How to Get Out of a Title Loan Without Losing the Car

 

There’s no getting around the fact that people can lose ownership of their vehicle because of a title loan repossession.  Losing your vehicle because you can’t make the monthly title loan payments is one reason why you need to be proactive to avoid this type of situation  Apart from inconveniences to your schedules and financial history, repossession can impact your credit score and interest rates with any future loans. This article discusses various ways to get out of a title loan online!

 

Tips to Get out of a Car Title Loan Without Giving up your Vehicle

The easiest solution to get out of an auto title loan is to be proactive and pay off the loan amount. You can do this all at once with a lump sum payment or simply make all your required monthly payments on time. Prioritize saving as much money as you can to pay down the amount borrowed.  If you have some extra cash flow each pay period, consider paying more than required. Let’s break down the various options you have to get out of your lending obligation without losing the car.

 

Contact another lender and consider a title loan buyout to get out of your loan

Although this may not be an excellent idea, going for another title loan could be a viable option if you desperately need to keep your vehicle but haveGet out of your future loan payments no other available option to repay the loan. A title loan buyout allows you to move from one lender to another with a fresh start and should give you enough time to reorganize your finances and accumulate enough funds to make timely repayments. Another option is to consider a personal loan, or low interest installment loan, or even a vehicle registration loan that has better rates and repayment terms than your initial title loan.

 

Sell the vehicle to legally get out of a title loan

If taking another online title loan is not possible, selling your car could be a perfect alternative. You can use the amount from the sale to pay down the debt and start afresh. Opting for this option allows you to save cash for the entire loan duration. However, if your vehicle is the only mode of transportation, this option ultimately won’t work. This option also won’t work if you’re trying to sell a vehicle that’s attached to a pink slip used for this current title loan. You need to sell a car that’s free and clear.

 

Get a cash advance or another loan if you’re stuck making title loan payments

Most title loans are a few thousand dollars in the loan amount. If you have a credit card with an adequate available credit limit, you can repay the car title loan with a cash advance from your credit. Unfortunately, most credit cards come with a high interest rate charged on cash advanced. They also have a revolving loan term that makes it quite challenging to pay off the debt once and for all. However, if you don’t have other options, using a credit card cash advance could be the only way to save your car from being repossessed.

 

Apply to refinance your future title loan payments

Have you ever considered refinancing your current title loan?  It doesn’t matter if you refi with the current lender or find a new company, because once you’re approved you should get new payoff terms with a lower monthly payment. It’s much easier to refinance a title loan if you’re still current on the payments so work with your lender to avoid a default.

If you have equity on your house, you can apply for a refinance loan or a home equity loan and use the cashout amount to settle your title loan. A home refinance loan typically comes with several advantages: it has a lower interest rate than most title loans online, a longer repayment term, and a substantial amount of money than credit card cash. However, you will need an excellent credit score and equity established on your home to qualify for this loan. The loan can also take a more extended period of 30 days or more to get approved. However, this is a viable idea, especially if you need to quickly get out of your title loan.

 

Get out of future loan payments by agreeing to refinance.

Borrow money from friends or family to get out of your title loan without losing your car

To most people, asking a friend or family member for financial help is the last thing in their mind. Although it can be embarrassing and humbling, asking for help from close friends and family members is a better option than losing your car. Remember, everyone falls into hard times at some point, and you should not shy off from seeking direct help from your family. When considering this option, the rule of thumb is to set up strict repayment terms and offer to pay interest on the loan.

 

Negotiate new payoff terms for your current title loan

If you are in a situation where you feel you can’t afford to pay off the loan amount, contact the lender immediately and ask for new repayment terms. Most lenders would rather have you make new payments under new terms than take away your car away. A renegotiation may include asking the lender for lower interest rates, a longer loan term, lower monthly payment, or a combination of all the options depending on your financial situation. Once you agree on the terms, ensure you have a written financial agreement signed by both parties.

 

Default on the title loan & negotiate with your lender to avoid losing a vehicle

Defaulting your title loan is also an option here. However, it comes with higher costs, including the risk of losing your car and a negative credit score. Even in a situation where the lender takes back your car as compensation for the loan, you may still end up with garnished wages if the car’s value cannot pay for the remaining portion of the loan. However, this could be an option if you have another vehicle.

 

Reach out to your lender to get rid of your title loan so you can keep driving your car

For the 2 million Americans who borrow against their vehicles annually, car title loans could be the only viable source of fast cash to help them out of an urgent financial need. However, many borrowers fail to pay the money back to the lender leading to the risk of vehicle repossession and damaged credit history. If you have defaulted or are at risk of defaulting on a car title loan, keep in mind the lenders always make good on their auto and title loan repossession warnings.

It is crucial that you carefully explore all options available to determine the best course of action. This starts with you reaching out to your lender’s customer service team to see what they can do to help. The last thing anyone wants is for you to lose the vehicle to a repossession. Your lender will have to pay money to take your car and stage an auction and they’d rather you continue to make monthly payments! If you have any questions or need help accessing a title loan, contact Highway Title Loans today!

 

Contact your customer service rep at the title company to negotiate a new payoff amount.

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