Title Loan Debt On A Car I Want To Sell One of the great things about our title loans is just how many different situations they have helped people with and why they’re ideal if you have a financial situation that just needs a little boost. One of the key benefits of title loans is […]
Title Loan Debt On A Car I Want To Sell
One of the great things about our title loans is just how many different situations they have helped people with and why they’re ideal if you have a financial situation that just needs a little boost. One of the key benefits of title loans is being able to get them without needing top-of-the-line credit scores or really any credit history for that matter, and usually they help people with their needs so long as they’re used responsibly. But as always, before you get your title loan you need to read all the fine print that comes with it and have a plan in place to repay it as you agreed to. But you might wonder what you should do if things have changed that affect your ability to repay your title loan.
You might use a title loan to pay down a current debt, but you never know what might happen after that debt is paid. You might have other things come up later such as losing a job, an act of God that’s affected other areas of your finances, or any number of things that might have changed your ability to repay your title loan. There are still ways you can get your loan repaid such as refinancing your title loan if your lender’s agreement allows it, pursuing title loan forgiveness if your state legislation has any program for that or any laws that the lender did not follow. But if you’re out of other options, you may have to look into selling a car with title loan debt on it in order to meet your obligation.
Is Selling A Car With Title Loan Debt An Option?
When you have a title loan on your vehicle, the lender places a lien on your vehicle which then gives them ownership or in some states a security interest on the vehicle. In some states, there are extra hoops you have to jump through when you want to sell a vehicle with a lien on it subject to your DMV regulations. But in most cases you can sell a vehicle whether you’ve financed it to pay the dealership, or in this case have a title loan on it. However, you cannot fail to disclose to the buyer that you’re selling a car with title loan debt, and you may need to consult a legal expert on how to have the title transferred to the new buyer in some cases.
Steps For Selling A Car With Title Loan Debt
The first thing you’ll probably need to do when you sell a vehicle that’s still under a title loan is to know whether or not you can sell the vehicle for more than what you owe on your title loan plus any applicable fees. If you can do that the lender more likely than not will approve the sale since they will then get their money back. If the vehicle sale is below what you currently owe on your title loan, you may still be able to to do it but you’ll still be responsible for the difference in the loan, and depending on how significant that difference is, you may have to work out an agreement to the lender to repay that amount. Likely your loan terms will cover what you will need to do if you sell the vehicle and still come up short on what you owe.
Second, you’ll usually need to conduct the sale at the lender’s location even if you applied for your title loan online. This is because the lender will likely be holding the title and will need to have it paid off in order to take the lien off of it. Plus the buyer will be responsible for registering the vehicle in their name once the lender removes the lien and you sign over the title. In some cases you may need an intermediary third party to facilitate the sale between you, the buyer and your title loan just to make sure that it was conducted legally.
Other Things To Know Before Selling Your Vehicle To Pay Off Title Loans
The main thing to remember is the best title loan debt relief happens by only keeping your vehicle under a title loan for the short-term. Title loans are not meant to be a long-term borrowing option and the sooner you make your payments on it, the less likely you’ll accrue debt. Also, while rolling over a title loan might help in some cases, sometimes you’re better off selling the vehicle instead of rolling it over into a new term so that way you don’t fall behind on new payments.
Car Title Loans on Older Cars
Most car title lenders prefer loaning money on newer vehicles. However, some will extend loans on older cars if the car is in great shape and is worth money. Whether your car is old or new, you can only get a loan if the car is fully paid off and your title to it is lien-free.
Getting an auto title loan on an older car us a borrowing option for you if you have damaged credit, as most lenders won’t even run your credit history. However, if you don’t make your payments, there are consequences if you go into default.
What Happens if I Don’t Pay a Title Loan on an Older Car?
Not repaying your car title loan, even if it’s on an older car, is typically repossession. This is usually what happens:
- You’re notified in writing that you’re in default and risking repossession.
- Your car is repossessed.
- You’re given time to pay your loan in full and pick up the older car.
- If you don’t, your car is sold at auction.
- Any money above and beyond your loan costs is usually given back to you.
Lender usually try to avoid repossession. It isn’t a cost-effective strategy, as taking a car to auction is no guarantee of a sale and repairs may need to be made before a car will sell. Most lenders will work with you if you run into trouble making your payments, so stay in touch no matter what’s going on.