Unfortunately, you cannot get an auto title loan with a bill of sale. You must have a title in your name to qualify for a title loan. However, having the bill of sale in your name is the first step to acquiring a car title in your name and securing the car title loan you need to satisfy your financial emergency.

What is a Title Loan?

Car title loans are loans against the vehicle title. They are secured loans that require you to own the vehicle to borrow against its equity. You must own the vehicle without any liens, which must be worth enough to borrow against. You can typically borrow 20% – 70% of the vehicle’s value, depending on the lender.

When you borrow a title loan, you get cash in exchange for the vehicle’s title. The title loan lender puts a lien on the title, and it remains there until you pay the loan in full. You make monthly payments to the title loan, and once you pay it in full, you receive the lien-free back.

What is a Bill of Sale?

A bill of sale is proof of vehicle purchase, and it transfers ownership. It’s the first step in the transfer process and is required in most states to transfer the vehicle title. A bill of sale may be enough to prove the transfer of ownership and the lack of the seller’s liability in the vehicle. This is important should the buyer get into an accident or cause other legal issues with the vehicle.

However, the bill of sale is not enough to get a title loan. You must take that extra step and have the title transferred to your name.

How to Get a Bill of Sale

If you need a bill of sale but don’t have one, check with your state’s requirements. Some states require the use of a specific form, and others allow you to draft your own using a generic bill of sale form

You’ll need the buyer’s and seller’s information, including name and address, the vehicle description, how the car exchanged hands (sale or gift), odometer disclosure, and signatures from both the buyer and seller.

Steps to Use the Bill of Sale to Get the Title in Your Name

Here are the quick steps to use the bill of sale to get the title in your name.

  1. Seller signs back of car title: When the seller signs the ‘Signature of Seller’ line on the title, it relinquishes their vehicle ownership.
  2. Gather necessary documents: You’ll need the signed title, government-issued ID (driver’s license works best), and completed title transfer application form from your local DMV.
  3. Apply for title transfer: Check your local DMV’s requirements; some allow you to apply for title transfer online, and others require you to visit the DMV in person.
  4. Pay the title transfer fee: Each state charges a different fee for title transfer, up to several hundred dollars.

Dealing with a Lost or Stolen Car Title

You can request a duplicate title from your state’s DMV if you don’t have the title because it was lost or stolen. Most states have a lost title application on their website. If not, the standard title transfer application usually has a box for duplicate titles.

Getting a duplicate title immediately is important if you think it was stolen. When you let the state know the title was stolen, they will void the original title and issue you a new one.

How Can You Get a Title Signed Over for a Title Loan?

If you didn’t get a bill of sale because you received the car as a gift or an inheritance, most states require that you have a bill of sale created. Your state’s DMV website likely has a bill of form sale you can download. Complete the necessary information and have the person who gifted you the vehicle sign it.

Once you complete the bill of sale, you can use the steps above to get the title in your name. Not only is this important for title loans, but if you want to sell the vehicle in the future, your name must appear on the title.

Steps to Qualify for a Car Title Loan After the Title Transfer Process

After getting the title in your name, you can apply for a title loan using these steps.

  1. Gather the necessary documents
    To apply for a car title loan, you’ll need the following:
    • Government-issued ID
    • Proof of income (employment or otherwise)
    • Proof of residence
    • Proof of vehicle ownership with a lien-free title
  2. Apply for pre-approval
    Complete a title loan application to get pre-approved. It takes only a few minutes to complete, and you’ll know instantly how much you can borrow if you’re eligible.
  3. Evaluate your options
    Review your pre-approval and options for loan amounts. This includes the repayment terms to ensure you choose the loan that suits your needs.
  4. Upload documents when ready to accept the loan
    If you accept the loan terms, upload the necessary documents to prove you qualify for the loan.
  5. Provide pictures of your vehicle
    You must provide clear pictures of your vehicle’s interior and exterior. You must also include pictures of the VIN and odometer.
  6. Send in your vehicle title
    The final step is to send your vehicle title using the method the title loan lender requests to finalize the loan.


How Long Does Getting a Title Loan with a Bill of Sale Take?

The title loan process can be quick. You may get your funds in as little as one business day, or sometimes the same day if you have final approval before 2 PM local time.

However, you must first go through the title transfer process since you can’t get a title loan with a bill of sale. The timeline for this varies by state. Check with your local DMV to determine how long before you’ll receive the title in your name.

How Much Can You Borrow with a Title Loan?

Title loan lenders have different loan amount limits, but you’ll find opportunities to borrow $500 to $50,000. The amount title loan lenders will allow you to borrow depends on your qualifying factors, including if you have a clear title. No matter the lender, you must prove you can afford to repay the loan.

Where to Get a Title Loan with a Bill of Sale?

Title loan lenders don’t offer title loans with a bill of sale. To get loan approval, you’ll need a title in your name. Once your name is on the title, you can apply for a title loan on our website no obligations.

Final Thoughts

While you cannot get a title loan with a bill of sale, getting the title in your name is easy if you have a proper bill of sale. Even if you aren’t considering applying for a car title loan, transferring the title to your name immediately protects everyone involved.

You can apply for auto title loans with the title in your name if you have a financial emergency. Just remember, title loans work like other secured loans. You must make monthly payments with interest on the funds you borrow.

If you need help getting an auto title loan, contact a title loan agent at Montana Capital Car Title Loans to get help with your car title loan needs.

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.