a member of the Midwest Automotive Media Association and the Society of Automotive Historians. He serves on the board of directors for the Ally Jolie Baldwin Foundation, is a past president of Detroit Working Writers, and a loyal Detroit Lions fan.

Photos & Source: Ford Motor Company.

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Original article: 2022 Ford Explorer ST & ST-Line Overview: Engine Specs, Cool Styling Updates & New Tech Features

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2022 Kia Sorento PHEV Overview: Powertrain Specs, Estimated Range, Safety Features & More

The 2022 Kia Sorento PHEV is stirring up the crossover party with its sporty plug-in-hybrid powertrain and three rows of seats. The latest Sorento PHEV is unlike any midsize crossover. When it arrives at U.S. dealerships this fall, the Sorento PHEV will be the only vehicle in its class to have standard three-row seating (the Chrysler Pacifica Hybrid is its closest competitor, but the Pacifica is a minivan, not an SUV).

Furthermore, the newest Sorento PHEV offers up to 32 miles of all-electric range. It’s not exactly a deal-breaker since the Toyota RAV4 Prime delivers 42 miles of electric range, but the Toyota only has two rows of seats.

2022 Kia Sorento PHEV: What’s New?

Besides wearing new Kia badges, the 2022 Sorento PHEV is packing a plug-in-hybrid powertrain shared with the Hyundai Santa Fe PHEV. It has a 1.6-liter turbocharged four-cylinder gasoline engine pumping out 177 horsepower and 195 lb-ft. of torque. It also has a single electric motor churning out 84 horsepower and 224.2 lb-ft. of torque. The latter arrives from zero to 2,100 rpm, making Sorento PHEV a sprightly daily driver in all-electric mode. The motor draws power from a 13.8 kWh battery pack.

All told, Sorento PHEV has a combined 261 horsepower, more than enough for a midsize crossover. However, it’s not enough to run circles around the Toyota RAV4 Prime, which has 302 horsepower and can go from zero to 60 mph in under six seconds.

But since the fourth-gen Sorento has a 1.4-inch longer wheelbase and is 10 mm longer than its predecessor, the PHEV version now has more room to accommodate six passengers with standard captain’s chairs in the second row and a foldable third row. The Kia Sorento PHEV has up to 143.8 cubic feet (4,072 liters) of passenger space and 12.6 to 75.5 cubic feet of cargo room if you fold the third and second-row seats. Those are best-in-class numbers for a midsize crossover.

“The Sorento PHEV’s rare combination of drivability, efficiency, and spaciousness will make it a compelling choice for our customers,” said Sean Yoon, President & CEO, Kia North America and Kia America.

In addition, Sorento PHEV has a standard torque-vectoring all-wheel drivetrain with a center locking differential for better traction and grip during the winter or rainy season. The hybrid system sends power to all four wheels via a six-speed automatic gearbox with paddle shifters.

2022 Kia Sorento PHEV. Photo: Kia Motors America.

Kia Sorento PHEV: Economy & Range

According to Kia and based on their testing, the Sorento PHEV is targeting a combined MPGe figure of 79, along with 34 mpg in hybrid mode, and a combined overall range of 460 miles. The numbers are slightly better than the Hyundai Santa Fe PHEV with the same hybrid powertrain. However, these are only Kia’s estimates. Official EPA figures are forthcoming.

Loaded With Tech

The 2022 Kia Sorento PHEV is brimming with advanced tech features. It has a 10.25-inch touchscreen infotainment system with navigation and UVO link, Sirius XM, wireless charging, push-button start, eight USB charging ports, an available Bose audio system with up to 12 speakers, and a digital instrument cluster.

Safety Features

The Sorento PHEV comes standard with Kia Drive Wise on the safety front, including blind-spot collision avoidance assist, driver attention warning, lane following assist, smart cruise control, rear-cross traffic alert, blind-spot monitoring, and a surround-view monitor, among many others.

2022 Kia Sorento PHEV interior layout.

2022 Kia Sorento PHEV Warranty

Every new Kia comes with a bumper-to-bumper warranty of five years, or 60,000 miles, along with a 10-year, 100,000-mile powertrain warranty. Although the length of Kia’s warranty is one of the best on the market, there are certain situations where it might be a good idea to extend that warranty. See this helpful guide to Kia’s factory warranty before making any decisions. 

2022 Kia Sorento PHEV: Pricing & Availability

The 2022 Kia Sorento PHEV is available in two trim versions: SX and SX-P. Production is at Kia’s Hwasung plant in South Korea. Pricing remains forthcoming, but the first deliveries will arrive at Kia dealerships this fall. Kia claims Sorento PHEV is eligible for up to $6,587 in federal tax credits and other state incentives.

When it comes to getting the best price on any new Kia SUV, we trust Rydeshopper, a free and neutral third-party search site* that lets you see dealer inventory in your area. Rydeshopper will help you compare prices and see which dealers are offering the best discounts and incentives.

Alvin Reyes is an Automoblog feature columnist and an expert in sports and performance cars. He studied civil aviation, aeronautics, and accountancy in his younger years and is still very much smitten to his former Lancer GSR and Galant SS. He also likes fried chicken, music, and herbal medicine.

Photos & Source: Kia Motors America.

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Original article: 2022 Kia Sorento PHEV Overview: Powertrain Specs, Estimated Range, Safety Features & More

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