How to Estimate the Equity in Your Car
As a vehicle owner, it probably is not an everyday occurrence for you to consider what your car is worth. Owning a car is a valuable resource, because you can easily use it to get a car title loan wherever you need to be quickly.
But did you know that your car is also a monetary asset?
It may not be obvious that your vehicle has an equitable value. You may be able to use this equity for acar title loan if you are ever in need of financial assistance, such as you being rejected for a loan for bad credit. If you are in need of some quick cash to pay bills or due to an unexpected expense, using that equity to apply for a car title loan may be a smart choice.
Here are a few steps to help you find the value of your car.
What is your car worth?
Learning the value of your vehicle is not a complicated process. To begin, you need to know the year your car was made. The newer it is, the more likely it is to have a high black book value.Next, you need to find the manufacturer, or make, and model, or the specific type of car. If you don’t know this information already, it is listed in the driver manual of your vehicle.It is also important to note whether you have the stock model option or what is known as a trim model. A trim model generally has upgrades beyond what is in a base model. So if you sprung for self-heating leather interior and sunroof, you should take such amenities into account when making your overall estimate.
What is its history?
Both the number of accidents you have had while owning your car as well as the total collisions your car may have seen previous to you owning it must be accounted for.
This is directly related to the number of insurance claims filed with your car. Whether you are responsible for the accident or not, any activity involving your insurance company can affect the overall worth of a vehicle.The number of claims a vehicle may also decrease its overall equity whenborrowing using your vehicle. The damage the car has had due to collisions will decrease its overall worth. Remember, a smart way to avoid accidents is to drive defensively.
If you ever need to use your car title to apply for a financial loan, a qualified title loan officer will also generally note how many owners the car has had before you. If your car was new when you bought it, you should be able to get a higher loan than if it went through a dozen owners before you.
Certification and emissions
The general safety of your car is important, and in order to maximize its worth, the vehicle needs to be up to date with its certifications and emissions. If it is time to perform service on your vehicle, make an appointment with a local auto shop before bringing your car in for a loan estimate.
If you need to discover more information on vehicle valuation, visit Canadian Black Book or contact us at Prudent today.