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Can You Get a Title Loan on a Financed Car?
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If you’re still making payments on your car and wondering, “Can you get a title loan on a car that is not paid off?”, the answer is often yes, if you have enough equity.
Even with an existing car loan, some lenders may be willing to pay off your balance and use your car as collateral for a new title loan.
For example, if Lisa owes $5,000 on her car and the car is worth $15,000, the lender may use part of the new title loan to pay off the $5,000 balance.
Then, based on 50% of the car’s total value, she could borrow up to $7,500. After paying off the old loan, Lisa would receive the remaining $2,500 in cash.
To see how much you may qualify for, simply fill out our online loan request, quick, easy, and with no obligation!
Key Questions About Title Loans on a Financed Car
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- How It Works When the Car Isn’t Paid Off Yet?
- Is a Title Loan on a Financed Car the Same as a Title Loan?
- Are You Eligible for a Title Loan on a Financed Car? It Depends on the Lender
- Will You Have to Wait Long to Get a Title Loan on a Financed Car? Probably Not
- What Is the Maximum Title Loan Amount I Can Get?
- Should You Apply for a Title Loan on a Financed Car? Key Questions to Consider
- How Can You Select the Right Lender for a Title Loan for a Financed Car?
- Montana Capital: A Leading Provider of Title Loans for Financed Cars
How It Works When the Car Isn’t Paid Off Yet?
If you’re still making payments on your car, the title loan process will work like this:
The lender checks how much you still owe on your current auto loan.
With your approval, part of your new title loan pays off that balance and closes the existing loan.
The title loan lender becomes the new lienholder and is added to your vehicle title.
You get any remaining loan funds and keep driving your car while making payments.
Once the loan is paid off, the lender removes the lien and the title is fully returned to you.
Is a Title Loan on a Financed Car the Same as a Title Loan?
Yes, It Is!
A title loan on a financed car works just like a regular title loan. You can receive cash based on your vehicle’s equity and your ability to repay.
Even if you are still making payments on your car, you may qualify as long as you have positive equity and steady income.
These are the two main requirements for a title loan, whether your car is fully paid off or still financed.
To apply, simply complete a short form and provide some basic information, such as your ID, proof of income, and your car’s details including make, model, year, and mileage.
Once approved, you can receive your funds the same day or by the next business day. You will be required to repay the loan as agreed. Otherwise, you’ll lose your vehicle, since it is used as collateral for the loan.
How to Calculate Your Car’s Equity in Just 3 Easy Steps
Step 1: Check your car’s market value
Use tools like Kelley Blue Book, Edmunds, or NADA Guides to find out what your car is currently worth. Enter details such as make, model, year, mileage, and condition for an accurate estimate.
Step 2: Find your remaining loan balance
Check your latest loan statement or contact your lender to get the exact payoff amount you still owe on your vehicle.
Step 3: Subtract your loan balance from the car’s value
Use this simple formula:
Car Value – Loan Balance = Your Equity
Car Value: $15,000
Loan Balance: $5,000
Equity: $15,000 – $5,000 = $10,000
Example: If your car is worth $15,000 and you owe $5,000, your equity is $10,000. A positive number means you have equity. If the result is negative, your car has negative equity.
Are You Eligible for a Title Loan on a Financed Car? It Depends on the Lender
The requirements for a title loan vary based on the lender. In fact, the lender you choose usually dictates whether you can get a title loan on a financed car.
Ask a lender if it offers title loans on financed cars. If the answer is yes, learn about the lender’s title loan requirements. Then, you can submit your application and get the financing you need.
Will You Have to Wait Long to Get a Title Loan on a Financed Car? Probably Not
Lenders frequently provide a quick, seamless title loan process. Oftentimes, lenders allow car owners to apply for an auto title loan over the phone, online, or in person. This makes it easy to submit a request and receive a lending decision, often on the same day.
Many borrowers can complete the entire process and access their funds within just a few hours, making title loans a fast financing option.
What Is the Maximum Title Loan Amount I Can Get?
Your loan amount depends on several factors, including your car’s age, make, model, mileage, condition, and your income.
Most title loans range from 25% to 50% of your vehicle’s value. In some cases, we may offer up to 70% based on your eligibility.
