Second Lien Title Loans

What are Second Lien Title Loans?

If an unexpected expense has wrecked your budget, you may wonder if you can get a title loan to handle your financial situation. A car title loan is a type of secured loan that’s primarily based on your vehicle and income.¹ With this loan option, you can use the title of your car or truck as collateral to secure the funding, making the application process much more flexible compared to many other loan options.

However, the application process may be complicated if you do not have a clear title in your name. A clear title means that it is free of any liens that could affect the ownership of the vehicle.

When you don’t have a clear title, that means someone currently has a lien against it. A lien on your vehicle title can be placed by an auto lender if you are financing your car, by a title lender if you currently have a car title loan, or by a different business. For example, if you don’t pay a car mechanic for work done on your vehicle, the repair shop can place a mechanic’s lien on your car.

In order to service customers whose vehicle currently has a lien, some title loan lenders offer so-called second lien title loans, including car title loans on financed cars. A second lien title loan can allow you to apply for a title loan without a clear title.

How Do Second Lien Auto Title Loans Work?

In most cases, in order to get a second lien title loan, your existing lienholder must grant the second lienholder permission to place a second lien on the vehicle title. This can make the second lien title loan process more complicated compared to a regular title loan. In some cases, the existing lienholder may not allow a second lien on the title.

Also, in order for a lender to be able to place a second lien on your vehicle, the state in which your car is titled must allow multiple vehicle liens at the same time. Several states however only allow one active lien per vehicle.

Lastly, as the name suggests, a second lien holder is only second in line when it comes to rights to the vehicle. In the event that the vehicle is sold to satisfy the amounts that are secured by the vehicle, the first lien holder is paid first.

For the above reasons, it’s not surprising that many title lenders do not offer second lien car title loans. The complexity of the process and the riskier nature of being in a second lien position makes second lien lending a very specialized and rare offer.

Can You Get Another Title Loan if You Already Have One?

If you are searching for a second title loan, you might be wondering, “Can you have more than one title loan?” Even if you can’t find a second lien title lender in your state, it can be possible to get a title loan on a financed car, or refinance your current title loan!

Also, if you have two separate vehicles, you may be able to obtain a second title loan, thus having a title loan on each vehicle. However, you will only be able to have two title loans at the same time if you meet the lender’s underwriting criteria, such as providing proof of income to demonstrate your ability to repay both of the loans.¹

If you are wondering, “Can I get a 2nd title loan on my car after I pay off my first title loan?” The answer is yes! Generally, you can use the same vehicle more than once to get a title loan. In some cases, customers serviced by LoanMart will pay off their title loan and use the same vehicle to obtain another title loan at a later date. But, your car may have depreciated in value. Therefore, you may not get as much funding the second time around.¹

Second lien title loans may not be the right choice for everyone and may not be available in your state, but there are other options to consider! You can potentially refinance your existing title loan to obtain more optimal loan terms and competitive interest rates. Borrowers who are still making payments on their cars can potentially apply for title loans on financed cars.¹

Whether you need a 2nd title loan, a title loan on a financed car, or you need to refinance your current auto title loan, there are a number of options available. And, LoanMart is here to discuss all of these options with you! Call 855-422-7412 to learn more about title loans and how to apply for one.¹

Can I Get a 2nd Title Loan Online?

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In order to get a 2nd lien title loan online, you must submit an application with a title lender, so you may need to shop around to find one. Additionally, if you want to apply for second lien title loans, it may be necessary to show proof of the original lien during your application, along with a few other basic documents. Usually, you will need to provide a valid, government or state-issued photo ID, proof of income and residence, and a few photos of your car.

Generally, you must meet these requirements to initially qualify for an auto title loan:¹

• Have a Steady Source of Income / Alternative Income
• Possess a Vehicle with Enough Positive Equity
• Be at Least 18 Years of Age
• Have a Title to a Qualifying Car in Your Name

Can You Get an Auto Title Loan with a Lien on Your Car?

It depends. Some title lenders can offer second lien title loans, but many do not. If you’re still making payments on your car, a lien will remain on your title until the loan is completely paid off. But, even if you’re currently financing your vehicle, you could still get a title loan serviced by LoanMart if you have enough positive equity in your car and meet the lending criteria.¹

Positive equity simply means that the current market value of your vehicle surpasses the amount you owe on it. In order to obtain a title loan on a financed car, a written permission and authorization form may be requested so that the title lender can obtain information about your current auto loan and pay it off. 

How Many Title Loans Can You Get?

The number of title loans you can have simultaneously will depend on a few different factors, including your income, the lender’s policies, and your ability to meet the necessary requirements. In some cases, your current state of residence can affect the number of title loans you are able to get.¹

Can I Have Two Title Loans on the Same Car?

You can have two title loans at the same time, but not with the same vehicle. If you have more than one qualifying vehicle in your name and have the means to repay an additional title loan, you may qualify for a second title loan.¹

Where Can You Apply for Second Lien Title Loans?

You can shop around for second lien title loans online. Not all title loan lenders can offer second lien title loans, so you may need to do a little bit of research and contact multiple lenders before you can find one who is willing to work with you. Some title lenders can provide an online application process, which can be more convenient than visiting a storefront location.

You can also apply for a second title loan or a title loan on a financed vehicle online. There’s no store visit required to apply for an online title loan serviced by LoanMart. Additionally, you can apply for title loan refinancing online!¹

The application process is just three simple steps:¹

• Apply Online or Over the Phone at 855-422-7412
• Upon Approval, Upload a Few Basic Documents Online¹
• Sign Your Loan Agreement and Get Your Funds

The process is straightforward and hassle-free! Dial 855-422-7412 for more information. LoanMart title loan agents are available six days a week for extended hours to take your call!