What to Know About Car Title Loans for Electric Vehicles

Applying for a title loan with an electric vehicle (EV) is similar to applying with a gas-powered car, but it’s important to understand the factors that will impact a title loan application. From market value considerations to document requirements, understanding the process as a whole can help you more confidently apply for car title loans for electric vehicles. If you have questions along the way, contact a LoanMart title loan agent at 855-422-7412 or complete our fast pre-approval form to start your application at your convenience.¹

Can Electric Vehicles Be Used as Collateral for Title Loans? 

Popular electric vehicle models like the Tesla Model S, Nissan Leaf, and Rivian R1T can qualify as collateral for a title loan if you need fast cash. Electric car owners can use their vehicle title to unlock money in as little as one business day, making it easy to quickly handle a financial emergency.^{1 3}

Title lenders allow an applicant to use an electric car, truck, or SUV as collateral for a title loan if the vehicle is paid off or almost paid off and the applicant meets the requirements for the loan. If your vehicle has sufficient positive equity, you can access up to half or more of its value through a title loan and use your loan proceeds to handle various personal expenses, like rent payments or medical bills!¹

If you are still making payments on your car loan and you are eligible for a title loan on an electric vehicle, a payoff authorization form may need to be completed so that your title loan lender can pay off your existing lender. 

Understanding the Title Loan Value of Your Electric Vehicle

Your electric car’s value and your income will primarily determine your eligibility for a title loan and the loan amount you are able to access if you are eligible for funding.¹

Electric vehicles tend to depreciate in value much more quickly than Internal Combustion Engine (ICE) vehicles, as there is some market volatility due to technology advances, consumer demand, and battery conditions. However, some newer EV models, such as the MINI Cooper SE Electric Hardtop or the Hyundai Kona Electric, retain more resale value over time compared to similar EV models from other manufacturers. If you’re curious about your electric vehicle’s title loan value, LoanMart has an online title loan calculator that you can use at your convenience! Simply answer a few questions about your vehicle and yourself to receive an instant car title loan quote at any time of the day or night. If you are eligible for an EV title loan serviced by LoanMart, you can access up to $15,000!¹

Call Our Team

Take the first step and call our toll-free hotline to speak with a specialist.

855-422-7412

What Documents are Needed for an Electric Vehicle Title Loan?

As mentioned above, meeting the requirements is a crucial step in the title loan application process. Your car must have enough positive equity, and you will need to be at least 18 years old to submit an electric vehicle title loan application. In addition to meeting the loan criteria, the following documents will be required when applying for a car title loan on an electric vehicle:¹

• Valid, Government-Issued Photo ID, Like a Driver’s License
• EV Title In Your Name and in Your Possession
• Proof of Income, Such as Pay Stubs or Bank Statements
• Proof of Residence Through Credit Card Statements or Electric Bills
• Recent Photos of the Electric Car or Truck

During some title loan applications, you are required to provide the required paperwork in person. When applying for a title loan serviced by LoanMart, your documentation and vehicle photos can be submitted through the online portal, or sent to a loan officer via email or text message. 

Loan Terms and Interest Rates for Title Loans on Electric Vehicles

Understanding your loan’s interest rate, Annual Percentage Rate (APR), and the amount of time you will have to pay back the loan is important. The terms and conditions of your EV title loan can vary depending on the title loan company you get a loan from, so comparing your options is recommended in order to obtain the most optimal loan terms available. 

If you are eligible for an electric vehicle title loan serviced by LoanMart, you’ll be able to access perks like competitive interest rates, no balloon payments, and flexible loan terms!^{1 5} Visit our FAQ page to understand more about the repayment process for auto title loans. 

What are the Risks and Challenges to Consider with EV Title Loans?

As mentioned above, the value of many electric vehicles tends to depreciate rapidly, often due to outdated technology, aging batteries, and fluctuating market demand. While you may have purchased your vehicle for well over $30,000, your electric car’s value can easily depreciate by over 40% after the first five years of ownership. Understand that the amount you will be able to access through an EV title loan is based on your vehicle’s current value and your income. If your electric vehicle has depreciated in value in the last few years, you will not be able to access as high a title loan amount as you may have been able to in the first year that you purchased the car.¹

The biggest potential risk for electric vehicle title loan borrowers is vehicle repossession. While a huge benefit of car title loans is that you can maintain access to your car throughout the repayment process, if you neglect your title loan payments and default on the loan, your EV can be repossessed. It is always a smart idea to contact your title loan lender or loan servicer to explore your options if you’re feeling financially stretched and you are worried about being able to pay your loan on time.  

Benefits of Using an EV for a Title Loan

If you qualify for an EV title loan serviced by LoanMart, you can expect a number of perks that can add to your overall loan experience! The application process can be a breeze, and you can take advantage of the following benefits when using your electric car’s title as collateral for a loan:¹

• Fast Funding: If you are fully approved for an EV title loan serviced by LoanMart, you can access your funds in as little as 24 hours by choosing to receive your money via direct deposit.³
• Flexibility for Bad Credit Borrowers: You can still qualify for a title loan with bad credit since the primary focus of your electric vehicle title loan application is on your income and your vehicle’s value.¹
• Alternative Income May Be Accepted: Another benefit of applying for car title loans for electric vehicles is that alternative income can be accepted during your application to verify your ability to make payments on your loan. If you don’t have a traditional job, you can submit proof of retirement income, Supplemental Security Income, workers’ compensation, etc. 

The application process can be straightforward and fast for electric vehicle owners, with some borrowers receiving funds the same day they are approved! Don’t wait to see if you are eligible for the help you need to get your finances back on track. Apply online now!¹

Tips for Applying for Car Title Loans on Electric Vehicles

Here are a few tips that ensure the electric vehicle title loan application process goes as smoothly as possible: 

Read the Terms and Conditions of the Loan

It’s tempting to quickly scan through your title loan agreement, but you should take the time to read it line by line to fully understand the repayment process. You’ll find helpful details about the terms and conditions of your loan in the agreement, including your loan’s interest rate and your monthly loan amount. If you have any questions, don’t hesitate to ask your loan officer during this step of the application process. 

Budget for the Repayment Process

Before signing a loan agreement, consider your current expenses, the length of the loan term, and any potential challenges that may arise during the duration of the loan term. Ensure the monthly loan payment is manageable within your current budget, and consider the loan’s affordability. 

Make Your Life Easier and Set Up Autopay

You can make the repayment process a little bit simpler by setting up automatic payments from a checking account, which helps you avoid forgetting to pay your loan on time each month. If you’re approved for an EV title loan serviced by LoanMart, you can set up autopay during the repayment process and pay off your title loan early without incurring prepayment penalties.^{1 5}

How to Apply for a Car Title Loan With an EV

Car title loans for electric vehicles can be an option if you need emergency funding, and the application process is designed to be quick and easy!¹ Through title loans serviced by LoanMart, you can start your application online at any time of the day or night. Below are the steps to apply for a loan against your electric vehicle and access the emergency cash you need:¹

1. Fill Out a Pre-approval Form or Call the Toll-Free Number to Get Started
2. Provide the Required Documents to Verify Your Information
3. Sign Your Loan Agreement and Get Your Money if You Qualify!¹

Applying for a car title loan on an electric vehicle can be easier than you might think! Speak with one of our loan agents by dialing 855-422-7412 or fill out the simple online questionnaire to start the application process at your convenience. If you are eligible, you can get your money in as little as 24 hours and access competitive interest rates!^{1 3}