What is a Lien on a Car Title Loan?

 
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What is a Lien on a Car Title Loan?

At LoanMart we can place a lien on your car’s title when using your vehicle as collateral. Liens are placed on vehicles that have been used as collateral. A lien is a right to keep possession of property belonging to another person until a debt owed by that person is paid off.

What is a lien for?

The title of the car that you own is in your name, but if there’s a lien on the title, the car title loan lender such as LoanMart adds their name to your title to possess legal rights on that vehicle. The good thing with us is that we don’t keep your vehicle while you are repaying the loan. Instead, we let you drive it while making the payments.

Adding a lienholder to a car title is done so the lender can use your car as collateral to ensure repayment on the title loan.

  • We will make sure the terms of your loan are disclosed  to ensure that you can repay the amount with little struggle.
  • After the loan is signed we add a lien on your car title. The unique thing about us is that we don’t keep your car.
  • The best part is you will still get to drive away with your car. Once you have paid the loan in full, we will release the lien on your car title.
  • When we approve a title loan on a financed car or refinance your loan from another lender, we will cover the outstanding balance. As a result, the lender will release the lien on your car’s title. Then we can put a new lien on your car’s title in place of the old one.

LoanMart has been in the car title loan business for more than 10 years and over that time we have gained the experience to make the lending process as easy and seamless as possible. We are the leading car title loan lender on the West Coast with multiple participating stores. We have developed various tools to help with the loan process, so that it doesn’t take more than 24 hours to get your money3. You can access your account online as you would a bank account. Our customer’s representatives are also ready to answer your questions anytime if you want to chat with them online. Keep reading to find out more about liens and car titles.

Turn your car into cash

The idea of someone using the money paid against an owned home (equity) is not as easy as it should be. This has made people turn to an asset –their cars- that they may have never thought of before. It is easy to secure some money out of your cars, which are investments, and we can help you do it. You can use the title of your car as collateral to get a loan from LoanMart1. In other words, you can get access to money from your vehicle while retaining ownership.

At LoanMart, we can use your truck, car or any other vehicle model to help get a loan for yourself1. Helping people who need money during emergencies gives us satisfaction. The process of securing a loan using your car is very easy. All our team members, including our service representatives, are always there to help you know about the process and give you the best option for whatever financial situation you might be in.

LoanMart will retain the lien until the loan is fully paid. Terms are often tailor-made for different needs, so that you can repay the loan comfortably. This is a way of making sure that we both benefit from the transaction.

An Unsecured loan vs. a Secured Loan

There are two different types of loans; secured and unsecured loans. An unsecured loan is not backed up by any type of collateral rather the loan is given based on the credit score or the trustworthiness of the borrower. The lender considers this a high-risk loan because it is not a secured loan, and is not secured by collateral. The loans are also processed slowly because it takes long for the lender to determine your trustworthiness through methods such as student loans, credit cards and payday loans.

On the other hand, a secured loan is secured by collateral, such as a vehicle or house. The lender will hold the title of the house or the car which acts as a security interest. Our title loans offer a substantial amount of money compared to an unsecured loan. The amount that one is approved for  depends on the equity in one’s vehicle and ability to repay the loan1. Common types of secured loans include auto title loans, mortgages on a house and financing for the purchase of a car.

Car title loans

Car title loans use your car’s title as collateral for a loan. Car title loans are a solution for those who need quick money to handle unexpected scenarios. Car title loans allow you to access money that you need while keeping your car in the process. At LoanMart, we give you an opportunity to turn your car into real cash1. Our process is simple due to our online application system where we can lend you money without having to hold these things, you can be on the way to financial security as soon as this week. Many customers find it satisfying that they can keep driving their cars without any restriction while making monthly payments. Get started with a car title loan today with LoanMart!

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