How to Maximize Your Auto Title Loan

We give you tips on how to increase the value of your car, which may help you get a bigger loan.

Before a loan provider offers you an auto title loan, they will likely ask you to bring your car to an authorized inspector, who will determine how much your car is worth. Your car’s value will be one of the factors used to figure out your loan amount. Since auto title loans usually end up being around 25-percent to 50-percent of the value of the car, if you increase the value of your car, then you might be offered a higher loan amount.

[Note: You should never take out a loan for more than you need. Remember, you will need to pay back this loan with interest and fees. The fees will likely be higher if your loan is for a higher amount. So it makes since to only borrow what you need.]

How to Increase the Value of Your Car

If you look up the resale value of your car, you’ll likely be presented with a range of a few thousand dollars. Where your car falls in that range depends on how closely it resembles the car you drove off the lot. The good news is you can restore your car to its former glory, thus increasing the overall value of your car. Here are some fixes that make sense:

  • Start with the worn tires. A worn set of tires makes the entire car look old. Black Friday (the day after Thanksgiving when stores put on major sales to lure in holiday shoppers) is the best time of the year to find discounts on tires.
  • If you have windshield cracks or chips, you should have them fixed. Your insurance might even help cover the repairs, which would mean you’d boost the value of your car for the cost of your deductible.
  • Small dents and scratches can be removed for less than you’d think. This can be true for bigger dents and panel replacements, too. When replacing an entire panel, you should know that stock parts will likely be much more expensive than other options.
  • A shiny car is hiding under that layer of dirt and grime. We recommend scrubbing and even waxing your car. Don’t forget about the inside. Take out all the trash and give it a good vacuum.
  • Make sure all the lightbulbs work. That includes the headlights, taillights, license plate lights, and the interior lights.

Try not to spend too much on any of these car improvements. At best, you might be able to boost the value of your car by a few hundred dollars. If it costs any more than that to do the adjustment, then it’s probably not worth it.

What Not to Do

Not every “enhancement” will actually increase the value of your car. Avoid having any of this work done if you ever plan to use your car as collateral for a loan:

  • Never install oversized rims. Anything over 18-inches is going to make your car less marketable, and it also might void warranties.
  • If an auto shop offers you a deal that’s too good to be true on a makeshift sunroof for your car, don’t do it. A poorly installed sunroof can drastically reduce the value of your car.
  • Make sure your windows aren’t overly tinted. If you live in a hot climate, you might be tempted to push the limits on your car’s window tinting. Just be warned that this could end up lowering the value of your car if it looks like they’ve been tinted beyond the legal limit.
  • Don’t alter your car’s suspension. Whether you make the car ride higher or lower, the car will be worth less.
  • Don’t install superchargers or turbochargers. The assumption is that a car with these enhancements has been driven harder than one without them.

You should also avoid any other “enhancements” that would make the car less appealing to a potential buyer. Remember, when you add decals, paint the car a unique color, install a huge subwoofer, or reupholster the seats, you lower the value of your car.

That only matters if you use your car as collateral for a loan or if you ever plan to sell it. If you do plan to sell it …

Selling Your Car

Try to remember these rules whenever you are tempted to overly customize your car. That way when it comes time to sell your car, you might be able to get a higher price for it.

If you need help finding an auto title loan, we can help match you with a loan provider. Just head over to our Apply Now page to request your loan.