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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. It makes sense to be worried about this if it blocks your chances of selling your car. The answer is yes, but you will need to make sure that you have paid off the car title loan before you will be able to transfer the title to the new owner. 

With loan options like LoanMart, you can pay your loan amount quickly with an easy and flexible payment process if you want to sell your car now.³ No matter when you decide to sell your vehicle, you can choose loan terms with LoanMart that are convenient for what you want.¹ Go online to see what LoanMart can offer for you!

Before I Decide to Sell a Car with a Title Loan on It, How Do Car Title Loans Work?

Car title loans allow you to use your vehicle’s title as collateral for the money you secure. The way the collateral works with a title loan is that a lender uses the positive equity available from your vehicle to determine your loan amount. Collateral also assures a lender that you will meet your payments one way or another.

 LoanMart uses your ability to pay back the loan and the market value of the car to determine the loan amount. You don’t need a full-time job for this requirement; as long as you have an alternative form of income or other proof of income, you could still be eligible for a title loan.¹ Bank statements, pay stubs, or even documents proving SSI income can work as proof of income.

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If you’re like most borrowers, there might be a chance that you do not know the amount of available equity in your vehicle. That’s fine and normal, but it doesn’t mean you would have to wait for a lender to determine the value of your car. With title loans serviced by LoanMart, you could always use an online calculator tool to obtain an estimate of your car’s equity and receive a loan quote free of obligation. You will have to input some details from your car to use it:

  • The Make, Model, and Style of the Vehicle
  • The Year of the Vehicle
  • The Current Condition of the Vehicle
  • The Car’s Current Odometer Reading
  • Any Modifications Done to the Vehicle

With a car title loan, there will be a lien placed on your vehicle’s title. 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.¹ The lien is removed once the loan is paid in full!

When you inquire about a title loan serviced by LoanMart, you could get your cash in as little as 24 hours!³ It only takes a few minutes to go online and get started on the title loan process.³ You can always contact a representative from LoanMart with any questions you may have.


Selling a Car with a Car Title Loan on It

It’s not a simple process, but you can sell a car with a title loan on it. Whether you plan on using the money from your sale or you plan on finishing the payoff while it’s up for sale, you will have to inform interested buyers that you are finishing paying off the title loan.

While you have a car title loan, a lender places a lien on your car title. That means that the car’s title technically belongs to the lender with whom you have the car title loan. You use your car title as collateral for the loan, which means you are paying off a hold they have over your loan. The lender will not release the lien until you have paid off that loan, and the car will not be yours to “give away.” The collateral gives a lender the security in that you will meet your payments in their entirety. If you fail to complete the loan, the lender might sell your vehicle to recoup the lost loan amount.

So your options right now are to pay off the title loan first before doing anything else. LoanMart can help set you up with a payment schedule that works for you. If you want to pay your loan amount in a short period, you can do just that; keep in mind that your income level is an essential factor in this decision because you must be able to afford to pay off an entire loan in that short duration. Unlike most loan options, you can pay your loan early without any prepayment penalties.5 You can also pay the whole loan amount in one installment if you choose to do so. 

LoanMart is flexible in letting you decide how you want to approach your payments. You can also pay off a car title loan via mail, in person, or with the ease of doing it online!¹ If you have any questions about the repayment process, call a representative from LoanMart today at 855-277-4847 to help break it down for you!

How to Transfer the Vehicle’s Title After You Sell a Car with an Auto Title Loan

Unfortunately, you will not be able to officially transfer the title of the car to the new owner’s name until you have paid off the car title loan. 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 title 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. Perhaps it’s best to wait on advertising the sale of a car with an auto title loan until you have paid off the loan amount in full.

Many people want to pay for the car and instantly receive the title change in their name. If you have a car title loan on the vehicle 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 challenging to sell your car that way.

But once you have completed your payments on a loan, it would be good to know how to transfer your vehicle’s title to a new owner. Although it can vary depending on the state you live in, you can expect to follow this general path:

  1. The seller will sign a release form to relinquish ownership of the car title to its new owner. Some states might require you to submit additional documents to complete the transfer, such as the sale price.
  2. If you are the sole owner of the vehicle, you are responsible for sending the documents, signing the form, and transferring the title. If you share a name with someone else on the title, you would have to look at its details to determine the next step. If there’s an “OR” in between names, that means either one can complete the transfer on their own, but if there’s an “AND” in between names, then both parties must sign the release form and send documentation.
  3. Once that is completed, the buyer would have to take the auto title to their local Department of Motor Vehicles(DMV) to issue a new title.

How to Sell Your Car With a Title Loan

It may be easier to sell a car with a car title loan by paying off the title loan first. That will make 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 you have paid the loan, 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 profit from your car.

If you decide to sell your car with a title loan, the sales process can vary if you sell it through a dealership or a private party. Selling your car through a dealership is often easier than selling with a private party, but it comes with the cost of getting less money than you would be if you sold it privately. A dealer might offer to help you pay off the entire loan amount, as well as take over the title transfer process for you. But know that a dealer might not give you enough money for the sale because they’re looking to get some cash. If you choose to sell your car to a private party, you might still have to pay off the title loan before making the transaction, or in some cases, you can find someone to help you with your payments. 

Although these are not terrible options to go with, it might still be better for you to complete your title loan installments before selling your vehicle. You might save time and money by going in that direction instead of selling your car with a title loan still on it. If you need any help during the repayment process, LoanMart is available to assist you throughout all of it. Go online or call an expert today to see what they can do for you!

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.¹ We offer some of the most competitive interest rates in the title loan industry, giving our customers lower monthly payments.¹ Our customer service ensures that you’ll get the outstanding service you need. Our representatives work 6 days a week to ensure your loan works for your lifestyle and fits into your budget.

You can apply with LoanMart in one of three ways:

  1. Apply with our online application through your phone, tablet, or computer.
  2. Call us at our toll-free number and complete the application over the phone with a representative.
  3. 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(Vehicle Identification Number), license plate, and odometer reading
  • Proof of income
  • Proof of residency
  • Pictures of the vehicle(front, back, and all four sides of the vehicle)
  • Some personal references

After you’ve submitted your documents, you’ll receive your new monthly payment quote and be able to sign your new contract.¹ LoanMart will pay your previous lender to release the lien on your title, and LoanMart will place their own.

You’ll have access to excellent service with a customer service team that cares about your needs! You can even download our app and make payments from your phone! Call LoanMart at 855-277-4847 today to see if you can qualify for a car title loan or start your application now! 

It takes no time to get started on the inquiry process!³ With loan options like LoanMart, you may receive your funds in as little as 24 hours!³