How a title loan amount is worked out
The CFPB says the vehicle's value is the primary consideration for the amount that can be borrowed on a vehicle title loan, and that the title generally must be owned free and clear. This calculator takes the vehicle's value and the share of it a lender will lend. A $4,000 vehicle at 50% is $2,000.00: ChoiceCash uses the same example in its guide to title loan estimates.
The 50% is one lender's illustration, not a standard. Each lender decides its own share and appraises the vehicle itself, so enter your lender's figure and a trade or retail value you trust, for example from Kelley Blue Book.
If you still owe money on the vehicle
Most lenders want the title free and clear, though the CFPB notes some will accept a second lien. If you owe money on the vehicle, this calculator takes it off as an estimate. A $12,000 vehicle with $5,000 owed at a 50% share gives $1,000.00, and your equity in the vehicle is $7,000.00. The estimate is not an offer from any lender.
A state or lender cap
Many lenders and states cap the loan, and the caps differ by state. This calculator does not hard-code any state's limit: if you know a cap, type it in. A $20,000 vehicle at a 60% share would support $12,000, but a $6,500 cap gives $6,500.00. Check your state regulator or lender for the figure that applies to you.
What the loan would cost
A title loan is typically a single payment due in about 30 days. The CFPB's 2016 report on single-payment vehicle title lending found 30-day terms, annual percentage rates around 300% and a median loan just under $700. A fee of 25% for 30 days on the example loan is $500.00, so you would pay $2,500.00 after 30 days. Multiplying the fee by 365 and dividing by 30 gives a simple annual rate of 304.17%. Enter your lender's fee in the last field: the 25% is only an example.
The same report found that over 80 percent of loans were reborrowed on the day a previous loan was repaid, and that one in five loan sequences ended with the borrower's vehicle being repossessed. A title loan puts your vehicle at risk.
To see the cost of renewing, use the title loan payoff calculator.
Check against a published figure
The CFPB's data had a median loan of $694. At a 50% share, a vehicle worth $1,388 supports $694.00, which suggests the median title loan is made on a low value vehicle.
Use the right country page
A title loan is a US product, with state rules and a single payment after about 30 days. In the UK the equivalent is a logbook loan, secured by a bill of sale and repaid weekly.
For the UK product, open the logbook loan value calculator.
Inputs for the title loan value calculator
Value of your vehicle
What the vehicle is worth, for example a Kelley Blue Book value.
Still owed on the vehicle
Finance still owed on it. Most lenders want the vehicle owned outright, so enter zero if it is.
Most the lender will lend, as a share of value
Each lender decides this. 50% is one lender's example, not a standard.
Maximum loan your state or lender allows
A cap on the loan from your state or lender. Enter zero if you do not know one.
Fee for a 30-day loan
The fee as a share of the loan, from your quote. The 25% shown is only an example.
CALCULATOR QUESTIONS
US title loan value calculator questions
How much can I borrow on a title loan?
It depends on your vehicle's value and the lender. At a 50% share a $4,000 vehicle supports $2,000.00. The lender decides after an appraisal.
What if I still owe money on my car?
Most lenders want the title free and clear. Some accept a second lien, and this estimate takes what you owe off the amount.
Do states cap title loans?
Caps and rules differ by state. This calculator lets you enter a cap if you know yours rather than assuming one.
What does a title loan cost?
A 25% fee for 30 days on $2,000.00 is $500.00. The CFPB reported annual percentage rates around 300% in its 2016 data.
Can I lose my car?
Yes. If you do not repay, the lender can repossess and sell the vehicle. The CFPB found one in five loan sequences ended in repossession.