If you have missed your car title loan payment or are concerned about what happens when you default on car title loans, LoanMart wants to educate you on the consequences and ways to prevent defaulting. When you default on a car title loan, your vehicle can be repossessed by your lender.
What is Defaulting on a Car Title Loan?
When you have a car title loan, most lenders make you repay the loan every month. If you start to miss your monthly payments and continue to miss them without any communication to your lender, the delinquency can result in car title loan default. A car title loan default is the failure to repay a loan according to the terms agreed upon in your contract.
LoanMart does all we can to make sure that defaulting on your loan is the last event to happen. Other lenders make themselves unavailable or not understanding, while LoanMart makes ourselves accessible to our customers and helps you get yourself back on the right track. We may be able to adjust payments with customers to fit their lifestyle, circumstances, and budget.
How Many Payments Are Missed to Default?
Rules regarding defaulting and repossession can vary depending on the state you live in. Most contracts with lenders will say when the missed payments are considered defaulting, and how long the borrower has to contact the lender before they repossess the vehicle.
LoanMart stays in contact with their customers to ensure you do not default on your loan. We don’t want you to have to handle the stress that comes with defaulting on a loan, so we make sure to be in contact with you when you have missed a payment.
What Happens When You Default on Car Title Loans?
Because you are using your vehicle’s title as collateral for your car title loan, a lender is permitted to seize the vehicle at any time without notice, which could possible mean coming onto the borrower’s property to do so. The lender then repossesses the vehicle, typically taking it to a tow site.
With some lenders, you may be able to get the money you owe to the lender before they repossess the vehicle, but after the car title loan has defaulted. Some lenders may even send a notice of repossession to give you the chance to pay off the loan.
With LoanMart, the last thing we want to ever happen to you is for your car to be repossessed because of a default on your car title loan. Our customer representatives are available to answer your calls 7 days a week. While some people may feel afraid to talk with their lender when they are close to defaulting, we encourage you to contact us to make arrangements.
What Happens if Your Car is Repossessed?
Once the borrower’s vehicle has been repossessed, the car title loan lender can choose to sell the car at an auction. Any of the money that they acquire from the auction will go towards the remaining balance of the loan. If the auction gives more money than the loan is worth, the lender has to give the remaining money from the loan difference back to the borrower that defaulted on the loan. If there is any property within the vehicle, the lender must return it to the borrower.
If you are currently working with a lender to try and fix your defaulted loan, but they are not supportive or encouraging, LoanMart can help you refinance your loan with your other lender1!
LoanMart works with our customers so repossession is the last resort. It is the last thing we want to do. We believe it is more beneficial for both customer and company for the life of the loan to be completed without any problems. That’s why LoanMart provides customers with the resources to understand what happens when you default in order to prevent it or give customers options to solve it. We encourage calls from our customers who are struggling with payments, or from customers of other lenders who want a better service.
Refinancing with LoanMart
If you are currently talking to a lender to try and fix your defaulted loan, but you find they are giving you a hard time and causing excess stress, call LoanMart to help you! We can help you refinance your loan, so you don’t have to worry about repossession1.
In fact, LoanMart may be able to get you a better car title loan deal with a lower monthly payment by refinancing with us! You could potentially have more money in your pocket, as well. LoanMart pays off the outstanding balance on your loan with your other lender, then works with you on a new payment plan for your loan with LoanMart.
Apply with LoanMart
Applying to refinance your car title loan is very similar to our normal car title loan application process. Some of the steps may be adjusted, but overall, it’s the same concept!
Fill out our online application with your phone, tablet, or computer. Or, you can call a representative to apply over the phone. You can even come into one of our stores and apply in-person. Whichever is easiest and most convenient for you!
2. Submit Documents
After you’ve submitted your application, a LoanMart representative will be in contact with you. Once they are, let them know you are trying to refinance an existing car title loan. They will ask for some important information regarding your vehicle and your current car title loan.
3. Problem Solved!
After LoanMart has gathered all the necessary information and paid off the remaining balance with your current lender, you’ll set up a new and improved payment plan with LoanMart. You may even receive more money in your pocket depending on your car value to balance. Once you’re settled with LoanMart, you’ll have a lower payment and better service!