Are you wondering if can you sell your car while you have a title loan on it? Yes, you can sell your car while you have a title loan on it.
Of cause to sell your car, you must pay off the title loan that you have on it. You will need the title to sell the car so that the new owner can register themselves on the title.
Selling your car with you having a title loan on it is possible, but to be able to give the new owner the title, you must pay off the title loan company first.
When you are selling a car with a title loan, either you or the buyer can pay the title loan company directly. If the buyer pays the title loan company directly, they will need the authorization to release the title to them after they have paid off the account.
Selling a car with a title loan is possible, but you will need to let the buyer know about the finance company that is holding the title, and if they are comfortable with paying off the company for you.
Selling A Car With A Title Loan On It
If you are selling your car and you have a title loan on it, you will need to inform the buyer that you have a lien on your car, maybe the buyer will pay off the online title loan company, so they can get the title.
You can use the sale to just finish paying off your title loan, or if there are proceeds after the sale, you will get to keep the difference.
The car title loan company will have a lien on your title, and they will have possession of the title. You will need to pay off the title loan in full so that you can give the title to the new owner of your car.
Frequently Asked Questions About Selling Your Car with a Title Loan
- Can I sell my car if it has a title loan on it? Selling a car with an outstanding title loan is possible but requires specific steps. You must first pay off the loan in full to obtain a clear title to transfer ownership to the buyer.
- What happens if I sell my car with a title loan? If you sell your car without paying off the title loan, the lender’s lien on the vehicle remains. The new owner cannot legally register the vehicle until the lien is satisfied, which typically involves paying off the loan.
- Can I transfer a title loan to another vehicle if I sell my car? Generally, title loans are specific to the vehicle used as collateral. If you sell your car, you usually cannot transfer the existing title loan to another vehicle. You would need to apply for a new title loan for the new vehicle, if needed.
Quote from Daniel Joelson, Consumer Finance Expert: “Before selling a car with an active title loan, it’s crucial to understand the process and responsibilities involved. Clear communication with the lender and ensuring all obligations are met can prevent legal and financial complications down the road.”
Getting The Title Back
Until you have completely paid off your title loan, you will not be able to transfer your ownership of your car to another person. All liens will need to be satisfied before the DMV can do any sort of transfer.
If a transfer is attempted without a lien satisfied, the DMV will notify the lender. It is impossible to transfer the title without the finance company being paid off.
Are you are going to use the sale of the car to pay off the title loan? it would be best to disclose this to the buyer so that there will not be any surprises for them.
Most people when they buy a car, want to see the title before they pay for it. They will also want to have the title in hand when they pay for it, so communication with the buyer is important.
It Would be good to also inform the title loan company that you are selling the car so that they can have the title ready for you.
How to Sell Your Vehicle When You Have A Title Loan
The easiest way for you to sell your car with a title loan would be to pay off your title loan first so that you have the title in hand but that is not always possible.
The buyer will want to see the title before they buy the car, so it will be important that your buyer will understand the process for them to get the title from the company.
Get the actual payoff from your title loan company, so you can tell the buyer how much the payoff will be, and arrange it so you or the buyer can pick up the title from the finance company.
Good luck, and if you need any help paying off your title loan and refinancing it with us, we will be happy to help you.
TFC Title Loans will be your broker, we can help you with anything to do with title loans.
