Can you get a title loan on a leased car?

Quick Answer Yes, technically, it's possible to get a title loan on a leased car — but it's not recommended. Some lenders may offer to buy out your lease and tack that payoff amount onto your title loan, but this is not common and can be risky. It's better to explore other loans for bad credit.

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Samuel Fisher Answer updated on Jun 14, 2023

Fact checked by Dwayne Dumesle

Sure, you might be able to secure a loan on a leased vehicle, but this is unlikely.

Remember that you technically don't own the vehicle — the leasing company does. And, a title loan lender can't put a lien on a title that is not in your possession.[1]

Learn: Can you get a title loan with the registration?

Now, I said "technically," so here is how it would work, but I don't recommend you try this.

To secure a title loan on a leased vehicle:

  1. The new lender will buyout your lease by paying the remaining balance
  2. End your lease
  3. Receive the title now in your name
  4. And, finally, place a lien on the title.

As you can see, this can be a headache for a lender who also has plenty of clients with clean titles ringing their phones.

Learn: Can I get a title loan without the car?

Plus, you're going to owe an astronomical amount after all that! A title loan interest rate can be as high as 300% — you're going to add the amount it cost to get out of your lease at that interest rate! It is bonkers! 🤪 Just don't do it!

Plus, this is so unorthodox, most title loan lenders won't even go for it. Instead, you should let your leased car lie and research installment loans for bad credit.

An installment loan is a much better option if you need quick cash. It will require a credit check but the interest rates are much more tolerable. They offer lower risk and longer repayment terms.

If I were in your shoes, I would consider title loans out of reach and focus on a legitimate installment loan lender.

Good luck!

  1. Will I Get a Title When I Lease a Car? ↩︎

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