Can You Get A Title Loan On A Car That Is Not Paid Off?

When you are struggling to make ends meet, you might look for title loans on your car. Though almost any car is eligible for a title loan, it is possible that your car is not paid off yet. So, can you get a title loan on a car that is not paid off?

Is it Possible to Get a Title Loan for a Financed Car?

While it is possible to take out a loan on a car that is not paid off, meeting the qualifications does not guarantee approval. Lenders will consider your equity, creditworthiness, and other factors.

There are certain qualifications that you may have to meet, including resale value and equity, in order to get the title loan. Your automobile must have equity to be eligible for the loan. In addition, the resale value of the car should match the minimum resale value set by the lender so you can get the best deal.

Getting a Title Loan on a Car that is not Paid Off

The title of your vehicle is crucial if you are considering title loans. A financed car, however, might mean the lender has a vested interest in the car, and it is a complicated process that involves you offering collateral that takes your full ownership.

Some lenders might accommodate these situations, depending on the current value of your vehicle and the remaining balance on the loan. In other words, your vehicle’s market value should be higher than the outstanding loan balance.

The title loan company will probably settle the outstanding balance with your original lender and then apply any remaining funds to the new loan. Simply put, the title loan company will refinance your car, followed by extending you a loan against your car’s title.

When you are applying for a title loan on your financed car, it is crucial to consult the potential lender beforehand. Lenders have different requirements and policies, and it is entirely possible for them to not accept a car that is still being financed as collateral. On the other hand, some lenders are willing to state the outstanding balance and extend a new loan against the title.

How to Secure a Title Loan on a Financed Car

You may be able to secure a title loan on a financed car by following these steps:

  1. Conduct thorough research on title loan lenders, checking their policies regarding the financed car and looking for companies that accept them as collateral.
  2. Discuss your specific situation with potential lenders and consult them, making sure you comprehend their terms and conditions.
  3. Submit your application and include the necessary documents as proof of income, driver’s license, etc. You should include the vehicle’s model, year, mileage, condition, and more.
  4. Once your loan is approved, the lender will probably pay off the existing lien-holder and transfer the title of the vehicle to the new lender.
  5. The remaining funds from the title loan will be available to you after the previous loan is satisfied.

Final Word

While it is possible to get a title loan for a car that is not paid off, there are certain requirements, and not every lender accepts them. You should do your research and consult the potential lenders to make the decision!

Advantage Finance LLC is here to help you and provide title loans to those eligible. Dial (281) 410-5337 to contact us!

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