Can a title loan company take your car?

Quick Answer Yes, a title loan company can take your car if you don't repay your loan. With a title loan, the car's title is used as collateral, giving the lender the right to repossess your car if you fail to repay. However, some states require a court order before repossession.

Samuel Fisher profile picture
Samuel Fisher ā€¢ Answer updated on Jun 14, 2023

Fact checked by Dwayne Dumesle

Yes, unfortunately, failure to repay your title loan on time can result in the repossession of your car.

Typically, a title loan company can begin the repo process in as little as 10 days after the late payment. In some cases, the lender can take your car as soon as the payment is missed. In other cases, the lender must secure a court order and wait 10 days after the missed payment. It all depends where you live.[1]

How do you know for sure? Ideally, you need to make sure you ask these questions before signing your agreement. If you have already signed, well, go read the agreement (yes, go dig that up from that pile of papers on the carpet).

Learn: Can I get a second title loan?

If you're close to repossession and still got some fight left in you, there are still ways for you to keep your car:

  • Refinance your title loan: Refinancing a title loan is one of the common ways people will avoid repossession. Connect with another lender, try to get a better deal on interest rates, and then move the lien and title loan over to them. šŸš—

  • Talk to the lender: After you re-read your contract religiously, you usually will find a few talking points in the various clauses of the title loan contract. If you get a sense the lender is willing to work with you instead of just going nuclear, ask them what they can offer you.

Learn: Can you be arrested for not paying a title loan?

As you can see, repossession is a real risk. However, a prepared borrower can avoid repossession procedures altogether. The best thing you can do is be proactive and get ahead of any disasters!


  1. Repossession Laws by State ā†©ļøŽ

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