What To Do When The Car You Have A Title Loan Against Blows Its Engine
If you have a title loan against your car and it experiences engine failure, you have a couple of options to consider. Your choices will depend on whether or not you are able to repair the car's engine. Follow these tips for making choices about a car you have a title loan against that is sitting on the side of the road with a blown engine.
Contacting The Title Loan Company Is Important
If your car is stuck on the side of the road with a blown engine and you have a title loan against, you may wonder what to do about it. You may not consider the title loan at first because you are trying to figure out how to get you and your car home. If your car's engine is blown, there are no quick fixes available to allow you to quickly drive it home. When a car's engine blows, it is time to call a towing company. However, if you cannot afford a towing fee, your next step is calling your title loan company.
To Pay For Repairs Or Not To Pay For Repairs
Alerting your title loan company that your car is inoperable is important because if you are unable to pay for repairs, you will need to decide whether or not to finish paying your loan. Your title loan company will tow the car for you, but it will go with them. The title loan company will then figure what the car is worth with a blown engine and subtract that much from the figure you still owe on the loan. The remainder left after the car's worth is subtracted is the amount you will still need to pay to your title company. Comparing this figure to the amount you may have to pay for replacing your car's engine is a good idea. If the cost of replacing the engine is a lot more than what you would have to pay off in your title loan, the choice is clear which one would be the best way to go. Either way, you will still need to get another car for getting around because it can take a while to completely replace an engine.
You may feel frustrated and worry about what will happen to you if the car you have a loan against is inoperable. However, by contacting the title loan company and letting them know what has happened, you will not have to worry about being in default of your loan and ruining your credit score. For more information, talk to a professional like Flexible Finance.