Life is known to be unpredictable. With all the crazy twists and turns it throws at you, it’s not all that uncommon to run into financial difficulties when you least expect it. But during such challenging times, the only thing that you need is a quick solution, a way out of the mess. Car title loans are exactly that. They’re like a beacon of light, guiding you towards a path of financial freedom, all by leveraging your car for instant cash.
But have you ever wondered how many times you can actually get a car title loan on the same vehicle? If you’re thinking of temporarily giving up your car ownership for a title loan, it is important to know how many times you can utilize it. In this blog, you will find the answer to just that, so let’s get to it.
What is a Car Title Loan?
Car title loans are short-term loans that are taken out by leveraging your car as collateral. The lender is given temporary title and ownership of the car, all in exchange for a hefty amount. During this time, the possession falls in their hands. However, you are free to use the car as you were supposed to until the payment date arrives.
In most cases, the loaned amount of money is typically a percentage of the car’s value. That is to say, if the car’s overall value is $5,000, you are liable to take out a loan for as much as $3,000 or $2,0000.
A car title loan may be helpful, but it does have complications, especially for those who are unable to meet the payment deadline. For instance, if you fail to pay back the lender on time, they have the right to repossess your car and sell it off to get their money back, including both principal and interest.
How Many Times Can You Get a Car Title Loan on The Same Car?
The good thing about car title loans is that you can take them out whenever you want, even on the same car. However, it is important to keep in mind that you first need to be able to pay back the initially borrowed money, along with interest.
Additionally, you also cannot get two or more title loans on the same car at the same time. It is only when you recover from the first loan you can go ahead and get another, putting up the vehicle as collateral once again.
This is because when you get a title loan the first time, the lender adds a lien tag to the car’s title. It essentially serves as a mark indicating that the car’s title is not free but under wager. Thus, if you feel like getting yet another loan after the first, you will be required to have a clean title, with no tags compromising your ownership of the car.
Ultimately, you can get as many car title loans as you want using the same vehicle. But for that, you need to pay off one loan before getting another. Getting two or more loans at the same time is prohibited, and most lenders avoid going down that route at all. Nevertheless, for more information on the matter, reach out to Advantage Finance LLC at (281) 410-5337. You can also visit us at 616 Fm 1960 West #680 Houston, TX 77090, near the 45 and FM 1960 in Chase Bank Building.