Getting a Title Loan on a Financed Car

Daniel Joelson

Daniel Joelson

Total Posts: 344

Published Date: April 11, 2024

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.

If you are in need of immediate funds and own a financed car, you might be considering a title loan secured by your vehicle. Title loans offer a straightforward way to access money by using your car as collateral.

How Title Loans on Financed Cars Work

Unlike vehicles that are fully paid off, getting a title loan on a financed car can be more complex. It is still possible to leverage your vehicle’s equity to secure a loan.

Here is how it works:

  1. Equity Assessment: Lenders will evaluate your car’s value against your remaining loan balance to determine if you have sufficient equity.
  2. Loan Payoff: If approved, the lender will pay off your existing car loan using the title loan funds.
  3. Title Transfer: The lender will hold the title as collateral until the title loan is repaid.
title loan on a financed car
Getting a title loan on a financed car

Requirements for Getting a Title Loan on a Financed Car

To apply for a title loan while still making payments on your car, you will need the following documents:

  • Vehicle registration
  • Details of your finance company and current loan balance
  • Photos of your car
  • Driver’s license
  • Proof of income
  • Proof of residence

You will need to get a 10-day payoff amount from your finance company, which will determine the loan amount you qualify for.

Getting Your Money

Once approved for a title loan online on your financed car, you have several options to receive the funds:

  • Direct deposit into your bank account
  • Check pickup at a local title loan office
  • MoneyGram location pickup

In many cases, lenders can provide same-day funding or fund your loan within 24 hours.

Considerations for Borrowers

Before pursuing a title loan on a financed car, it is important to understand the conditions and limitations:

  • Title Status: Borrowers must have a clear title to qualify for a title loan.
  • Lender Requirements: Each lender may have specific criteria regarding the type of financing and amount owed on the vehicle.
  • Interest Rates and Terms: Consider the interest rates and repayment terms carefully to ensure they fit within your budget.

FAQs About Getting a Title Loan on a Financed Car

1. Can I get a title loan on a financed car?

Yes, it is possible to get a title loan on a financed car, but it can be more complicated. You need to have enough equity in the car, meaning the car’s value must be higher than what you still owe on your finance loan.

2. How does a title loan on a financed car work?

To get a title loan on a financed car:

  • The lender will check how much you owe on your current loan.
  • The lender will determine the car’s current value.
  • If there’s enough equity, the lender can offer a loan for the difference between your car’s value and the remaining loan balance.
  • You will need to use the loan to pay off the original finance company, and then the title loan company will hold the car title until the loan is repaid.

3. What are the risks of getting a title loan on a financed car?

Getting a title loan on a financed car can be risky:

  • You might end up with higher monthly payments.
  • If you can’t repay the loan, you risk losing your car.
  • It’s crucial to ensure you understand all the terms and can manage the payments.

Quote from Daniel Joelson

“Title loans on financed cars can provide needed cash, but they come with added risks. Borrowers should carefully consider their financial situation and ensure they can meet the repayment terms to avoid further debt.” – Daniel Joelson, Consumer Finance Expert

Getting a title loan on a financed car can be a helpful option in certain situations. However, it’s important to fully understand the process, terms, and potential risks involved. Always work with a reputable lender and make sure you can handle the repayment schedule.

Conclusion: Is a Title Loan on a Financed Car Right for You?

In conclusion, a title pawn on a financed car can be an option for those seeking quick access to funds. It is essential to weigh all options and understand the associated risks:

  • Loan Repayment: Have a well-thought-out plan for making timely payments to avoid financial complications.
  • Risk Assessment: Consider the interest rates and potential impact on your financial situation before proceeding.

By carefully looking at the terms and considering repayment strategies, a title loan on a financed car can provide the financial relief needed during challenging times.

At TFC Title Loans, we specialize in helping individuals secure title loans on financed vehicles. Contact us today to explore your options and get the funds you need.

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Disclosures

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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