Can You Get a Title Loan on a Financed Car?
Do you need cash but you’re still making payments on your car? Use your car as collateral for emergency funding! Your car title could help you unlock quick funds. The flexible thing about online title loans is that even if you are making car payments or have bad credit, you can get approved for funding. Apply for car title loans on financed cars and get access to the financial help you need!5
You can begin your loan inquiry online or over the phone with a Max Cash Title Loan agent today. Start by dialing 855-561-5626.2
How Can You Get Title Loans for Cars Not Paid Off Yet?
Title loans are a type of secured loan option, so they can be much more flexible than traditional loans. The borrower will use their vehicle’s title as collateral for the loan. Essentially, title loans work by allowing you to borrow against the value of your vehicle. The title loan amount and eligibility are primarily determined by the value of the car, as well as the borrower’s ability to repay the title loan and their earnings. One of the best parts about a title loan is that things like your credit score won’t be the biggest factor that a title lender will consider during your loan application!5
If you want to get a title loan while still making payments on your car, let’s talk about what a lien is. A lien on your car’s title indicates the lender or lienholder’s legal right to access your vehicle if you fail to repay the loan. If you purchase a new car and take out an auto loan, then your lender puts a lien on your car title and becomes a lienholder. This process is similar to car title loans, where the lender puts a lien on your vehicle title after the loan is complete. Vehicle titles may include the names and addresses of the lienholders, which may be lenders or financial institutions.
So what if you are still making payments on your car? Then, it likely has a lien from an auto lender. If you are approved for a title loan, your title lender will pay off your existing loan and become your new lienholder. Your new title loan amount will be used to pay off your existing auto loan. That’s how simple it is!1
What Happens When I Use My Car As Collateral for a Title Loan?
As mentioned above, when you use a financed car as collateral for a title loan your principal loan amount is used to pay off your existing car loan. Then, you can keep the remainder of the loan proceeds and repay them according to your loan terms. Whether or not your car is financed when you apply for a title loan, you are expected to stay on top of your loan payments.
When an asset is used as collateral for a loan, it means that the lender or financial institution has a legal right to the item until the loan is paid off. Borrowing against the value of your vehicle allows you to access emergency cash, but one of the potential disadvantages of secured loans is that repossession is a consequence of loan default.
Can I Get a Title if My Car is Not Paid Off Yet?
Unless you live in a specific state that allows you to hold on to your car’s title while financing it, no. You can’t get your title if the car is not paid off yet. You must live in a non-title holding state to have a physical copy of your car’s title while paying off the loan.
How Can a Financed Car Be Used as Collateral for a Loan?
One of the most important factors during your title loan application is the value of your vehicle. It is still possible to get title loans on financed cars! A car can still have a significant amount of equity even if you are making payments on it. In order for a financed car to be used as collateral for a vehicle-secured loan, it must have positive equity. A car’s equity can be either positive or negative. If a car has positive equity, that means its market value is more than what the person owes on their car loan.
Not sure if your car has enough value to qualify as collateral for a title loan? Don’t sweat it? Reach out to a title loan agent today by dialing 855-561-5626. Loan agents are happy to answer any questions you may have about applying for title loans on cars not paid off yet!5
How Does the Auto Title Loan Process Work For Cars Not Paid Off?
Before applying for a title loan on your car that you are still paying off, it will be helpful to know about the different factors that lenders will look at for eligibility during the loan application. Here is what the important variables are for loan approval during the application process:
- Your Income and Ability to Repay the Loan: A lender will consider your income and your ability to repay the loan. Many different types of income can be submitted! This includes pay stubs from an employer, bank statements, SSI income, etc.5
- Your Vehicle’s Eligibility: The existing loan on your vehicle will impact your ability to qualify for at title loan. Your car must have a qualifying amount of positive equity. This means that your car’s market value is worth more than what you owe on your car loan. When applying with a new lender, they will need to know the loan amount that you have left to pay, and factor in additional funds if applicable.1 5
Your credit score or credit history aren’t the biggest factors that determine your eligibility for vehicle title loans. This is one of the main reasons why people apply for these loans regardless of their credit score.
Still not sure where to begin when looking for a car title loan? Call us today and let the experts at Max Cash® Title Loans help you with the search! We are the #1 nationwide online title loan marketplace. We work hard to connect with people with vetted lenders all across the country.5
What Do You Need to Apply for a Title Loan on a Financed Car?
When applying for a car title loan on a financed car, you will need to provide several pieces of documentation. This list may vary depending on your state of residence and the lender you decide to work with. Below is a general look at what you will want to have on hand during your loan inquiry:5
- A Lien-Free Vehicle Title in Your Name
- A Valid Government-Issued Photo ID
- Proof of Income
- Proof of Residence
- Several Pictures of Your Motor Vehicle
- Valid Car Insurance May be Required
How Much Can I Get if I Use a Financed Car as Collateral for a Title Loan?
The amount of money you can get for your car will depend on a few different things, including the following:1 5
- Value of Your Car
- Your Income
- Length of The Loan
The value of your car is what largely impacts the maximum amount of money you can potentially borrow with a car title loan.
Lenders determine the value of your car by taking a variety of factors into consideration. For example, the amount of miles on the car. Other factors include the car’s make and model, condition of the interior and exterior, year, etc.
Your monthly income is used to calculate the amount of money you can afford to pay back each month. And finally, the length of the loan determines the size of the monthly payments. You should note that some states restrict the lengths of car title loans. This can impact the size of the monthly payment.5
If you are still financing your car, a portion of your total loan amount will be used to cover the amount you still owe on your car loan. This will impact the total amount of funding you can access through a car title loan while still making payments!1 5
Contact Max Cash Title Loans for a Title Loan While Still Making Payments Today!
If you want to apply for title loans on financed cars, contact Max Cash Title Loans today. We’re available seven days a week for your title loan needs. We also offer a quick online application form to make the process simple. Whether you live in Arizona or Mississippi, contact us today to learn more about how we can help you!2 5