Auto Loans and Title Transfer

You could be looking to purchase a new car or a used car, but you might not have enough saved up to buy it outright. If this is your current scenario, you could opt for an auto loan in Portland, Hillsboro and Beaverton to help you finance your new automobile. There are many ways of obtaining this loan for individuals. You have the option of getting financing from a bank, going to your credit union, or you could choose to go to private lenders to receive the principal sum amount for your loan.

All the available options come with a date and model for repayment, along with certain interest rates that you have to pay. These details are always drafted in the auto loans repayment document, which is an important agreement necessary to make the loan agreement official. Banks and other financial institutions will take care of the document verification process and make the loan agreement official and legally binding. If you are choosing to take the loan from a private lender, it becomes imperative to make the auto loan agreement an official one by enlisting the help of a notary.

[expander_maker id=”1″ more=”Read more” less=”Read less”] The main reasons as to why it is crucial to do so is because:

● Private money lenders are not otherwise contractually obliged to follow the terms stated in the agreement. This means that they will have the power to change the loan repayment terms as and when they please if the deed has not been made official. They could change the rate of interest you are charged, change the dates of the repayment, and more. There is nothing stopping them from changing the agreement between both parties unless all the documents have been notarised.
● Automobile vendors also typically require a loan agreement to make their sale official, especially if you are making the purchase from an official dealership. It will be listed as one of the prerequisite documents you need to submit if you are financing your car from elsewhere.
● If you have an official auto loan agreement, you have all the details of your contract in writing, safeguarding you from potential lawsuits.
● Also, an official auto loan agreement acts as proof that the money you have received is a loan and not a gift. This is important and necessary for when you are paying your taxes because the principal amount and the interest you are paying for it becomes tax deductible and the loan money you have received does not show in your statements as a gift or an income.

A title transfer document for a vehicle is an official deed stating that the car has been purchased by another individual and it is not in the primary owner’s name. It is important to get an official title transfer document in Portland, Hillsboro and Beaverton for both the previous owner and the new owner of the vehicle.

The main reasons why it is necessary to involve a notary and make the title transfer document official include the following:

● All the liabilities and legalities that come with the car will be transferred to the new owner. It means that the original owner will not be held responsible for anything that happens to the car after the title transfer document has been signed and authenticated by the notary.
● As an owner of an automobile, you could be selling your car to a private car reseller or an individual. If you are selling it to a dealership or a reseller, they will need the title ownership of the automobile so that they can transfer it to the future owner of the vehicle.
● The title transfer document is also a necessary document required by the DMV to update the registration of the vehicle in their records. As a vehicle owner, you are required to submit the title transfer document along with other car registration documents to the DMV to make your ownership official.
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