Can A Car With A Title Loan Be Traded in For a Newer Car?

Daniel Joelson

Daniel Joelson

Total Posts: 583

Published Date: January 26, 2023

Daniel Joelson has been in the consumer finance space since 1994, he has helped to develop underwriting manuals for the financial sector. With a vast amount of Knowledge in consumer finance, he has been writing articles for all types of loans. With his knowledge, he is able to help many people to answer different financial problems.

Trading In Your Car With A Title Loan

Can a car with a title loan be traded in for a newer car? Yes, you can trade in your car with a title loan, when you want to buy a new car.  the bank will pay off your title loan, and replace it with a new loan for your new car.

If you have bought a car, then the first thing that comes to your mind is what to do with your previous car. There are mainly two options that can be helpful for you rather than a personal loan.

You can go for an option to sell it to a private party, or you can trade it in at a dealership. However, there are some pros and cons to both options. But trading it with a dealership can be more convenient, and this is the best option that many people can choose.

Trade-In A Title Loan For A New Car

Trading in your vehicle means selling it to a dealership to get cash or credit score towards the purchase of a new vehicle. After trading the vehicle, the dealership can later sell it to any customer to get a higher price. 

In another case, if you don’t owe anything on your car or vehicle or loan payment, then trading it becomes a more simple and more straightforward process. But trading your car with Oklahoma City Title Loans becomes a little complicated. There are so many questions that come into the mind of every person. For instance, what happens to the title loan application, how much can be earned from the trade-in, etc. Today you are going to get answers to every question. 

The right way to calculate your equity 

First things first, if you have decided to trade in your car with an auto title loan or related payment plan, then you need to know whether you have positive or negative equity on your car. 

Equity means the portion of your vehicle that you legally own. To know the equity, you need to subtract the remaining balance on your loan from the resale value of your vehicle. If you get the difference between the two numbers to be positive, then you have positive equity. But if the difference between both the numbers is negative, then you have negative equity, which in other words, means you are underwater on your collateral loan. 

Calculating your equity will help you know in which direction to move to complete the trade-in process and have a simple payment plan. 

Can a title loan be traded in for a newer car?
You can trade in your car with a title loan on it.

The best way to trade in your vehicle with a positive equity 

If you are known to have positive equity in your car with the online title loan offer, then you can trade it in and apply for your equity after the purchase of your new car. 

For instance, your car’s resale value is known to be $15,000, and you own $5000 of your loan, which means you have $10,000 equity. However, the trade-in value of it will be lower. The dealership will be able to offer you only $11000. In case you accept the offer, then you are still accountable for paying the remaining balance of your auto loan in Oklahoma. Thus, $6,000 is your positive equity. 

The best way to trade in your vehicle with a negative equity 

Another situation is that you owe more on your vehicle as compared to its worth which means you have negative equity. This situation can be handled best if you hold off on the decision of trading in your car until you get positive equity on your car or you have completely paid off your collateral loan. However, you also have the option to trade in your vehicle with a negative equity by choosing two options which are: 

  • Pay the difference 
  • Roll your negative equity into a new loan 

Simple tips to trade in your vehicle with a car title loan

You can follow the simple tips to trade in your vehicle with a car title loan in Oklahoma, no matter the positive or negative equity: 

  • Get various trade-in offers – You can try this option with various dealerships so that you can get more money than expected on your car with title loan companies. 
  • Don’t hesitate to negotiate – You can always try to negotiate for online title loans in Oklahoma without any hesitation.
  • Confirm that the title loan has been paid off – If you are trading in your car with Oklahoma City Title Loans, then the dealership is responsible for paying off your loan. Thus, ensure that you go through your loan balance after some weeks. 


It is possible to trade in your car with a loan agent for a title loan for a newer car. However, you need to follow the right way to do it. Otherwise, things can get a bit complicated. 

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We may act as the broker for the loan and may not be the direct lender. Loan proceeds are intended primarily for personal, family and household purposes. We do not offer or service student loans.

*Loan amounts by the lenders vary based on your vehicle and your ability to repay the loan.

*Since we do not lend money directly we cannot offer you a solicitation for a loan, except in the state of California. In all other serviced states we WILL match you with a lender based on the information you provide on this website. We will not charge you for this service and our service is not available in all states. States that are serviced by this Web Site may change from time to time and without notice. Personal Unsecured Loans and Auto Title Loans are not available in all states and all areas.

*Auto Title Loan companies typically do not have pre-payment penalties, but we cannot guarantee that every lender meets this standard. Small Business Loans typically do have pre-payment penalties and occasionally will use your car as collateral to secure the loan.

*All lenders are responsible for their own interest rates and payment terms. TFC Title Loans has no control over these rates or payments. Use of the work competitive or reasonable does not mean affordable and borrowers should use their own discretion when working directly with the lender.

*The amount of people who applied for a loan and we helped and those who received a loan is not the same. We cannot guarantee we will find a lender who will fund you.Just because you give us information on this web site, in no way do we guarantee you will be approved for a car title loan or any other type of loan. Not all lenders can provide loan amounts you may see on this web site because loan amounts are limited by state law and/or the lender. Some lenders may require you to use a GPS locator device on your car, active all the time. They may or may not pay for this or charge you for this. This is up to the lender and we have no control over this policy of the lender. Typically larger loans or higher risk loans use a GPS.

*In some circumstances faxing may be required. Use of your cell phone to receive updates is optional.

*Car Title Loans are expensive and you may have other ways to get funding that is less expensive. These types of loans are meant to provide you with short term financing to solve immediate cash needs and should not be considered a long term solution. Residents of some states may not be eligible for a loan. Rejections for loans are not disclosed to our firm and you may want to contact the lender directly.

*Car Title Loan lenders are usually licensed by the State in which you reside. You should consult directly with these regulatory agencies to make sure your lender is licensed and in compliance. These agencies are there to protect you and we advise making sure any lender you receive money from is fully licensed.

*Trading Financial Credit, LLC dba TFC Title Loans, Car Title Loans California, Dineromax. If you are using a screen reader and are having problems using this website, please give us a call at 1-844-242-3543 for immediate assistance.

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