Many lenders cap title loans at $10,000 or $20,000. We offer loans up to $50,000, depending on your car’s value, your ability to repay, and the maximum allowed by your state.
Most approved loans usually fall in the range of a few thousand dollars.
What Is the Minimum Title Loan Amount in California?
California state law doesn’t set a minimum for title loans, but most lenders offer at least $2,510 to avoid interest rate limits on smaller loans.
At Montana Capital, our minimum title loan amount is $2,600, with terms from 12 to 36 months. We’re fully licensed and regulated by the California Department of Financial Protection and Innovation (DFPI).
CA The Key Details:
| Loan Amount | Interest Rate Cap | Loan Term Regulations |
| Under $2,500 | Maximum 30% | Up to 36 months |
| $2,500 and above | No specific cap | Up to 36 months |
Should You Apply for a Title Loan on a Financed Car? Key Questions to Consider
If you’re unsure about whether to apply for a title loan on your financed car, there is no need to stress. Now, let’s take a look at five questions to consider to help you make the best possible decision.
1. Will a Title Loan Provide the Money You Need?
Title loans are great for car owners who need instant cash. If you require money right away and are willing to use the equity on your financed car as collateral, a title loan provides a terrific option.
2. Will You Be Able to Pay Back a Title Loan on a Financed Car?
Beware the consequences of failing to pay an auto title loan on a financed car. One in five borrowers has their vehicles repossessed due to their inability to pay off their auto title loan, according to research from the Consumer Financial Protection Bureau.
Conversely, if you understand your auto title loan, you can plan ahead so you can make your payments on time.
3. What Are Your Short- and Long-Term Expenses?
Analyze your expenses. Next, you can determine if an auto title loan on your financed car can help you cover your short-term costs. You can also assess how a title loan will impact your long-term expenses.
You can also use our title loan calculator to view your estimated repayment Title loan terms include the loan amount, interest rate, fees, repayment schedule, and what happens if you can’t repay.
4. What Are the Terms of a Title Loan?
Title loan terms include the loan amount, interest rate, fees, repayment schedule, and what happens if you can’t repay.
Make sure all of this is clearly listed in your agreement. If anything is unclear, ask your lender to explain.
By law, under the Truth in Lending Act (TILA), lenders must show all loan costs upfront so you can make a fully informed choice.
5. Does a Lender Meet Your Expectations?
Don’t settle for an inferior lender. Instead, choose a lender that employs friendly, knowledgeable title loan officers. This lender should also help you feel comfortable with all aspects of a title loan for your financed car.
How Can You Select the Right Lender for a Title Loan for a Financed Car?
Here’s What You Need to Know
Thousands of lenders offer auto title loans on financed cars. However, the right lender for a title loan for your financed car will likely offer the following perks:
1. Convenient Locations
The right lender makes it simple for you to reach out with auto title loan concerns and questions. It offers dozens of locations, along with customer support via phone and email.
2. Flexible Payment Options
The right lender provides multiple auto title loan payment options. It collaborates with car owners, and in doing so, helps you find an auto title loan payment plan that falls in line with your finances.
3. No Hidden Fees
The right lender is upfront with car owners. It has no hidden fees or prepayment penalties. It will also ensure a car owner fully understands all auto title loan terms.
4. Straightforward Application Process
The right lender offers an easy-to-follow title loan application process. It even provides guidance to help car owners complete this process.
5. Fast Loan Decision
The right lender ensures a car owner can receive an instant decision on a title loan on a financed car. If a title loan application is approved, this lender immediately provides financing.
Montana Capital: A Leading Provider of Title Loans for Financed Cars
If you want a title loan for your financed car, Montana Capital Car Title Loans can help. To date, we have helped thousands of customers secure auto title loans.
We teams up with third-party lenders across the US to provide exceptional title loan support.
To find out more about how we can help you secure a title loan for your financed car, please contact us today
Serving You Across The US
Montana Capital Car Title Loans serves applicants from various states, including Alabama, Arizona, Illinois, New Mexico, Texas, Oklahoma, and many more!
By connecting with a trusted lender, we help people apply for a title loan safely and quickly. Fill out your loan request now and let our support team guide you.