If you’re trying to sell your car, but you still have a car title loan with a lender, you might be wondering if you can sell a car with a title loan on it. The answer is yes, but you have to make sure the car title loan is paid off before you will be able to transfer the title to the new owner.
Selling a Car with a Title Loan on It
It’s not a simple process, but you can sell a car with a title loan still on it. Whether you plan on using the money from your sale or you plan on finishing the pay off while it’s up for sale, you will have to know interested buyers that you are finishing paying off the title loan.
While you have a car title loan, there is a lien placed on your car title. What this means is that the car’s title technically belongs to the lender you have the car title loan with. You use your car title as collateral for the loan, which means you are paying off a hold they have over your loan. Until that loan is paid off, the lien will not be released, and the car will not be yours to “give away”.
Transferring the Car Title with a Car Title Loan
Unfortunately, you will not be able to officially transfer the title of the car to the name of the new owner until the car title loan is paid off. When you submit the title change through the state, they will be notified of any liens or holds on the car, so they can stop any transfers that may happen.
If you plan on using the money you receive for the car to pay off your car title loan, you’ll have to discuss that with your buyer. If it’s a friend or family member, they may be more open to waiting for their title transfer if they know you have to pay off the loan. Other people who see your car advertised may not be as flexible.
Many people want to be able to pay for the car and instantly receive the title change in their name. If you have a car title loan on the car and need to pay it off with the money they give you, you should let them know before the sale. In the end, it might make it difficult to sell your car that way.
How to Sell Your Car When You Have a Car Title Loan
It may be easier to sell a car that has a title loan by paying off the car title loan first. This will make the process of selling your car a lot easier because there are no concerns that will scare the buyer.
Once you’ve paid off the title loan, you’ll be able to sell your car without any concerns about who owns the title. You will own it again, so you’ll be able to transfer it to a buyer. After the loan is paid, you can list the car for how much the loan was worth to get your money back or a little more if you want to make a profit off of your car.
How Do Car Title Loans Work?
Car title loans use the title of your vehicle as collateral for the money you are loaned through LoanMart. LoanMart uses your ability to pay back the loan as well as the market value of the car to determine the loan. Once you’ve completed the application process with LoanMart, there will be a lien placed on your title to entitle the temporary ownership of the vehicle on LoanMart1.
There’s no need to worry, though, because you’re still able to drive your car like you normally would as long as you make your scheduled monthly payments on time. It’s just the title that is in the possession of LoanMart.
Applying with LoanMart
If you’re trying to sell your car because you can no longer afford your car title loan with another lender, consider refinancing with LoanMart to lower your monthly payments. We offer some of the most competitive interest rates in the title loan industry which give our customers lower monthly payments. Our customer service ensures that you’ll get wonderful service. Our representatives work to make sure your loan works for your lifestyle and fits into your budget.
You can apply with LoanMart in one of three ways:
- Apply with our online application through your phone, tablet, or computer.
- Call us at our toll-free number and complete the application over the phone with a representative.
- Head into your nearest participating location and complete the application in-store.
Once you’ve submitted your initial application, a LoanMart representative will contact you about submitting any required documentation. During that time, let your LoanMart representative know if you will be refinancing. Some of the documentation you may have to submit is:
- Vehicle title
- Vehicle registration
- Proof of insurance
- VIN, plate, odometer
- Proof of income
- Proof of residency
- Pictures of the vehicle
- 4 personal references
After you’ve submitted your documents, you’ll receive your new monthly payment quote and be able to sign your new contract1. LoanMart will pay your previous lender to release the lien on your title, and LoanMart will place their own.
You’ll have access to great service with a customer service team that cares! You can even download our app and make payments from your phone! Call LoanMart today to see if you can qualify for a car title loan, or start your application now!