Can You Use a Classic Car as Collateral

You’re in the market for a car title loan to get you out of a financial jam. After all, such loans are much easier to get than traditional bank loans, and all that’s basically required for one is a vehicle and income. You have a job, so income’s no problem. But the only ride you own is a 30-year-old Mustang. You may be wondering; can you get a title loan on a classic car?

The answer is … yes! As long as the vehicle has sufficient value, it can be used to secure a title loan. Here’s what else you need to know.

What is a Car Title Loan?

These are short-term loans of around 30 days, although longer terms are sometimes available. You’ll have to relinquish your vehicle’s title until you repay the loan, plus interest. However, you do get to keep and drive your car while you’re paying off your loan. Just be 100% sure you can give the lender back its money, or risk having your car seized and sold.

What Do I Need to Get One?

Eligibility varies by lender and region, but you’ll primarily need a vehicle in your name. In addition to newer vehicles as well as classic cars, trucks, motorcycles, and RVs also typically qualify.

You aren’t usually even required to bring the vehicle in for inspection. But you do have to submit quality photos of it from all angles, plus clear shots of the odometer and vehicle ID number.

The other big thing you’ll need is income, which doesn’t necessarily mean from a job. Social Security, pension income, worker’s compensation, rental income, retirement fund income, income from child support or disability, etc., may also be accepted. You’ll need to show proof, usually in the form of pay stubs or bank statements.

How Much Can I Borrow?

That will depend upon your income and the make, model, and overall condition of your car. It will also depend upon the year of your vehicle, but remember: classic vehicles with enough value will usually be accepted. Other factors may include the vehicle’s style and whether it’s been altered or modified.

Is There Anything Else I Need?

You must be at least 18 years old, have a driver license, passport, or state-issued photo ID, and be able to show proof of residence such as a utility bill or lease agreement.

What you won’t need is good credit. While a lender may run your credit history, that won’t be the deciding factor. After all, the lender knows you have income and will have your vehicle title as security.

How Fast is the Turnaround?

Very fast. You can submit your application, including all documents, totally online. After you do so, you’ll typically get an answer that day. Once approved, you can have money in hand within 24 hours.

You’ll have options regarding how you want to receive your funds. You may be able to have your loan deposited directly on a debit card, for example, or have funds transferred to a bank account. Some places can send you an overnight check or will arrange for a cash pick up at an area MoneyGram location.

In Summary

So, can you use a classic car as collateral? Yes. In fact, it happens all the time. You just need income to go with it. That’s vitally important, both in terms of getting the loan — and keeping your car.

With that squared away, you’re good to go with a crisis-averting title loan.