Can You Get a Title Loan on a Financed Car?

If you’re trying to finance a car, you may be wondering if you can get a title loan on it. Title loans allow you to use your car as collateral in exchange for money. If you’re wondering, “Can you get a title loan on a financed car?” then let Cheap Title Loans, an expert on auto title loans in Phoenix, explain everything you need to know about getting a title loan for financed vehicles.

Title Loan Options for Financed Cars

Can you get a title loan on a financed car? The answer is yes, although the process is much different than if you owned the car. Normally, when you get a title loan, the lender is responsible for holding on to the car as collateral until you pay the loan. This ensures the car is secure if you don’t make loan payments.

Getting a title loan with a car loan means the lender will hold on to not only the car’s title but also the lienholder’s title. Securing a title loan with an existing auto loan can be tricky since it will fall onto the task of the lender to secure the loan between you and the lienholder.

Is It Difficult To Get a Title Loan on a Financed Car?

Title loan eligibility for financed automobiles depends on the lender and their requirements. If you fulfill those requirements, you can submit an application for the finances you need. With extra finances, you can perform car maintenance or at least prepare for the repayments ahead.

Typically, getting a loan against financed vehicle titles doesn’t take very long. You may have the option to undertake the loan process on the phone, in person via an office, or entirely online. Even though the process is a bit more intricate than your standard title loan, most lenders usually make the process as seamless as possible so that car owners won’t have to wait long for their financing.

How To Find a Lender That’s Right for You

Can you get a title loan on a financed car? Yes, but you should look out for a few things when looking for a lender to ensure your own best interest:

Payment Flexibility

If you’re considering a loan, be sure that the lender has a payment schedule that you agree with. A good lender is flexible for your situation, having multiple auto title loan payment options available. Flexible payment options can help you handle payments on time, helping you proceed without issue.

Contact Convenience

Location and communication are crucial for a loan. A good lender will have multiple ways for you to reach out with questions or concerns. Having multiple physical locations where you can schedule a meeting is a good sign of trust for your lender, in addition to a reliable communication line for payments and customer support.

Transparent Application Process

The application process should be easy to understand. Guidance and clearly stated principles can help you fully grasp what your title loan on a financed car will be like so that you can appropriately make payments. An application process that is highly involved and informative can help you make the best decision with your finances.

Zero Hidden Fees

Just as a transparent application process speaks well to the lender, a lack of hidden fees exudes trust as well. A good lender has no prepayment penalties or hidden fees. The more understandable your transaction, the better it will be for both parties in the long term.

What To Look Out for Before Taking Out a Title Loan

If you’re considering a title loan, you should consider some of the following aspects of your agreement:

• Your credit score: While a credit check is unnecessary, defaulting on the loan can decrease your credit score.
• Interest rates: Title loans such as these typically come with high interest rates.
• Likelihood of repossession: If you default on your loan, the lender will have the right to repossess the car.

Work With Cheap Title Loans for a Hassle-Free Experience

Now that you know the answer to the question, “Can you get a title loan on a financed car?” we can help you the rest of the way. If you’re considering getting a title loan for a car, why not work with Cheap Title Loans for a smooth experience?

We offer some of the lowest available interest for your loans, whether on used cars, new ones, or financed cars. To start working with us, call 520-200-5626 for more information.