If you're looking to apply for a title loan, but either don't have your physical car title or your car title has an existing lien on it (i.e., isn't free and clear), don't fret — you can still get the title loan you need.
The name "title loan" seemingly suggests that you must have your car's title to obtain the loan. However, contrary to popular belief, some title loan lenders do in fact offer loans on financed vehicles. And, if you've misplaced your car title, getting a replacement is a simple process. Let's go over each of your options and how they work. ⚙️
If you're still financing your vehicle and would like to apply for a title loan, you have two options with the first being a second lien-title loan.
With a second lien title loan, a title loan lender extends you a title loan based on the equity you have in your financed vehicle (the amount you've paid-off). Though, in order for a title loan lender to do this, your auto loan lender (your first lien-holder) must first grant the title loan lender (the second lien-holder) permission to place a second lien on your title.
But, be aware, finding a lender who does second lien title loans and getting your auto loan lender to agree to a second lien can be challenging as the process is complex and isn't terribly advantageous for either party.
If you don't have enough equity in your vehicle or your auto loan and title loan lender are not okay with a second lien, your second option for getting a title loan with a car you're still making payments on is finding a lender who offers title loan buyouts.
With a title loan buyout, a lender pays off your existing auto loan (removing your auto loan lender's lien on your vehicle) and refinances your loan with them under new terms and, typically, MUCH higher finance charges.
A title loan buyout is a solution to getting you qualified for the title loan you need, but it isn't the most cost-effective option. For a more affordable loan option, I recommend you check out personal installment loans which have more favorable rates and flexible repayment terms.
Lastly, if your car title has been misplaced or destroyed, getting a replacement title is easy.
For a fee, you can request a duplicate title from your local DMV in-person, by mail, or (in some states) online. You can expect to pay between $5 to $100 for a duplicate title, and will generally have to provide a valid ID, proof of ownership, the completed title replacement form, and your VIN. Check with your local DMV for their specific requirements for a replacement title.
Again, while there exists many creative ways to qualify for a title loan, be sure that the method you choose is a financially wise one and be sure to consider all of your loan options before committing to a title loan.
Cheers to borrowing responsibly, my friend! 🍻