With both cars and houses, a title is involved to prove and detail ownership. If you are looking to sell your car or obtain a title loan, you might be wondering- Do you get a title when you finance a car?
A few factors will determine whether you possess your title while you are financing your vehicle:
- The State Your Live in
- The Type of Financing You Have
You or your lender may possess your title, but you are still able to drive your vehicle while you are paying off your car.
What is the Purpose of the Title When You Finance a Car?
A title can be a helpful legal document that denotes the owner of a car and if there are any liens on it. The title can identify the owner of the vehicle and provide details about the vehicle. These exact details may vary from state to state depending on the requirements, but you can often find this information on them:
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- The License Plate Number
- The Vehicle’s Make, Model, and Year
- The Name and Address of the Owner
- The Present Liens on the Title if Any
- The Name and Contact Information of the Lender(s)
- The VIN (Vehicle Identification Number)
- The Odometer Reading at the Date of Purchase if the Vehicle is Used
Depending on the type of financing a borrower opted for, the lender may possess the title for the entire length of the car loan. Once the loan has been paid in full, the lien from the lender is removed, and the title is yours!
A lien is the lender’s legal right to the asset while a borrower is repaying a loan. If you are financing a vehicle, your lender will have a lien on the title until the loan is paid in full. You also cannot sell a vehicle until the lien is removed.
The title of your vehicle can help prove ownership and offer many details about your car. If the vehicle was pre-owned, the title can help an owner locate any details about their vehicle prior to their ownership, such as a flood or accident that may not have been disclosed.
Can You Apply for a Title Loan When You Finance a Car?
If you are questioning if you can get a title when you finance a car, you might also be curious about your eligibility for a title loan. It is possible to obtain a title loan while you are financing your car!1
Eligibility for a car title loan is based upon the equity in a car, not the number of payments a borrower has left on the car. A car may still have positive equity and could qualify for a car title loan even if it is not fully paid off yet! To qualify for a car title loan with a financed car, you must meet these requirements:1
- Have a Vehicle With Enough Equity
- Have a Reliable Source of Income to Repay the Loan
With these two requirements met, it can be easier than you think to qualify for the funds you need!1
If you are financing your vehicle and looking to apply for a car title loan, the process is not complicated. A title loan lender may cover the remaining cost of your car loan and add it to the amount you will repay. This allows you to have a new lien on your title and get the funds you need through a car title loan!1
How Do Car Title Loans Work?
Car title loans are a type of secured funding option that requires collateral. For a title loan, the collateral will be the title to the vehicle. While your initial focus may be to get a title when you finance a car, you can still apply for a car title loan if you are financing your vehicle.
Whether a borrower has a paid off vehicle or is still financing their car, there may be enough equity in the vehicle to qualify for a car title loan. To obtain a car title loan, you will use your vehicle’s title as collateral for the loan. Not only does this make the loan secure, but it also makes the approval process fast and flexible to borrowers from all different kinds of financial situations.1
Just like you can drive your car while you are financing it, you can also keep driving your vehicle while you pay off your title loan. If you make consistent, on-time payments, you can keep your normal driving routine and spend your funds!
The Documents You Will Need to Get a Title Loan When You Finance a Car
Title loans are some of the most flexible loans to apply for, but they do require a few documents during the approval process. These documents can help a loan agent qualify a borrower as well as verify their information and vehicle ownership.
Typically, you can expect to need:
- Proof of Income
- Proof of Address
- Government or State-Issued Photo ID
- Car Title
- Recent Photos of the Car
With loan options like ChoiceCash Title Loans, these documents can be submitted online for your convenience!
The Benefits of a Title Loan
Title loans can offer borrowers more benefits than cash! With ChoiceCash Title Loans, qualified borrowers can take advantage of these great benefits:1
- Payments Start Low, and Can Get Lower2: There is an opportunity through ChoiceCash Title Loans to lower your interest rate and monthly payment!2 By making consistent, on-time payments, you could qualify for this reduction and cut your monthly payment in half by the end of your loan.2
- More Time to Pay: You could have more time to repay your title loan if you need it! This can help many borrowers get back on their feet financially.
- Fast Cash: Approved borrowers can get their cash in as little as 24 hours!1 There’s no need to wait to spend the funds you qualify for.
Where You Can Apply to Get a Title Loan When You Finance a Car
While you may have wondered how to get a title when you finance a car, you now know how to use your title for cash! Getting started through ChoiceCash Title Loans is easy and hassle-free.1
Simply head over to the website to fill out a short inquiry form and get started on your loan today! You can also give a loan agent a call directly at 855-914-2945 to find out if you qualify for the cash you need.