Can a Title Loan Take My Car? Title Loan Tips

Daniel Joelson

Daniel Joelson

Total Posts: 583

Published Date: December 9, 2021

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.

Loosing My Car

This article was brought to you by TFC Title Loans, we will give you some title loan tips, we try to bring to you the most informative information. If you are interested in getting a title loan near you, we are able to help you with our large referral network.

We will help you to get the most money by using the equity that you have in your vehicle, the application is fast and we can provide you with same-day funding.

All of our referral partners are in compliance with the CFPB. We will help you to get the money that you need but from a trusted and reliable title lender.

Title loans can be a great way to get more financial flexibility when you have unforeseen emergencies, but can a title loan take your car away? Just as with collateral on any loan, if you default your car could potentially be repossessed.

If you’ve chosen a reputable lender for your title loan, however, there is usually a multitude of ways to ensure that you don’t default on your payments. While good lenders will usually work with you when they are able if you’re having trouble making payments, borrowers who don’t pay back their loan at all may end up defaulting and find their vehicle at risk of repossession.

Car Title Loan Repossession

In a car title loan, if the borrower fails to pay back the loan, the lender may have the option to repossess the vehicle and auction it to pay for the outstanding principal owed on the loan. The process for repossession is a little different in each state. Many states have “right to cure” policies, which require a lender to send a notice of their intentions to repossess, after which the borrower has a set number of days to clear the debt before repossession can occur. Other states have entirely different systems governing the process of title loan repossession, but most require that the lender make some sort of formal declaration of their intention to repossess in advance. Make sure to be aware of the laws in your own state.

After a vehicle is repossessed, it will often be taken to an auto auction to recoup the lenders’ losses from the loan. Again, this is a process that varies greatly by state. Some states will require that once your car is sold, any money beyond the amount of the debt will be returned to you, but many allow the lender to keep any differences between the money you owe and your car’s value. Some states may even allow a lender to auction your vehicle and still come after you for even more if the price the car sold at didn’t cover your loan.

How to Avoid Repossession From a Title Loan

For any loan, the prospect of defaulting can be scary. When you take a loan, you accept the responsibility to pay back your lender on time. Lenders rely on these repayments, so there does need to be some way for them to recoup losses from people who just refuse to live up to their end of the bargain. While car title loan repossession may seem harsh, it’s a tool that most lenders only use when there are no other options.

Reputable car title lenders want to maintain their reputation of quality business practices, and all the paperwork and labor that goes with repossessing vehicle and selling it at auction gradually deplete the money that they would recoup from doing so. Lenders don’t want to repossess anybody’s vehicle, but often recovering unpaid loans is a wasteful but necessary part of business for them.

Like any other service business, quality lenders want to take care of those that borrow through them. Providing quality service over and overbuilds the trust that is necessary for any financial lender to have with their borrowers. When you are at risk of getting behind on your payments, your lender will probably have options available to set up payment plans or help you organize a way to prevent defaulting. Defaulting on a loan can result in costly fees and hits to your credit score even if repossession never happens, so if you get close to default, or get a right to cure notice, communicate with your lender right away about how you can resolve the situation.

How Common is Car Title Loan Repossession?

The repossession of vehicles to cover car title loans usually creates a lot of extra work for a lender and can be devastating for a borrower, so it’s usually used only as a last resort. Sadly, repossessions do happen from time to time, but there are typically ways to work out a solution for any borrower who makes an effort. When a lender is unable to even contact a borrower to try to work on a solution is often when they will be forced to repossess.

What Can You Do if Your Car is Repossessed?

You typically still have options if your car is repossessed. Again, repossession is typically a departure from normal business for most lenders, and so they would love to resolve the issue before investing more effort and resources into auctioning your car. Once your car is repossessed, you may actually owe more than you did due to the expense of a repo agent and legal fees. Even if it gets to that point though, an established lender will usually be ready to work something out that’s acceptable to both of you.

Often you will be able to pay your past due amounts and any fees associated with the repossession to regain your vehicle. This will mean that you still owe future payments, but that you essentially get to reset to before the repossession. You could also pay your loan in full plus any fees and regain your title. Then, you will likely need to go get your car from a tow yard with the help of a notary. Unfortunately, once your car has been repossessed there won’t be many ways to get it back that don’t involve paying up. This is why quick communication about any lapses in your payments is essential before you default on a loan.

Responsible Borrowing with Title Loans

Borrowing can be crucial to making life goals happen overtime or getting out of a sticky financial spot, but finance is serious business, and you always want to borrow responsibly to protect your future. Before jumping into any loan, you should read all the terms and understand the payment schedule. If you have any questions, ask them before you finalize the loan.

Since repossession of your car can be crippling to your earning power and quality of life, you need to be sure to choose a reputable lender with a long history of quality service to borrowers over the years. When the unexpected delays a loan payment, you want to be working with a quality organization that will find a productive solution that helps keep your head above water.

Here at TFC Title Loans, we have over 20 years of experience in providing title loans in any state they exist. We’ve built our reputation over time by providing fair interest rates and sustainable repayment schedules. We know that lenders and borrowers are partners in a loan, and working together is in everyone’s best interest. Apply online today for a secured title loan, and see how much cash you could get today for your title.

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DISCLAIMER: As our policy to make sure you know what we do and what are our limitations, we offer you these disclaimers. We are NOT A LENDER and we do not make short term cash loans or credit decisions. We are a referral service and work only with licensed lenders/brokers.

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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