Navigating car title loans can be tricky, especially when you’re making payments on your car. But don’t worry—it is still possible. However, there are certain requirements and steps to walk through to secure a title loan. We’ll cover everything you need to know while pursuing a title loan on a financed car with confidence.
Can You Get A Title Loan On A Financed Car?
The answer is yes—you can get a title loan on a financed car. The key is that you must have some equity in the vehicle. Lenders usually assess your car’s value and the amount you owe on it to determine your loan eligibility. We recommend you thoroughly understand the loan terms and impact on your finances before proceeding.
Financed Car Title Loan Vs. Title Loan
A financed car title loan is a secured loan that lets you borrow money using a car that still has an outstanding loan. Unlike a standard title loan, the amount you can borrow might be influenced by your existing loan terms. Both loans need the vehicle’s title as collateral. However, a financed car title loan involves additional steps due to the existing loan balance and lender requirements.
Title Loan Tips If Your Car’s Not Paid Off
Here are essential tips to follow if your car isn’t completely paid off:
- Check Your Loan Balance: Know how much you owe on your current car loan.
- Understand Your Equity: Assess your car’s value and the remaining loan amount.
- Review Your Loan Terms: Be aware of any conditions tied to your existing loan.
- Gather Documentation: Prepare documents like a car title, income proof, ID, etc.
- Review Repayment Plan: Plan how you will manage the repayment of both loans.
- Apply Your Title Loan: Submit our request form to process your auto title loan.
Checklist For A Financed Car Title Loan
When securing a title loan on a financed car, you’ll need to meet these requirements:
- Title Ownership: The car title must be in your name, even if there is an existing loan.
- Proof of Income: Submit pay stubs or bank statements to prove your repaying ability.
- Vehicle Inspection: Allow your vehicle’s inspection to determine its current value.
- Valid ID: Provide a government-issued identification card to verify your identity.
- Insurance Proof: Provide documents showing full insurance coverage for your car.
- Loan Status: Share all the details of your outstanding loan balance and lender details.
Is A Title Loan Worth It If You Still Owe?
A title loan on a financed vehicle can be worth it if you need same-day cash and understand the terms. However, it’s crucial to ensure you can handle the additional payments without risking your vehicle. We recommend you use this option primarily for emergencies to avoid financial strain.
Wrapping Up!
In a nutshell, the answer to “Can I get a loan on my car if I still owe on it?” is definitely yes. Securing a title loan on a financed car involves understanding your current loan balance, equity, and lender requirements.
By following these tips and ensuring you meet all the necessary criteria, you can successfully get a title loan even if your car is not fully paid off. Tackle your emergencies with same-day cash access near you.
Frequently Asked Questions
Can Existing Loan Terms Affect My Title Loan Approval?
Yes, existing loan terms can impact title loan approval. Lenders will review your current loan balance and the amount of equity you have in your vehicle. If your car’s value is lower than what you owe, it may affect your eligibility for a title loan.
Will Getting A New Title Loan Affect My Credit Score?
A new title loan typically does not impact your credit score directly since it’s based on your vehicle’s equity, not your credit history. However, missed payments or defaults could indirectly affect your credit score if reported to credit bureaus.
Can I Consolidate My Existing Loan With A New Title Loan?
Consolidation of your existing loan with a new title loan may be possible, depending on lender policies. Most title lenders offer consolidation options, allowing you to combine your existing debt into a new loan.
Will My Current Lender Be Involved In The New Loan Process?
Generally, your current auto loan lender will not be directly involved in the new title loan process. However, they need to be informed of the new title loan if there is a lien on the car. The title loan companies will often work with you to handle the lien release or payoff process.
What Happens If I Can’t Repay My New Car Title Loan?
Title loans use your car’s title as collateral, so if you can’t repay your new car title loan, the title lender may repossess your vehicle. It is advised to ask your title loan company for options to avoid repossession.
How Will Taking Out A Second Loan Impact My Finances?
Taking out a second loan will increase your financial obligations. It’s essential to ensure you can manage both loans’ repayments within your budget.
