The simplest way to avoid having your car repossessed because of a title loan is to keep making payments on time. Be sure you understand your state’s laws surround repossession, as they vary from state to state. You’ll also want to know the details of your loan. If the lender must give you a final notice to repay, you’ll know that is the last opportunity you have to pay it off. You’ll also need to know if you can do things like roll the balance of your loan into a new one.
Repossession is an unfavorable option, to say the least. We don’t want to take your car any more than you want it taken from you. Repossession of your vehicle can cause major inconveniences to your life. Many of us use our cars every day to get to and from work, to pickup groceries, and much more. It can even be hard to imagine life without a car.
LoanMart knows that your car is important to you, both financially and personally, that’s why we want you to keep your car. LoanMart will work with you to ensure you have a manageable payment plan that you feel comfortable with, so your auto title loan is never a problem.
What Happens If Your Car Gets Repossessed?
If you stop making your monthly payments on your auto title loan, LoanMart might have no other choice than to repossess your vehicle. The individual repossession procedure is different from state to state, so you should discuss the logistics with your LoanMart auto title loan agent if you have reason to believe that repossession might happen in your case.
Typically, when your car is repossessed it is taken to a tow yard. The bright side of this is that most tow yards are surrounded by a massive fence and locked up at all times. This means that while your car is in the tow yard it is safe from being stolen or drastically harmed.
While this is happening, you and your LoanMart title loan agent can discuss the issues that lead to the repossession of your car. It might have been because your financial situation has changed, which made your payment plan unmanageable. Whatever the case may be, your LoanMart title loan agent is always willing to work with you to identify and confront the issue.
Can Title Loan Companies Repossess Cars (and other Vehicles)?
Can title loan companies repossess your car? Yes they can, but LoanMart promises responsible customers that they can keep their keys and their car as long as they make the appropriate payments!
Auto Title Loan companies (or car title loan companies) have a bit of a negative reputation surrounding repossession claims, and LoanMart wants customers to know what’s true and what isn’t! Keeping customers in the driver’s seat is priority one with LoanMart. Once a customer has been approved for a title loan, your keys will remain in your hands and free reign of your vehicle is yours; we don’t want to repossess your vehicle! Where would we even put it? LoanMart isn’t like some of the other brokers or lenders that have back lots to store repossessed items—no! Your approval process shows us what type of person we’re dealing with! Though it’s always a possibility with folks that don’t adhere to the rules and the bargain they make, most customers will inform LoanMart when things end up getting a littler tougher, and by doing so, LoanMart is usually able to work with the customer on restructuring their payment plan!
Instead of garnering a late payment fee on top of a missed payment, give LoanMart a call to speak with your agent about what you can do to avoid any sort of mess like vehicle repossession or giant late fees! Vehicle repossession is a dirty subject and we at LoanMart pride ourselves in being a squeaky-clean company that treats their customers like family. Family members help each other out, but to do so, communication is a big part of that! Get approved for an auto title loan today and see what we can do to help you get out of these trying times.
Can a Title Loan Company Take Away My Car?
Someone probably warned you that if you get a title loan and don’t pay it back, the loan company can take away your car. While this can happen if you default, there are a number of steps you can take to avoid missing payments. The first step is to pick the right car title lender.
How Do I Pick A Title Loan Lender?
You need to be careful when selecting a title loan lender. It’s important to do your research. There are a few things you can look for that may indicate a reputable title loan lender:
- Well-established: A company that has been around for several years is likely to have a better reputation than one that opened recently. They will also likely want to protect their reputation for being an honest loan company, especially now that businesses can quickly be ruined by a few bad reviews on the internet.
- Larger company: A larger company is more likely to be well-established. They may also offer a greater variety of loan products and have things like a dedicated customer service department.
- Strong customer service: A reputable title loan lender will never pressure you to accept a loan. Not only that, but they should be willing to explain any part of the loan agreement to you. Ideally, they would also take a look at your unique financial situation to craft a loan that fits your life.
How to Avoid the Worst-Case Scenario
Getting approved for a car title loan does not have to end in you losing your car. There are so many things that you can do to avoid this:
- Commit to paying the monthly deadline on time. Prioritize the payments for your loan above everything else. You might even want to set up some sort of bank automation so that when your salary comes in, the amount needed to meet the monthly payment is automatically deducted from the total so you avoid spending it.
- Tighten your belt when you can. Meeting the monthly payments can really alter your spending habits for the entire loan duration, so you should become as frugal as possible to ensure that you have the finances for this debt. Stop eating out for a while, avoid shopping for non-essentials, etc. After all, you can get back to life’s little pleasures when you are finally debt-free.
- Look for ways to make more money. If you can find the time, look for money making opportunities to do on the side. It can be as simple as taking catering orders for the people who love your baked goodies, selling preloved items online, or offering your graphic design skills for a fee. The amounts you generate can really add up to meet a few payments down the line.
