What is Title Loan Repossession?
With a title loan, a qualified borrower can use their vehicle title as collateral for emergency funding. It is important to understand the benefits and potential drawbacks of qualifying for a secured loan option like a title loan. Title loan repossession occurs when a borrower defaults on their loan, and the lender decides to seize the vehicle. While most title lenders try to avoid repossessions, it can happen if a borrower is unable to meet their repayment obligations and defaults on the loan.
What is Title Loan Default?
Defaulting on a title loan simply means the borrower has failed to meet their repayment obligations as outlined in the loan agreement. If you’re having trouble with your title loan payments, it’s generally recommended to reach out to your loan servicer or lender to discuss your potential options. If you default on your title loan and the car is seized, the lender can sell the vehicle to cover the remaining balance of your loan.
What are the Title Loan Repossession Laws?

Before you sign a loan contract, you should know more about the title loan repossession laws in your state. Repossession laws that dictate how vehicle repossessions are handled by lenders can vary from state to state. It is incredibly important to do your due diligence before you take out a title loan and research title loan repossession laws in your specific state so that you are adequately prepared to apply for a title loan.
Many title lenders prefer to avoid seizing your vehicle, and in some cases, they will work with you to find an alternative solution. If you are struggling with your current loan terms and want to avoid title loan repossession, you may want to consider refinancing your title loan with your existing lender or a new title lender.
My Car Was Repossessed by a Title Loan Company, So What Do I Do Now?
If your car was repossessed by a title loan company, you might not know what the next step is or how to get your car back. The first thing you should do is contact the lender or loan servicer immediately to explore your potential options. In some cases, the lender will be willing to work with you, and you may have an opportunity to catch up on missed payments if you reach out as soon as possible.
How to Stop a Title Loan Repossession?
If you are currently struggling with your title loan payments, you might be wondering whether it is possible to stop a title loan repossession.
Here’s how to stop a title loan repossession:
- Pay What You Owe: If you have missed multiple payments on a title loan, then one of the simplest ways to stop a title loan repossession is to catch up with your loan payments and make sure the loan is current. To do this, you may need to get a second job or ask friends and family for financial assistance.
- Work Out a Payment Plan with Your Lender: Another option you may have if you are struggling to pay your title loan back is to negotiate a new payment plan with your lender that is based on your current financial situation. You can potentially pay what you owe outright or work out some kind of payment plan with your title lender.
How to Get Your Car Back After Title Loan Repossession
In most cases, a borrower will be given the opportunity to pay off the remaining balance of the loan before the car is sold at auction by the title lender. Here’s how to get your car back after title loan repossession:
- Contact the Lender or Loan Servicer Directly: In order to retrieve your car, you will need to contact your title lender or loan servicer and obtain more information about your outstanding balance. They will be able to let you know what you will need to do to get your loan back on track and get your vehicle back.
- Take Care of the Outstanding Balance of the Loan: One of the simplest ways to recover your car is to pay the outstanding loan balance, along with any repossession fees and applicable expenses. If you are unable to catch up with your payments, then you may want to negotiate with your lender and ask for a realistic payment plan.
How Long Before Title Loan Repossession Occurs?

So, how long do you have before title loan repossession occurs? The exact timeframe will usually depend on the applicable laws in your state and the terms of your loan agreement. Generally, title loan repossession can occur fairly quickly after a borrower defaults on their title loan. However, many title lenders will reach out to the borrower and attempt to work with them to resolve the issue and avoid repossession.
How Can I Prevent Title Loan Repossession?
There are quite a few things you can do to potentially prevent a title loan repossession, including the following:
- Talk to Your Lender About Financial Hardship ASAP
One of the simplest ways to prevent a title loan repossession is to talk to your lender about your financial situation if it changes throughout the duration of your loan. - Get a Loan That You Can Realistically Afford
Although it can be tempting to take out the first loan you find during a financial emergency, it is important to make sure you can afford the minimum monthly payment on a loan. Before you sign your loan agreement, it is important to set up a budget plan and see what you can realistically afford to pay each month. - Make Your Loan Payment a Priority
If you have not done so already, now is the time to learn how to effectively manage your finances and budget for your loan payment. It is easier to avoid loan default if you are dedicating a portion of your income each month to your loan payment. There are many different kinds of budgeting apps that can help you figure out how to prioritize your bills and manage your spending habits! - Refinance if You Need to
If you are struggling to keep up with your current loan terms, it may be time to consider refinancing your title loan in order to avoid loan default. If you are able to refinance your title loan, you will essentially get a new loan with different terms. That could make it easier for you to keep up with your loan payments!
If you have any questions about title loan repossession or title loan repossession laws, don’t hesitate to call a ChoiceCash title loan agent at 855-422-7402!