Can You Get a Title Loan on a Financed Car?

Still making payments on your car but need cash fast?

You are not alone. Many people wonder if they can get a title loan while still paying off their auto loan. The answer is yes, it is possible in many cases.

Even if your car is not paid off, you may qualify for a title loan if you have enough equity in your vehicle. The lender pays off your existing loan and gives you the remaining cash.

For example, if Lisa owes $5,000 on her car and the car is worth $15,000, she has $10,000 in equity. A lender offering 50% of the car’s value could approve her for $7,500. After paying off her $5,000 balance, Lisa receives $2,500 in cash.

Key Takeaways

• You can get a title loan while still making payments if your car has positive equity.
• The title loan lender pays off your existing auto loan and becomes the new lienholder.
• Most lenders offer 25% to 50% of your car’s value, minus what you still owe.
• You need positive equity. If you owe more than the car is worth, you likely will not qualify.
• Check if you qualify for free with no obligation by applying online.

Can You Get a Title Loan While Still Making Payments?

Yes. If you are still making payments on your car, you are not automatically disqualified. What matters is your equity and your ability to repay the new loan.

Many borrowers get title loans while still making payments on their vehicles. The key is having positive equity. This means your car is worth more than what you owe.

How to Check Your Equity in Just 3 Easy Steps

Use this simple formula: Car Value – Loan Balance = Your Equity

• Step 1: Check your car’s value on Kelley Blue Book, Edmunds, or NADA Guides.
• Step 2: Find your remaining loan balance on your latest statement or call your auto loan lender.
• Step 3: Subtract your balance from the value. A positive number means you have equity.

Example: If your car is worth $12,000 and you owe $4,000, you have $8,000 in equity.

What Happens to Your Existing Auto Loan?

A car that is not paid off simply means there is an existing lien on it. The original lender (usually a bank, credit union, or auto finance company) holds the title until you pay off the loan.

Title loan lenders who work with financed vehicles will pay off your existing loan as part of the process. This is sometimes called a second lien title loan or title loan on a financed car.

What You Need to Qualify:

1. Vehicle registration in your name

2. Positive equity in your vehicle (calculate your equity here)

3. Proof of income to show you can repay (paystubs, bank statements, or other proof)

4. Valid government-issued ID

5. Current loan payoff amount from your existing lender

State-Specific Rules for Title Loans on Financed Cars

California

California allows title loans on financed vehicles if you have positive equity. At Montana Capital, our minimum loan amount is $2,600 with terms from 12 to 36 months. We are licensed by the DFPI.

CA The Key Details:

Texas

Texas permits title loans on financed cars through licensed credit access businesses. There is no maximum loan amount. Lenders must clearly disclose all fees and interest rates before you sign.

Florida

Florida allows title loans on vehicles that are not paid off. Florida title loan laws require lenders to provide full disclosure of loan terms. Maximum loan amount is typically 50% of the vehicle’s value.

Georgia

Georgia permits title loans up to $3,000 or 50% of fair market value. Lenders offering title loans in Georgia must be licensed. You can get a title loan on a financed vehicle if you meet equity requirements and can demonstrate your ability to repay.

What Are the Risks?

Title loans come with real risks you should understand before applying. According to the Consumer Financial Protection Bureau, about 1 in 5 borrowers lose their vehicle to repossession.

• If you cannot make payments, you could lose your car.
• Interest rates are typically higher than traditional bank loans.
• Missing payments can damage your credit score.
• You will owe more total than you borrowed due to interest.

Only borrow what you can afford to repay. Use our title loan calculator to estimate your monthly payments before applying.

Frequently Asked Questions

1. Can I Get a Title Loan if I Still Owe on My Car?

Yes, if your car has positive equity. The lender will pay off your existing loan and give you the difference in cash. You need to owe less than your car is worth.

2. Can You Get a Title Loan While Still Making Payments?

Yes. Being current on your auto loan payments actually helps your application. The lender cares about your equity and your ability to repay, not whether the car is fully paid off.

3. How Much Can I Borrow on a Financed Car?

Most lenders offer 25% to 50% of your car’s value. From that amount, your existing loan balance is paid off first. The remaining amount is yours to keep.

4. Do I Need the Title if My Car Is Financed?

You do not need to physically have the title. Your current lender holds it. The new title loan lender will coordinate with your existing lender to pay off the balance and transfer the lien.

5. Can I Get a Title Loan on a Financed Vehicle With Bad Credit?

Yes. Title loans are secured by your vehicle, not your credit score. Lenders focus on your car’s equity and your income. Bad credit title loans are available for qualified borrowers.

6. What If I Owe More Than My Car Is Worth?

If you have negative equity (you owe more than the car’s value), you likely will not qualify for a title loan. Consider other loan options or wait until you have paid down more of your balance.

7. How Long Does It Take to Get Approved?

Most applications are processed the same day or the next business day as long as you provide all documents needed. Once approved, you can receive funds within 24 hours. Start with our free online application to see if you qualify with no obligation.

8. Can I Have Two Title Loans at Once?

You cannot have two title loans on the same vehicle. However, if you have two separate vehicles, you may qualify for a loan on each.

Ready to See If You Qualify?

Montana Capital Car Title Loans offers title loans for financed cars in many states. Even if you are still making payments, you may qualify if your vehicle has positive equity.

Check if you qualify with no obligation. Call us or apply online 24/7. Our team can answer your questions and help you understand your options.