- Use windfalls to make advanced payments on your car title loan. You might get a sudden work bonus, an unexpected cash gift from your favorite aunt, or a nice dividend from a recent investment, these windfalls will really come in handy for shortening your payment periods when you make additional payments.
- Look for an accountability buddy. If you feel that you might slip, enlist the help of someone who will remind you and support you about your payment responsibilities as well as being your “voice of conscience” that keeps you from making unnecessary and tempting purchases.
Still a Good Option
Just because the possibility of having your car repossessed is ever-present, do not let this deter you from considering a car title loan. After all, you are not applying for a car title loan just because you feel like doing so: you are looking for a way to secure a sizable amount of cash to meet a pressing need. It can be a very important payment for something such as an emergency health concern. The urgency of your situation might necessitate a car title loan, and you will still be glad that the option to avail it is present. Also, most car title loans actually have manageable payment amounts per month when you divide the total amount across the number of months or years that you need to pay for it. If you think you will need to make the monthly payable even smaller, ask about the maximum loan payment period so the monthly totals get even more manageable.
A good lender for a car title loan is not out there to dupe you out of your money. They understand that people have times wherein they will need money and they don’t have the amount they require, so lenders have made a business to meet that need. In fact, a reputable lender will provide all types of support to make the entire process easier, going so far as to even help you with DMV-related concerns in situations like you losing your car title.
For as long as you are determined to pay off your car title loan on time, you will surely be able to get your car title back and drive your vehicle without worrying about whether or not it will be the last time that you get to do so. In no time, you’d be free from your payment commitments and go back to your regular routine!
What Are Some Ways I Can Pay Off My Title Loan?
If you are having trouble paying your title loan back, you should speak to your lender immediately. You may be able to renegotiate the terms of your loan and extend your repayment time. You can also try to refinance your loan with another lender. If you do this, they will try and give you a new loan with their company, usually with better interest. Even if you do that, it may be difficult to come up with the money every month to pay your loan. If you need to make some extra money, you can try things like:
- Getting a part-time job – If you work ten hours a week at $10 an hour, that’s nearly $300 a month after taxes.
- Borrowing from friends and family – Depending on the amount of the loan, they may be willing to give you the money for little or no interest. Just be sure you have a strategy in place to pay them back.
- Sell things lying around your house – If you’re like most people, you have a number of useful items around your house that you just don’t need. You can put these things on Ebay or Craigslist and turn them into cash. After all, one person’s trash is another person’s treasure.
- Cut costs wherever you can – Do you buy coffee out most days? What about your lunch? If you make your lunch and coffee at home, you may be able to save up to $300 a month. Do you subscribe to multiple streaming services? You can save money by cancelling them.
You can use a title loan to pay for an unexpected expense in an emergency. If you do, make sure you have a way to repay the loan. Otherwise you may find yourself facing a repossession of your car. While there are a number of strategies people use to try to get out of paying for their loan, the best thing to do is usually to try and pay it off. If necessary, you can do something like get a part-time job to help cover the cost.
How LoanMart Tries to Avoid Repossession
LoanMart isn’t in the business of taking people’s cars. We want to help people get their finances back on track, not make their lives more difficult! That’s why LoanMart makes an effort to set you up for success, so your situation never has to come to repossession.
Here’s how LoanMart works with you so you have the best auto title loan experience possible:
- Convenient Terms– You and your LoanMart representative can discuss your loan contract, and determine the best payment plan that works for your budget. You can enjoy terms ranging from 12-48 months. This means that your monthly installments can be spread out in a way that makes each payment affordable.
- Competitive Rates- Some lenders have astronomically high interest rates because they care more about getting your money than they do about you getting your budget back on track. LoanMart isn’t like that. We want to be BETTER than our competitors who might be out to swindle you out of your hard-earned money.
- No Balloon Payments or Early Payment Fees– A balloon payment is when you are required to pay off your loan balance in full at the end of your loan period. This can be extremely inconvenient, especially when companies charge you extra money for trying to make a payment on your loan earlier than the due date. You don’t have to worry about that with us. LoanMart never requires you to make a balloon payment and we never charge you a fee for making a payment on your loan early.
How Do I Get A Title Loan with LoanMart?
There are three main ways to get in touch with LoanMart about a title loan:
- Signup online
- Call LoanMart at 1-877-878-4923
- Visit a local participating store
After you’ve decided how you want to get in touch with LoanMart, to apply you’ll need to:
- Get your registration form completed
- Get your documents over to your LoanMart representative
- Sign your LoanMart agreement1
Being in need of emergency funds to cover an unexpected expense can be stressful. Thinking about losing your car can make it worse. If you do your research and borrow from a reputable title loan lender, they may be able to help relieve you of much of that stress1. Research your lender and let them help you get your finances back on track.