What Does It Mean To Have A Lien-Free Vehicle Title?
When buying a car, the lien-free vehicle title is one of the most important pieces of paperwork you'll have. It's a legal requirement to show who owns the vehicle. Without one, there's nothing stating you officially own it. The car title includes a lot of information, such as the car's make, license plate, VIN, and owner information. And it is even more important to know whether or not your specific title is lien-free. Use this article to learn what it means to have a vehicle title and what lien-free means.
Use These Tips To Learn About Your Title
What Is A Lien-Free Vehicle Title?
A lien-free vehicle title, otherwise called a clear title, means you don't have any existing debts or liens on your vehicle. In other words, you don't have any official outstanding monetary burdens tied to the car. Understandably, it's one of the most desirable titles to have. People tend to believe that clear and clean titles are the same. However, that isn't the case. While clear titles dictate the absence of financial burdens, clean titles show that everything is great with the vehicle.
Your vehicle could need repairs, but they're minor, costing no more than the car is worth. Having a clean title means you might find it easier to acquire warranties for the vehicle and insurance. Plus, you'll be able to sell it easier as buyers will know they won't have to spend on major repairs soon after purchasing. If your vehicle has no outstanding debts or liens and is in great condition, your title may be clean and clear at the same time. This is the optimum scenario!
Are There Other Types Of Car Titles?
When it comes to having a lien-free vehicle title, there are multiple types of car titles besides clean and clear. It is important you know what kind of vehicle titles are out there so that you can keep it straight in your mind the kind of title you have. In fact, there are so many kinds of titles that the following list may be the first time you're hearing about some of them. Other car title variations include the following list:
- Salvage title — This title type is given to cars with a huge value decrease due to theft or a major accident. Vehicles that have lost over 75% of their original value acquire this title.
- Rebuilt title — It's issued by insurers or the auto shop where the significant repairs were conducted. If it passes an inspection, vehicles with this title are safe for utilization on public roads.
- Junk title — These are given to cars sold to junkyards and due to be used for scrap metal or parts. Some states deem junk and salvage titles to be the same.
- Bonded title — It's given to vehicles with missing ownership information. It assures the owner that they are monetarily protected if future claims arise. Bonded titles are valid for between three and five years.
- Reconstructed title — Like a rebuilt title, it's given to cars that have undergone considerable repairs or transformations. The difference is that they can be registered for normal use after passing safety inspections.
- Water damage title — Any cars with water damage get this title type. The damage could be caused by a flash flood, thunderstorm, hurricane, or another natural disaster.
- Affidavit title — It's provided under an affidavit in specific circumstances when the car's documents are lost.
- Dismantled title — Like a salvage title, it's given to vehicles that are damaged beyond repair or when any repairs wouldn't make financial sense.
- Odometer rollback title — It's provided to vehicles with odometers that have been illegally turned back to display fewer miles.
What Are The Benefits Of Having A Lien-Free Vehicle Title?
The main benefit of having a lien-free vehicle title is you can sell the vehicle with ease later on. And if you need quick money to help you handle an emergency expense, you can come to Cash Cow to use your vehicle title for a vehicle title loan. With a vehicle title loan, we are using your vehicle’s lien-free title as collateral to secure the loan, and we also use your vehicle’s overall condition to determine how much we can lend you.
This loan can be useful for funding emergencies like medical bills, veterinary fees, same-day urgent travel, home repairs, and so on, especially if you have a less-than-average credit score. Plus, you can easily begin the process through the online form on our website. From there, one of our trustworthy representatives will quickly give you a call to go over the required items you’ll need to get through the rest of the process.
This phone call will include setting up the vehicle inspection so we can determine its condition and how much we could lend you if you are approved. We will also assess your title and driver’s license or state-issued ID to determine if you qualify for approval. All of this can happen either at the nearest store or at another location of your choosing. If you are approved for this loan, you could get the money either on the same day or the next bank business day.
Get A Vehicle Title Loan With Us Today!
Knowing the details about your lien-free vehicle title is important. Once you understand whether your title is lien-free or not, you will know what you can understand what financial options are available to you. This is vital especially if you need a vehicle title loan to help you with your emergency expenses! So, if you need between $300 and $1,400 to fund an emergency, fill out the online form to begin our simple and quick process.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.