Whether you are selling your vehicle independently or through a dealership, it can be a complicated process to go through. If you are currently involved with a lender, you may be wondering if you can sell a car with a title loan on it.
How Can I Sell a Car with a Title Loan On it?
Before you can understand how to sell a vehicle with a title loan on it, you should first decide the method of sale. You can either:
- Sell Your Vehicle Independently, or
- Sell Your Car Through a Dealership or Trade-in
You may get less of a profit selling through a dealership, but they will handle the time and effort that it takes to market your vehicle. If you choose to sell your car through a dealership, however, you may not be able to if there is a lien on your title.
If you sell independently, you will have to pay off your title loan before you can complete the vehicle sale. This is because when you have a title loan, the lender signs onto the vehicle title as a lienholder, making them a partial owner of the car for the duration of the loan. However, once the title loan is paid back in full, the lender can remove themselves from the vehicle title, leaving you free to sell your vehicle!
How Do Car Title Loans Work?
Car title loans are a type of installment loan that is secured through collateral. During the approval process for a car title loan, the collateral is the title to the borrower’s car. For a title loan, the loan amount and a borrower’s eligibility are based upon the value of the car.
Using collateral for a loan will make the approval process much more flexible than other types of loans since many traditional loans require a good credit score for a borrower to be eligible for a loan. Since most traditional loans are not collateral-based, there is nothing to offset the lending risk, and the borrower must prove they are good with money through their credit history.
Instead of relying on just your credit history to approve you for a loan, a title loan is different. Your collateral, or the title to your vehicle, can offset the lending risk and vouch for you. This is what makes title loans so popular as an alternative lending option.
Since your car’s title is collateral for the loan, a lien is placed on it. During the repayment process for the loan, the lien remains. A lien is simply the lender’s legal right to your asset during the duration of the loan. As soon as the loan is paid off, the lien is removed, and your title is lien-free. While a lien is on your vehicle, you may not be able to sell it to another individual.
What Is the Title Transfer Process Like Once I Sell a Car?
Initially, your first step should be to make sure your title is now lien-free. When you are approached by a buyer to sell and submit the title change, the state will notify you of any liens or holds that will stop the transfer from happening.
When you do happen to find a buyer, the transferring process for a car title will often look like this:
- As a Seller, You Must Release Ownership of the Car and Sign the Title
- Then, Submit a Title Change Request Form to the DMV
- The Buyer Can Take the Signed Title to the DMV and Transfer it to Their Name
Some states will require a bill of sale and other additional paperwork. When you are purchasing a new vehicle, the dealership will handle this type of paperwork. When you sell as a private individual, there is a little more effort involved! Most states will require a seller to provide basic information about the car, including:
- The Current Odometer Reading
- The Make and Model of the Vehicle
- The Sale Price
Before selling your vehicle, make sure you understand what your state’s DMV will require for the title transfer and sale of your car. This can help speed the transferring process along.
How Can I Refinance My Current Car Title Loan?
High interest rates and unappealing loan terms can make it tough to repay your title loan. If you are currently struggling with your title loan payments, you may be wondering if you can sell a car with a title loan on it.
If your title loan payments are unreasonable, there are other options to consider! As a title loan borrower, one of your options to save money is to refinance your title loan.1 Refinancing your loan could mean more optimal loan terms and competitive interest rates.1 These improved factors combined can make your refinanced loan much more affordable for your budget.
Applying for title loan refinancing is easy! The process is almost the same as applying for a title loan. To apply, you’ll need to first choose a new title loan company to work with. Your current car title loan is likely unaffordable because of your current lender’s interest rates and loan terms. The point of refinancing is to find better loan terms that suit your current budget.
Interest rates are one of the most important piece of your loan. These rates determine how much you pay back, and how easy it will be to repay the loan. Often, one of the biggest reasons to refinance a loan is to obtain better interest rates. If you have found yourself struggling to make your loan payments each month because of your loan terms or interest, consider refinancing your title loan.
Applying for title loan refinancing can be easily done online. With loan options like ChoiceCash Title Loans, you can refinance your current title loan by answering a few questions about your car, discussing your current loan situation, and sending in some documents!1
Can I Get More Cash if I Refinance My Title Loan Instead of Selling My Car?
If you are thinking of selling your car to pay off your title loan, you may not be able to get enough cash to cover the rest of your loan amount. You may be able to obtain more funds through refinancing your current title loan!
This is a result of the value of your car as collateral. When you refinance your loan, you may be able to tap into more equity in your vehicle and turn that into cash!1 While everyone’s financial situation is unique, refinancing your loan could potentially mean more cash to spend.1
Where Can I Apply for Car Title Loan Refinancing Online?
Inquiring about title loan refinancing doesn’t need to be a hassle. In fact, options like ChoiceCash Title Loans can make the process simple and convenient.1
With ChoiceCash Title Loans, you can expect an easy, three-step process when you are looking to refinance your current car title loan:1
- Submit a Title Loan Refinancing Inquiry
- Send in a Few Documents to Verify Your Information and Vehicle
- Refinance Your Loan and Enjoy Your New Loan Terms!1
Getting started on your new refinanced loan is easy! If you have any questions about the approval process for title loan refinancing, give a loan agent a call today at (855) 914-2945. ChoiceCash Title Loan agents are available for extended hours seven days a week to get you the answers and help you need.1 Or, see if you can qualify for title loan refinancing online through the website. Both options can take just a few minutes of your time!1