When looking to buy a new car, the cost is one of the first things to consider. Lenders will often offer cash-back rebates with car title loans. “Cash-back” means lenders can offer extra money when you take out a car loan to motivate a vehicle purchase.
Although cash back sounds like a sales tactic, it can also be worthwhile depending on your situation. But how do you know if what you are being offered is a trap or a great deal?
In this article, Cash Loans Alberta will look at several key factors to determine if cash-back car loans is something you should consider.
What Does “Cash-Back” Mean?
Going with a car title loan is an option for Albertans when it comes to buying a car. Cash-back is something lenders offer.
In addition to the car’s cost, cash back offers extra credit you can use to purchase the vehicle. Dealerships can offer cash-back to help customers liquidate their other financial debts. The dealership can combine those other debts at a lower interest rate when you purchase the vehicle.
Using Cash-Back to Your Advantage
Keep in mind that your cash-back rebate is not money you can spend on anything. While there are ways to come out ahead financially, here are a few factors to consider:
- Down Payment – A cash-back car title loan can help with a down payment using your rebates. But be careful when purchasing a vehicle that you don’t end up owing more than the car is worth, as it will cost you far more down the road.
- High-Interest Debt – If you pay an interest rate higher than your car title loan rates, we recommend paying off that debt with the money you get as cash-back. If you are eligible for a substantial rebate, you can down an expense or debt with a higher interest.
With cash-back, remember that you must also pay sales tax as it is part of the car title loan contract.
Refinancing for Cash-back
Refinancing your car title loan is an option if you need emergency cash, especially if you are stuck with a high car payment. You would be borrowing against your vehicle’s equity, but if your car’s value exceeds the balance remaining on your loan, you may be able to tap into that equity.
Why Cash Loans Alberta?
These are the key things you need to know about cash-back loans, but if you have any questions, call us anytime at 587-742-0507.
Here at Cash Loans Alberta, we are sympathetic to your circumstances. And this empathy is why we provide the advantages that other equity loan lenders dismiss. Instant approval for the loan you require, doesn’t matter whether you have good, bad or no credit!
You can apply for an application online today!
