Before someone applies for a car title loan they often ask, “how long it will take to pay off my title loan”? You need to understand, that most applicants have never taken out a cash advance or title loan. They either saw an advertisement online or simply searched for a specific lending term. The customer was likely asked how much they need and fill out the application. Only after they’ve been approved for a loan will they be presented with different payoff terms. Some companies will have a set payoff term and set rate that is not negotiable. Set payment terms are becoming less common over the past few years. As more direct lenders open up shop online, we see more transparency from companies when they break down the rates and terms for a vehicle title loan.
Can I Pay Off A Title Loan Early
To understand how long a consumer has to pay off a title loan, the answer is never easy or definite. With most lenders, you often have set financial terms across the board with each loan offer. That’s not the case with a secured lending service that provides equity financing. Loan offers and financing rates are often dynamic and determined by your financial situation. As you use the vehicle’s pink slip as collateral the amounts you borrow can range from a few hundred dollars to tens of thousands! You will see huge differences in payoff times with the difference in loan amounts.
Another factor to consider is that some states have specific regulations and limits on the payoff time you can expect with a car title loan. Take Delaware as an example. State regulations in Delaware set a term limit at 180 days or 6 months. This payoff is not allowed to include rollovers. Other states like Idaho Illinois, and Georgia allow car title loans, but they cap the payoff time at 30 days. One month may seem like a short amount of time, but those states also allow extensions or rollovers in certain situations.
Pay off A Car Title Loan Quickly By Negotiating The Payments
If we were going to put a set time on how long you have to pay off an auto title loan we would put it as a matter of months instead of weeks or years. Because each state has different restrictions and each loan product is tailored to fit your situation it’s hard to come up with an exact time period. Some larger equity lenders will go with a payoff estimate of 12 – 36 months. At Highway, we are proud to offer title loans online, we don’t give you or set any specific length or term for a payoff, and it’s not an issue if you want to pay off a title loan early. It all comes down to the vehicle’s title loan value and other qualifying factors like employment and credit issues. Another positive development with car title loan payoff times is that you are not necessarily set in with your payment period.
Are There Any Companies That Pay Off Title Loans Early
Most reputable secured loan companies will allow you to pay off the full amount early. By making early payments you can avoid significant finance charges and get out from under a car title loan. There are also 3rd party lenders that will either refinance your current title loan or look to do a title loan buyout where they work with your current lender to purchase the rights to your lending contract. These scenarios are rare because most people looking for a title loan payoff or buyout are likely already behind on their payments or they may have a low value or rebuilt car title that further diminishes the loan value. That doesn’t mean you can’t find companies that pay off title loans early, but the financing options may be limited.
Janet Patterson is VP of Marketing Communications for Highway Title Loans and the feature editor of its Lending Blog. Janet has worked in the financial service industry for over a decade, with 7 years of experience in the car title loan industry. She previously managed a customer service team that helped and advised consumers on all their lending related questions and concerns.