People in financial straits often do not know where to turn to solve their problems and, as a result, act out of desperation and make poor choices. I have written on this site of one example, the “pay day loan,” but there are many others, including the “car title loan.” The problem with this type of loan is the same as the “pay day loan”: exorbitant interest.
Don’t do it! Lots of legitimate banks in New Jersey will make a secured loan to you with your car as collateral. Even if your credit rating isn’t all that good, you will not pay rates approaching anywhere near what these companies charge. If you are going to consider this, proceed with caution and ask lots of questions about the interest rate.
Be sure that they give you the rate expressed as an APR (Annual Percentage Rate). Also, be sure only to deal with a company in New Jersey, so that they will be subject to our usury laws to keep the rates reasonable. You may end up paying 29%, but it is better than over 100% in many places!