Can I get a title loan while still making payments?

Quick Answer Yes, you can get a title loan while still making payments if you have enough equity in your vehicle and your auto loan lender agrees to a second lien. Though, this process is more complex when compared to the process of getting a title loan on a vehicle that is paid-off.

Kevin Johnson profile picture
Kevin Johnson Answer updated on Jun 26, 2023

Fact checked by Dwayne Dumesle

Yes, you might be able to get a title loan even if you haven't paid off your car.

But, this process is a bit trickier than getting a title loan on a vehicle that you own. That's because there are a few extra things that come into play when trying to get a title loan using a car that you haven't paid off yet.

Learn: Where can I get a title loan?

First, you need to have enough equity in your vehicle. Equity is the amount of money your car is worth, minus the amount you still owe on your loan. For example, if your car is worth $5,000 but you still owe $4,000 on the loan, you have $1,000 in equity (5,000 - 4,000 = 1,000).[1]

If you have enough equity, a title loan lender may approve you for a title loan based on that amount. However, because cars lose value over time, it's not unusual for you to owe more than your car is worth. This is especially true when you buy new cars, which can lose over half their value in just 5 years.[2]

Second, your auto loan lender has to agree to you taking out a second lien on your vehicle. Title loan lenders use your car title as collateral for the loan instead of doing a credit check. This means they could take your car if you don't pay off your loan. Some auto lenders consider this too risky, and won't let you take out a title loan.

Learn: Can you get a title loan on a leased car?

On the other hand, when your car is already paid off, you don't have to worry about equity or other lenders and you can easily secure a cash title loan based on how much your car is worth without jumping through any extra hoops.

Long story short: it's a lot easier to get a title loan if you've paid off your car, and you'll probably be able to get more money for your loan this way!

Learn: How much can I get for a title loan?

Though, whether your car is paid off or not, there's always the risk of losing your vehicle or damaging your credit if you don't keep up with your repayment. So, before you take out a title loan, be sure that you can afford both your car payment and your monthly obligation to your title loan lender. 🤔💸


  1. What Is An Auto Equity Loan? ↩︎

  2. What Is Car Depreciation? ↩︎

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