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Friday, July 19, 2024

Can You Sell a Car That Isn’t Paid Off?

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Looking to Sell a Car with a Title Loan on it? 

There are many reasons why you might decide to sell your car. Perhaps you’re not using it very often, or gas prices are too unpredictable, and you’d rather stick with public transportation. If you currently have a title loan on your vehicle, you may wonder if you’re allowed to sell your car under these circumstances.

The short is that yes, you can sell your car with a title loan on it, but there are requirements involved, and you must pay the loan off before the vehicle can officially sell. 

With a title loan agreement, you use your car’s title as collateral in exchange for funding from a lender. After approval, the lender places a lien on the vehicle title and removes it when the money is repaid. The entire process works similarly to selling a car that you bought with a financed auto loan. In a private sale, you have to pay off the loan before you can transfer the title.

This is why title loans can be an option for people with a bad credit history– your credit score will still be considered during the approval process, but lenders care more about how much your car is worth and if you can pay the money back.

While you can’t technically give your vehicle away before the title loan is repaid, there are ways you can begin selling your car with a title loan on it! Read on and check out this website for more info.

Use the Sale Proceeds to Pay the Title Loan Off

Maybe you want to sell your car to help pay off your current title loan. While this is possible, it requires special circumstances and navigating through the process correctly to ensure you’re not breaking any laws and that you’ll be able to access the title in order to transfer it to the new owner. 

The biggest hurdle with this option is finding a buyer with enough trust in you that they will eventually receive the property. That’s because they would need to give the money upfront, allowing you to pay the title loan off, and then wait while the entire process completes before receiving the car. 

The next step after paying the loan off is filing paperwork through the Department of Motor Vehicles to prove that the financing was paid and that the lien can be removed from the title. This will ensure that the vehicle is returned to your name, but it can take a little time.

Finally, you can transfer the vehicle title over to the buyer and complete the sale of your car. Finding a buyer who trusts you and is patient is essential during this type of agreement! Someone you don’t know very well may think you’re trying to scam them and run off with their money. 

Pay off the Remainder of the Loan Before Selling the Car

If you can’t find a buyer who trusts you enough, is concerned about the waiting period, or doesn’t want to give money upfront, there is a second option. You could secure a deal with them, ensuring they pay for the vehicle directly after the title loan is paid off.

Perhaps you were hoping to use money from the car sale to plump up your bank account, and you’re worried about using all you have left to pay the title loan off. With this agreement in place, you don’t have to worry about not having money for very long. 

Once the title loan is paid, you can transfer the title to the new owner and complete the sale.

Inquiring About a Title Loan When You Need Cash Fast

A title loan could be a financing option for people who need to access money quickly. Selling your car or another piece of property can be an excellent way to get cash, but you will lose a valuable asset. 

If you currently have a title loan agreement but are worried about paying it off, consider refinancing it! You could potentially work out a new deal that allows you a longer amount of time to make your payments or more competitive interest rates, or even possibly, a reduction in the principal amount that you owe, although this depends on your lender. 

If you want to sell a vehicle with a title loan, you must make sure you can pay the funding off before transferring the title to a new owner. You can do that two ways– either by receiving the sale money upfront or directly after paying back the loan.

Don’t let a stressful financial situation overwhelm you! There are options available for people who need funding for unexpected expenses. Get started today by filling out this inquiry form or calling to speak with a title loan agent. 

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