Can You Get a Title Loan on a Financed Car? If you are like most people, you financed your vehicle when you purchased it. Until the loan is fully paid off, the lender holds a lien on the title. But what if you need fast cash and are considering a Best Auto Title Loans online? […]
Can You Get a Title Loan on a Financed Car?
If you are like most people, you financed your vehicle when you purchased it. Until the loan is fully paid off, the lender holds a lien on the title. But what if you need fast cash and are considering a Best Auto Title Loans online?
The good news is that you may still qualify for a title loan even if you’re making car payments. Let’s explore how title loans on financed vehicles work, what to expect, and alternative options to consider.
👉 Related: Learn about title loans after bankruptcy if you’re struggling with finances.
How to Get a Title Loan on a Financed Car
The steps to getting a title loan on a financed car are similar to getting one on a fully paid-off vehicle.
Steps to Apply for a Title Loan on a Financed Vehicle
1️⃣ Apply online or visit a title loan location near you.
2️⃣ Submit the application and provide required documents.
3️⃣ Schedule an inspection or send photos of your car.
4️⃣ Get approval and receive funds—often within one hour.
📌 Tip: Looking for fast approval? Check out our instant cash loan guide for quick financing options.
How Much Money Will You Receive?
You May Not Keep the Entire Loan Amount
If your car still has an outstanding balance, the lender may pay off your existing loan first and give you the remaining amount.
Example of Loan Distribution
🔹 Approved Loan Amount: $5,000
🔹 Remaining Car Loan Balance: $2,000
🔹 Cash You Receive: $3,000
📌 Good to Know: Once the loan is repaid, you’ll fully own your vehicle, making it easier to get another auto title loan if needed.
Title Loans vs. Auto Equity Loans
What’s the Difference?
- Title Loan: The amount you borrow is based on your car’s total value.
- Auto Equity Loan: The amount you borrow is based on your equity in the vehicle.
👉 If you’re interested in an equity-based loan, explore auto title loans for medical emergencies for urgent financial needs.
Do You Still Own Your Car?
Yes, But With a Lien
Even though the lender places a lien on the title, you can still:
✔ Drive your vehicle as usual
✔ Use it for work or personal use
✔ Sell or trade it (as long as you repay the loan)
📌 Considering selling? Learn how to sell a car with a title loan before making a decision.
Refinancing a Title Loan on a Financed Car
Can You Refinance a Title Loan?
Yes! If your repayment terms are too difficult, refinancing can:
✔ Lower your interest rate
✔ Extend your repayment period
✔ Reduce your monthly payment
🔹 Related: Learn about title loan refinancing to see if it’s a good option for you.
Car Title Loan Requirements
A car title loan is a secured loan, meaning it does not require a credit check. Instead, approval is based on your vehicle’s value and ability to repay.
General Eligibility Requirements
✔ You must own a car (even if it’s financed).
✔ You must be at least 18 years old.
✔ You must be a legal U.S. resident.
✔ You must have verifiable income.
🔹 Need a loan but don’t have proof of income? Learn about title loans without proof of income.
Car Title Requirements
The title must be in your name and the car should be fully paid off or close to being paid off.
What If You Have a Salvage Title?
Some lenders offer salvage title loans if your car is in good condition.
📌 Tip: If you’re unsure about your car’s title status, check our vehicle title verification guide.
Pros & Cons of a Title Loan on a Financed Car
Advantages
✔ Quick access to cash
✔ No credit check required
✔ You keep driving your car
Disadvantages
❌ Higher interest rates than personal loans
❌ Risk of repossession if you default
❌ Not available in every state
📌 Before applying, compare options. Learn about alternative emergency financial solutions.
Final Thoughts
A title loan on a financed car is possible, but you must understand the risks before applying. Always:
✔ Borrow responsibly
✔ Only take what you need
✔ Explore refinancing options if needed
📌 Looking for more financial solutions? Visit Best Auto Title Loans today!
