You can apply for a car title loan if the title is signed over to you.

Signing the title over legally transfers ownership of the vehicle from the original owner to you. This is the first step in applying and qualifying for a title loan, as you must provide proof of ownership of the vehicle.

How Do Title Loans Work?

Title loans are loans against your vehicle’s equity. If you own your car without any loans, you may be able to borrow against the value, giving up your title in exchange for the funds.

Many title loan lenders allow you to borrow 25% to 50% of your car’s value, but some may go as high as 70%.

For example, if your car is worth $10,000, you may be eligible to borrow $2,500 to $5,000. But you should never borrow more than you need, as the interest rates on title loans could get into the triple digits.

The good news is that when you borrow a car title loan, you keep your vehicle and can drive it like normal. The only thing you cannot do when you have an outstanding title loan is sell the car.

You cannot do this until you have possession of the car’s title again after you pay the title loan in full.

How Much Can You Borrow?

Title loan lenders usually lend $100 to $15,000 or more. The amount you may borrow depends on your vehicle’s value, whether you have any loans and the monthly payment you can afford.

How To Qualify for a Title Loan

To qualify, you must meet the following:

  • Be at least 18 years old
  • Own a car with your name on the title
  • Own the car without any loans
  • Have adequate proof of income
  • Have a valid driver’s license
  • Have proof of insurance if required
  • Provide pictures of your vehicle 

What Does Title Ownership Mean?

Title ownership means you legally own the vehicle. You cannot prove that you legally own the car without your name on the title.

The state issues the car title, and it stays with the vehicle for its lifetime. The title must reflect the new registered owners whenever the car changes owners.

Reasons Your Name May Not Be on the Title

If you are the car owner, you’d think your name would automatically appear on the vehicle title, but it’s not an automatic process. Here are some reasons your name may not be on the car title.

  • Inheritance:  If you inherited a vehicle from a relative, you must go through the title transfer process to get the vehicle title in your name. To do this, you must have the original title and certified documentation proving the transfer of ownership.
  • Receiving a car as a gift: You may also receive a car as a gift from a relative. In the excitement of receiving the vehicle, you may forget that the title must be in your name to have legal ownership.
  • You have an auto loan: If you have an auto loan on your car, it’s a secured loan that uses the car as collateral. Until you pay the loan off in full, the auto loan lender holds the title and is the ‘owner.’

How To Get a Title Signed Over to You

To get the title signed over to you, use the following steps.

1. Gather the Necessary Documents

To get a signed-over title, you need documentation proving your identity and the documentation to transfer ownership.

This means either a bill of sale and title signed by the buyers and sellers if you bought the car or legal documentation proving the original owner approved the transfer of ownership.

2. Have Proof of Any Name Changes

If your name is different from what appears on any documentation, especially in the case of inheritance, have legal proof of the name change, such as a marriage license, divorce, or court papers.

3. Visit Your Local DMV

You cannot transfer ownership of a title online or by mail. You must personally visit your local Department of Motor Vehicles to transfer ownership.

4. Pay the Necessary Fees

Most states charge registration fees to change ownership of a vehicle title. Call ahead or look online to determine what your state charges and the methods of payments they accept.

Can You Get a Title Loan Without the Title in Hand?

You cannot get a title loan approval without the title in hand. Any title loan company will require proof that you are the vehicle’s legal owner and have the right to borrow an auto title loan. However, there are a few exceptions:

Note: You can apply for a duplicate title if you don’t have the vehicle title because it was lost or stolen. If you don’t have ownership of the vehicle yet, you must take the above steps to transfer the title ownership to you.

Requirements To Get a Title Loan With a Signed Over Title

You can apply online or in person for a title loan when you have a signed-over title. Here are the basic requirements most title loan lenders require.

Adequate Income

You must prove you have the income to qualify for a title loan. Many title loan lenders allow non-traditional income, such as a pension, unemployment, worker’s compensation, or any other stable income, for loan approval. The key is having adequate proof of receipt of the income.

Proof of Ownership of the Vehicle

You must prove you are the vehicle owner. This is only possible with a vehicle title with your name on it. If you own the vehicle with another person and the title has the word ‘and’ between your names, both parties must sign for the title loan.

Proof of No Liens on the Title

Most title loan lenders require you to own the vehicle with no loans. If you have a small outstanding balance, you may be able to apply for a title loan that includes the funds to pay off the existing loan.

The title loan lender must possess the title, which can’t occur if you have outstanding liens because the original lender has first rights.

Ownership of a Vehicle With Equity

You must prove you are the vehicle’s rightful owner, and it must have equity. The car is the lender’s collateral, so they need enough value if you don’t meet the loan agreement terms.

Proof of Auto Insurance, if Required

Many states also require you to prove you have adequate car insurance when applying for car title loans. You must at least carry the amount of car insurance your state requires.

Can You Get a Title Loan with Registration?

In most states, you cannot get a title loan with registration. The only state this applies is Arizona, where you may be eligible to apply for a registration loan because title loans are outlawed in Arizona.

Alternative to Title Loans

Title loans have high-interest rates and risky terms. Exhausting your alternatives first is essential, including:

  • Borrow from friends or family
  • Apply for a credit union or bank personal loan
  • Payday loans

Final Thoughts

If you have a title signed over to you and own the car without any liens, you may be eligible to apply for an auto title loan. However, ensure you only work with legitimate title loan companies.

If you’ve exhausted all other options and need money fast, we offer a fast and simple online title loan process. You could have funds in 24 hours or less if you have the proper documentation. Contact us today to learn more.

Written by Samantha Hawrylack

Written by

Samantha Hawrylack

Samantha Hawrylack writes for our company and is an expert in personal finance. Sam received her Bachelors of Science in Finance and her Masters in Business Administration from West Chester University of Pennsylvania. She began her career in the financial services industry and shifted to an entrepreneurial role where she could directly impact clients. Sam has an impressive background in personal finance and business management.