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Can you scrap a car with a title loan?

I drive an old sedan that has been nothing but a pain to keep on the road. After the last repair estimate, the mechanic said I should scrap the car rather than pay for the repairs, and I have no problem ridding myself of this burden, but I took out a car title loan on the vehicle. Can you still scrap a car even though it has a title loan?

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Jack Walsh · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
It’s good you recognized investing more money into your old vehicle is not a wise decision. Unfortunately, you cannot scrap a vehicle with a title loan because you do not own the vehicle outright.
To scrap the vehicle, you need to pay the remaining balance of your loan or contact the lender to find a solution that leaves you both satisfied. Occasionally, the lender may take possession of the vehicle in its current condition and consider the debt settled, but it depends if they can recoup their losses or not.
Alternatively, if you get a quote on your vehicle that is more than you owe, the lender may allow you to sell the car and then pay the remainder of your loan.
Once the debt has been settled and you are shopping for a new vehicle, don’t forget to buy
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