Do I Own My Car When I Have an Auto Title Loan?

An auto title loan can be a great solution to an urgent financial emergency. By using your car as collateral, you’re able to get more money than you would through a payday or pawnbroker loan.1 But does this mean the lender now owns your car?

How is a Car Valued for an Auto Title Loan?

When you take out an auto title loan, the lender will value your vehicle and make you a loan offer, based upon how much they think it’s worth. This value will depend upon a number of factors, including:

  • The vehicle’s manufacturer
  • The vehicle’s age
  • The vehicle’s model
  • The vehicle’s mileage
  • The vehicle’s physical condition

Each of these factors could have a significant impact on the loan amount the lender is willing and able to offer you. For example, a Mercedes-Benz is typically worth more than a Honda, but that isn’t always the case. If the Mercedes is fifteen years old with 200,000 miles on the clock and the Honda is only a year old with 10,000 miles, then the opposite might be true.

The amount you can borrow may also vary from lender to lender, as each one will have their own guidelines for the amount they’re able to loan, so it can sometimes be worth shopping around for the best offer.

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What Does It Mean to Have a Lienholder on the Title?

Once both yourself and the lender have agreed to the loan, you’ll sign the agreement and the lender will then add themselves as a lienholder on the title. While it doesn’t mean they own your vehicle, there are a few things you should be aware of.

Firstly, because you owe the lender money, you won’t be able to transfer ownership of the vehicle until the loan is repaid. The DMV won’t allow you to remove yourself as the owner of the vehicle if there’s a lienholder, as you still owe the lienholder money.

Unless you can find a buyer who’s willing to pay off the loan for you, you’ll need to pay off the loan in full before attempting to sell the vehicle.

Alternatively, if you need more money but need to also keep the car, you could find a lender who can pay off the existing lienholder for you. Realistically, this can only be done if your vehicle has enough value and, of course, the second lender will now have their own lien on the title.

Since the lender has a stake in your vehicle, they’re entitled to any insurance payout if your car is written off.

Lastly, be aware that the lender has the legal right to repossess your vehicle if you fail to make your loan payments. If this happens, they’ll most likely sell the vehicle at auction in an attempt to recover the money you owe.

The laws may vary by state, but you should have the opportunity to pay what you owe before the car is sold.

If the vehicle sells for more than what is owed, you may get a check from the lender for the difference. However, if the vehicle sells for less you may still be liable for the remaining balance. This means the lender has the right to pursue further collections activity, which may include legal action.

Again, the laws will vary by state; some states don’t require the lender to pay you the difference while in other states it’s illegal for the lender to attempt to collect any money you still owe.

Which Lender Should I Trust for an Auto Title Loan?

There’s a bewildering array of auto title loan lenders on the market and it can be hard to know which ones are the best. However, there’s one option that’s been available for years and has helped people all over the United States to get the emergency funds they need. And it offers some outstanding additional benefits you may not be aware of.

A ChoiceCash Auto Title Loan, serviced by LoanMart, not only offers competitive rates and funding amounts, but has also been designed with the borrower in mind.1 For starters, the application process is quick and easy and can be completed within 24 hours or less – and often on the same day!1 In fact, the entire process can be completed online and without ever leaving the comfort of your own home.

For example, you can find out in minutes if you qualify for a loan – and how much you qualify for – by visiting www.choicecash.com or calling 855-277-4847 toll-free.1

Also, some lenders may require you to drive to a physical location for an on-site vehicle inspection, but with a ChoiceCash Auto Title Loan you can submit images online, via email or even by texting them in. Once your loan specialist has reviewed and approved your application, you’ll need to sign the loan agreement. This can be completed online in minutes via DocuSign.

It then only remains for you to get your money. You can choose to have it deposited directly into your bank account or, if you’d prefer, you can pick up your cash at a nearby MoneyGram location.

What Are the Other Benefits of a ChoiceCash Auto Title Loan?

Besides an easy application process, a ChoiceCash Auto Title Loan, serviced by LoanMart, offers a key benefit that’s hard to find elsewhere. With other lenders you make the same monthly payments, often for years, until the loan is fully repaid.

That’s not the case with a ChoiceCash Auto Title Loan. When you make your regular monthly payments on-time, the loan’s interest rate can be reduced.2 This has the knock-on effect of dropping your monthly payments.2

Make your next monthly payment on-time and you could see your payment drop even further.2 Continue making your payments on-time and you could see your monthly payment nearly cut in half throughout the lifetime of the loan.2

What if you need more money in the future? With a ChoiceCash Auto Title Loan, serviced by LoanMart, you could potentially have access to more cash – and at the same low rate of interest you’ve worked hard for.

If you want to pay off your loan early, you can do that too. A ChoiceCash Auto Title Loan has no prepayment penalties, closing fees or balloon payments. You only need to pay the outstanding balance on your loan.

An easy application process, payments that can go down and the potential to borrow more in the future. It’s easy to see why a ChoiceCash Auto Title Loan, serviced by LoanMart, is fast becoming the preferred loan option for borrowers across the nation. Don’t wait – visit www.choicecash.com or call 855-277-4847 toll-free and you could be holding your cash in your hand TODAY!1

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