Can I Sell a Car with a Title Loan on It?

Looking to sell a car with a title loan on it? Before you can transfer the vehicle title to a new owner, you must pay off the existing title loan first. 

If you want to sell your vehicle with a title loan on it, keep in mind that the title lender most likely placed a lien on your vehicle when you first took out your loan, which indicates their legal right to your car or truck. The lien will remain on your title until you’ve completely paid off your loan. Essentially, the vehicle is not yours to sell until the lien is released by the lender. 

What Can I Do if I Can’t Afford My Title Loan?

You could try to refinance your title loan if you can’t afford your current loan terms. When you refinance a car title loan, you are replacing your current title loan with a new one in order to get different loan terms. If you qualify for title loan refinancing, you can potentially access a few different benefits, such as:

  1. Competitive Interest Rates
  2. More Time to Catch Up with Your Payments
  3. Better Customer Service Agents

With ChoiceCash title loans, you could access competitive interest rates and a flexible application process if you qualify!1 Call a ChoiceCash title loan agent today at 855-422-7402 if you have questions about title loan refinancing.

What is the Best Way to Sell a Car with a Title Loan?

The best way to sell a car with a title loan on it is to pay the outstanding balance of the loan. Once that is done, you will be able to sell your vehicle, for example by posting it for sale online. 

You can sell your car online by creating a listing on popular websites such as CarGurus, AutoTrader, Craigslist, or Facebook Marketplace. It’s important to include all the relevant details about your car in the listing, such as:

  • The Make, Model, Year, and Style of the Car 
  • Current Mileage on the Odometer
  • Current Condition of the Vehicle
  • Asking Price of the Car

If you plan on using the money from the sale to pay off your auto title loan, you will need to discuss it with the buyer in advance. It can be tough to sell a car with a title loan on it, but you may be able to find a buyer who is willing to work with you. One scenario that could work is to sell your current car to a dealership while you’re in the process of buying a new car from the same dealership – this is commonly referred to as “trading in” your vehicle. If your outstanding title loan balance is below the vehicle’s market value, or if the loan balance is not too far above the market value, the dealership may be willing to pay off your title loan when selling you another vehicle.  

Additionally, you could ask a friend / family member to help you pay off the car title loan. Once the title loan is paid in full, you will be able to transfer the vehicle title to a new owner. 

sell car with a title loan

Can I Transfer Title Loans or a Car Title to Someone Else?

Generally, you will not be able to transfer title loans to another individual. Additionally, you will not be able to transfer a car title to a new owner until the car title loan is paid in full. But, once you completely pay off a car title loan, the title lender will release the lien from the title. Then, you are free to sell your car and transfer the title to the new owner! 

The exact steps to transfer a car title to a new owner can vary from state to state. However, if you are selling a car to a private party, here is a general overview of how to transfer the title to a new owner:

  1. Get Ready: Visit your state’s DMV website to learn more about transferring a car title to a new owner.
  2. Sign the Title: As the seller, you will be required to release ownership of the car by signing the title. Depending on your state of residence, you may be required to sign the vehicle title in the presence of a notary public. If you choose to go with the buyer to your state’s respective Department of Motor Vehicles (DMV), the clerk may be able to help you with that part of the process. You may need to fill out additional information on the title, such as:
    • The Current Mileage Listed on the Car’s Odometer Reading
    • The Sale Price of the Car
    • Other Pertinent Information
    Typically, the buyer will also need to sign the title and provide their basic contact information. 
  1. Transfer the Car Title: Generally, as soon as the title is signed, the buyer will take it to their local DMV to complete the title transfer and obtain a new registration and title. Depending on the buyer’s state of residence, they may be required to provide additional paperwork to complete the process, such as:
    • A Signed Bill of Sale
    • A Completed Transfer of Ownership Form 

Is it Better to Pay Off Your Car Title Loan Before Selling it?

Yes, generally, it is better to pay off your car title loan before selling it. It can be difficult to sell a car with a title loan on it. Once your car title loan is paid in full, however, you can choose to sell your vehicle in one of the following ways:

  • Sell the Vehicle to a Private Party 
  • Sell the Car to a Dealership

When you sell a car to an individual, you’ll likely receive more money than if you sold it to a dealership. But, as the seller, you must do all the hard work yourself. That means you are responsible for advertising the car, arranging the sale, and working with the buyer. Typically, it is a lot easier and faster to sell a car to a dealership.

Ultimately, the decision to sell your car is completely up to you! Whether you choose to sell the car to an individual or a dealership depends on your personal preferences, financial goals, and priorities.

best way to sell a car with title loan

What are Some Places that Buy Cars with Title Loans?

Looking for some places that buy cars with title loans? If you want to sell a car with a title loan, you may be wondering, “who buys car title loans?” 

The answer is that if you post your car for sale online, you may be able to find a buyer that is willing to buy it right away and pay you in advance. In some cases, you may find a buyer that is willing to pay off the loan balance on your behalf. You will be able to transfer the title to the new owner after you have paid off the title loan in full.

If you are trying to sell your car simply because you can’t afford your current loan terms, you may have other options! You can try to refinance your existing car title loan in order to obtain different loan terms and more time to catch up with your loan payments. You can apply for title loan refinancing online or over the phone today! Just use your smartphone or computer to begin the online application process.1 
With ChoiceCash title loans serviced by LoanMart, you can expect excellent customer service and a quick application process!1

Visit the website to learn more about title loan refinancing. Call 855-422-7402 or fill out the online pre-approval form to find out if you qualify for title loan refinancing today!1

Frequently Asked Questions

If you want to sell a car with a title loan on it, you must pay off the existing loan before you can transfer the vehicle title to the new owner.

The simplest way for you to remove a lien from your car’s title is to pay the auto title loan in full. After the loan is completely paid off, the lien is released by the title lender, and you could sell your car to a private party or to a dealership.

Yes, it is possible to sell your car to pay off your title loan. But, you will need to find a buyer that is willing to pay you in advance, or willing to pay off the loan balance on your behalf. Once the title loan is completely paid off, you will be able to transfer the title to the new owner.

If you purchased a car with a title loan on it, the seller could use the money from the sale to completely pay off the title loan. Then, you will be able to transfer the car title to your name, and the car will be yours!

The easiest way to get out of a car title loan is to completely pay it off. If you can’t afford your current loan payments, however, you can try to apply for car title loan refinancing in order to potentially get better loan terms.1

Sebastían S.
Sebastían S.
Sebastían S. is a graduate of Texas State University and a contributing member of the ChoiceCash content team with over two years of experience in the financial services industry. As a proficient digital content writer, his writing style combines transparency and expertise in order to make complex financial topics accessible to a wide audience. Whether the topic is about title loans, debt management, or budgeting, Sebastian's objective is to provide readers with accurate and relevant information that is easily understood. Find him on Linkedin.