Can I Get A Title Loan On A Financed Car

Auto title loans allow you to borrow money against the equity value of your car. Based on that, you may think getting a title loan on a financed car is impossible, as you don't technically own the vehicle. However, there are some scenarios where you can get a title loan on a financed car if your lender is willing to wait on the title transfer or if they're open to paying off your original lender. A title loan on a financed car works similarly to a typical title loan, as you still need to qualify using a vehicle as collateral. You can be eligible for a title loan if you have enough equity in your car. The first step to getting a title loan on a financed car is to apply with a lender such as Express Car Title Loans. Ask them what types of vehicles they accept and if they offer title loans on financed cars or second lien title loans where they're not the primary lienholder. These loans are not necessarily common in 2025, as most title loan companies prefer to be the sole lienholder of a vehicle. But it doesn't hurt to apply for a loan on a financed car, especially if you have significant equity in the vehicle.  

Can I Use My Car as Collateral for a Loan?

Yes, you can, in all senses, use your car for a loan; there are cases where a lender offers a title loan even if the vehicle is not fully paid off! When you take out a secured loan, you offer something valuable as a guarantee to the lender—in this case, it will be your car. If you fail to pay the loan, the lender, a person, the bank, or a title loan company has all the right to seize the collateral to recover the money you owe. However, remember that the amount you can borrow against your car title depends on its value. Lenders typically assess the car's market value by checking its age, condition, and mileage. The more your car is worth, the more you can borrow.  

Car Title Loans If I Still Owe My Original Lender

Using your car as collateral for a loan is possible even if you still owe money, but it can be a bit more complicated. When you owe money on your car, the lender holds a lien. If you want to use your car as collateral for another loan, you must pay off the existing loan first! Logistically this makes it difficult to get a title loan if you don't have the actual pink slip for your vehicle. Sometimes, a lender may allow you to take out a loan using your car as collateral while you still owe money, but this often depends on how much equity you have in the car. The difference between your car’s value and the amount you still owe on it is its actual equity. For example, if your car is worth $25,000 and you still owe $5,000, you have $20,000 in equity. Some lenders can allow you to borrow against this equity. One thing to note is that they definitely won't offer a title loan without an inspection or if you have other factors that make it difficult to verify the vehicle's value. It's already challenging to get approved for a title loan if you still owe your original lender, and if you find a company willing to work with you, you'll need to check off all the standard underwriting requirements.    

Title Loans On Financed Cars With Express Car Title Loans

Getting a title loan on a financed car is possible, but it’s generally not advisable if you have other ways to borrow money. Title loans are short-term, high-interest loans using your car’s title as collateral. Because these loans come with very high interest rates and the risk of losing your vehicle to repossession, they can be risky, especially if you’re already paying off another loan on the exact vehicle. We recommend understanding the risks when considering a title loan on a financed car. Since you don’t fully own the car yet, the title lender will likely require permission from your original auto lender. This process can be tricky, as the original lender may not want to risk losing their collateral to another lender. In many cases, they might refuse or impose strict conditions. In addition to a more complicated underwriting process, you also need to know the interest rates will be higher with title loans on a financed car. Most standard title loans have interest rates of around 45%. For title loans on a vehicle that's not completely paid off, you can expect an APR approaching 100%!  

Is A Car Title Loan On A Financed Car Right For Me?

Now, let’s come to the important part– would a title loan on a financed car be the right choice if you need cash but can't get approved for a personal loan? For some, yes! For everyone? Not so much, especially if you have good credit and can easily qualify for an unsecured loan! Before deciding whether a car title loan is right for you, weigh the pros and cons. Title loans offer easy access to cash, which can be helpful in emergencies, but they usually have very high interest rates and come with significant risks. Our suggestion in this situation is that you consider your financial situation very carefully before deciding to take out a title loan if you have yet to pay off your vehicle. If you’re struggling with debt or have trouble making ends meet, a title loan can worsen your problems. That is why looking for alternative options such as personal loans, borrowing from friends or family, or even negotiating with creditors for better terms would be better! However, if, against all odds, you still decide to take out a title loan, make sure you understand the terms and conditions before you sign off on the loan. Remember how much the loan will cost you, and have a clear plan for how to repay it. Lastly, remember that losing your car could have far-reaching consequences, and you can get sued if you attempt to cash out equity from a vehicle you don't own! Call Express Car Title Loans at 888-864-7180 to see if your financed car can qualify for a title loan!