Used car industry growth could lead to more title loans

Title lending, or the use of a car title as collateral for a loan, has been a relatively popular process for many Americans in recent years. However, the auto industry has undergone substantially turbulent times since the Great Recession, and the landscape continues to change regarding the purchases of automobiles. TIME Magazine recently reported that used car sales might be on the rise following higher values of depreciation in the coming years. According to an ALG Industry Report, car values are expected to drop an average of 4 percent to 5 percent over the course of the next year or so, which would be good news for both used car dealers and prospective buyers. The news provider added that used car sales have dropped steadily since January, while total purchases in the industry hit their highest amount in 2010. The depreciation effect on used cars is expected to translate to 8 percent to 10 percent lower costs on the vehicle, which would further enliven the used car auto industry financing world. Title loans are often used for used car purchases, while the buyer will put his or her car title up as collateral for the lending opportunity. These loans are generally short-term and come with higher interest rates than other counterparts, though they are quicker to obtain and can be as low as $100.