Can I get a title loan on a financed car?

I’m in desperate need of some extra cash. I want to apply for a title loan, but my car is financed. It’s almost entirely paid off, but I still owe about $1,000. Can I get a title loan even if it’s still financed?

Bonnie Stinson · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
In some cases, you can get a title loan on a car that is financed.
While there are no legal restrictions to getting a car title loan on a financed vehicle, this type of loan usually comes with a very high APR (like up to 300%) and late payment fees. You may also be required to pay it off relatively quickly.
Consider this first: While a title loan may seem like a good idea in the short term, you may run into problems in the long run. In a worst-case scenario, you could even lose your car if you can’t make your payments.
Here are some alternatives to a title loan that have a lower APR—and you don’t have to risk losing your car:
  • Refinancing
  • Personal loan or payday advance loan
  • Credit cards
  • Ask friends or family for a loan
If you have decent credit, a debt-to-income ratio less than 43%, and income to support the loan,
auto refinancing
is far less expensive in terms of interest paid over the life of the loan.
If refinancing or another loan option above won’t work, then a title loan may have to do.
If you need to get a title loan: Many lenders will not approve a title loan against a car unless you own it outright, but some will give you a loan based on your car’s equity.
If you have positive equity in your vehicle or your car is worth more than your loan balance, you’re more well-positioned to get a title loan than if you were
upside down
on the loan.
Here are some items you may need to apply for a title loan:
  • A completed loan application
  • Your vehicle’s title
  • Your driver’s license
  • Financial documents for your car, including the remaining balance of the auto loan
  • Proof of income
The lender will inspect the vehicle to determine its value and offer you a proportional amount. You should also shop around and compare offers from multiple lenders to find the best rate.
Here are a few questions to ask before you sign the paperwork:
  • What is the annual percentage rate (APR)?
  • What are the due dates of payments?
  • How much do I need to pay back?
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.

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