What alternatives are there to finance a car title loan?


Today there are different products that will allow us to finance the purchase of a car, both in banks and in dealerships, we explain what are the car title loan:

  •  Personal loan with the bank
  •  A loan with the dealer’s financial company
  •  Leasing
  •  Renting

Loan: linear financing

It is the simplest financing model. In this case, the finance company (a bank, a dealer, a financial credit establishment …) grants us a car title loan that allows us to buy the car and pay it in comfortable installments at an agreed interest, for a period of time that can last up to eight years. The capital of the credit can cover the entire cost of the vehicle with the loans to finance a car without entry or only a part, in which case the so-called entry will have to be paid.

‘Leasing’: flexible financing

The option of leasing, also called financial leasing, we will find more often in dealerships, since banks generally offer it only to businesses. In this case, only part of the price of the car is covered, so the installments to pay are lower. When the term ends, which is usually five years, we will be given the following options :

  • Pay what is left to keep the vehicle
  • Return the car to the dealer
  • Sign a new leasing contract to acquire another model

Certain car finance companies include other additional services in the contract, but it is important to know that these are paid separately and that, therefore, they will increase the final price of the operation.


The renting is nothing but the long term rental of the vehicle. As it is a rental, we will not have to pay the entrance of the car and it is the dealer who remains the owner of the vehicle. In addition, the monthly fees will be lower and will include other expenses such as registration tax, insurance, and living.

However, this alternative car never is ours and at the end of the period (generally three years) we must decide if we return the vehicle or extend the contract of renting.

Through a car title loan

You can opt for a benefit from a bank, credit, or a certain financial company. In these cases, it is agreed to pay the amount provided plus the accumulated interest in a time indicated in the contract. Among the benefits derived from this modality are:

Know the clauses of the agreement before approving it: With this modality, you can know the investment, the interests, and the clauses that will apply at the time of making the purchase.

Find the best alternatives: You can visit various companies to contrast, inquire about credit processes and payment terms that best suit the user.

When you opt for this type of financing, you use the money contributed by the company to settle the price of the car to the seller. In this way, the commitment generated is with the lender.

Documents to obtain a vehicle loan

1.- ID of the Holder and spouse

2.- Receipt of services (electricity, water, or telephone).

3.- Payment schedule (Personal or Mortgage Loans)

4.- Present the Credit Card Account statement (the debt must not exceed S. / 5,000)

5.- Present income support according to the type of income.

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