Can you get a title loan on a broken car?

Quick Answer Yes, some lenders will extend you a title loan on a broken car, but you have to find a willing lender. Because a vehicle's condition directly affects its value, most lenders will require your car to be in working condition to accept it as collateral.

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Tobi Opeyemi Amure Answer updated on Jun 26, 2023

Fact checked by Doreen Dumesle

Yes, it's possible to get a title loan on a broken car.

But, the trick is locating a lender that will willingly accept the vehicle as collateral in its current condition. This is because your car’s condition has everything to do with its value and the lender’s confidence in being able to recoup their losses in the case that you fail to repay your loan.

Learn: Where can I get a title loan?

When it comes to getting title loans, one thing is for certain: your car needs to be valuable.

Generally, lenders prefer that your car be in working condition before they can accept it as collateral because it is easier to sell a car in working condition to recover their money than it is with a faulty one — which is what they have the right to do if you default on your loan (be sure to read that loan agreement carefully 🧐📃).

Learn: What happens if you don't pay a title loan back?

But, let’s say your car hasn’t hit the road for a while due to mechanical issues — does this mean you can’t secure a car title loan? Not necessarily. Some lenders may approve you for a title loan regardless of your car's condition. The only difficulty is finding a lender who will.

Also, keep in mind that, broken cars generally have lower values. So, the loan offer you'll receive will likely be lower than what you could borrow if your car were in working condition.

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

If you decide to try your hand at getting a title loan with a broken car, be sure to shop around for multiple quotes and understand what your car is worth.

If you're having trouble getting approved, try exploring other bad credit loans that don't require your car as collateral, such as installment loans.

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