Title Loans to Buy a Car: What You Need to Know

While conventional wisdom might lead you to believe using title loans to buy a car isn’t possible, the reality is quite different. A title loan could be the exact tool you need to get a down payment or purchase another car outright when you need a second car and don’t have the cash on hand. What’s more, your credit history will play a very small role in the lending decision.¹ Here’s what you need to know to use title loans to buy a car.

What is a Title Loan?

An auto title loan gives you the ability to use the equity in your existing car or truck as collateral for a loan, provided you are 18 years of age or older and live in the state in which you are applying for the loan. Because the title to your car secures the loan, your credit history isn’t the primary determining factor in being approved for the loan. A lien is placed against the title when you accept the funds and removed when you repay the loan in full. Meanwhile, you can continue using your car as you would normally, as long as your payments are kept up to date.

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How Much Can I Borrow?

When borrowing against your car’s title with a loan serviced by LoanMart, the amount offered depends on the value of your automobile and your ability to make on-time payments.¹ Your car’s value is determined by its age, condition, mileage and what it would bring if offered for sale on the open market.

The exact amount you borrow can be your decision, as long as it’s within the range for which you’ve been approved. The maximum you can get is usually up to half of what the vehicle you’re providing as collateral is worth – up to a maximum of $15,000.¹ And, unlike traditional personal loans, qualifying can be a lot easier because the loan is secured by the title to the automobile you pledge as security for the vehicle title loan.

The Benefits of Using a Title Loan to Buy a Car

One of the key benefits of title loans is the speed with which you can get the funds you need. The application process can take as little as five minutes, and approval sometimes happens within an hour.¹ Once the loan is approved, funds are often available within one business day – if not sooner.³ Plus, there are a variety of ways to receive the loan proceeds and repay them – some of which don’t require banks to be involved at all.

Funds can be delivered via: 

• Cash pickup at participating money transfer locations
• Wire transfer
• ACH deposit
• Check

Loan payments can be made via:

• Recurring payment (using debit cards or bank accounts)
• Telephone payment
• MoneyGram
• Cash payment at participating money transfer businesses

How to Get a Title Loan For a Car Purchase

You may be pleasantly surprised to see how streamlined and convenient the car collateral loan application process is with LoanMart-serviced title loans. All you need to do is:¹

• Complete the brief online form or call 855-422-7412 to apply over the phone
• Once approved, submit the required documents (listed below)
• Review and sign the loan agreement
• Mail in your title

Once you have completed the above steps, the loan proceeds are disbursed using the delivery method you’ve chosen. Upon receipt of the funds, you can use the money however you wish, including as a down-payment for another car, or as cash to purchase another vehicle outright. Since title loan funds can be used for any personal or household expense, it is possible to use this type of loan as a quick cash option when looking to buy a vehicle, even though title loans were not primarily with that in mind.¹

What Documentation is Needed?

Minimal paperwork is one of the hallmarks of LoanMart-serviced title loans. The entire process is designed to help you get the cash you need – fast.³ Here’s what you’ll need to provide:

• Valid government-issued photo ID
• Proof of income such as paycheck stubs (alternative sources like alimony, Worker’s Compensation or Social Security are also acceptable)
• Proof of residence (for example, a utility bill or current lease agreement)
• Recent, clear photos of your car’s interior, exterior, odometer and Vehicle Identification Number
• A clean title document for the automobile in your name
• In some cases, a DMV form granting permission to place the lien

Why Choose a Vehicle Secured Loan Serviced by LoanMart

Borrowing against your car with an auto title loan serviced by LoanMart is easy, convenient and hassle-free. What’s more, you’ll find these loans have competitive interest rates when compared to similar types of lending. Granted, title loans can be more expensive than borrowing through traditional financial institutions. However, the online application process – which can be done any time, day or night – is convenient and far less time consuming. Further, your credit history isn’t necessarily a barrier to getting approved. Plus, the LoanMart customer service team is very helpful and can also provide assistance in Spanish. Apply today for your LoanMart-serviced title loan today!