We receive a lot of questions from interested applicants who visit our site. Some of them revolve around what fees to expect with a car title loan and how long it’s going to take to pay off the full amount. By far the most common question we receive however is whether or not they’ll need to hand over their vehicle during the life of the loan. Keep in mind, we’re not talking about the vehicle pink slip, we’re talking about the actual car. Most people know they need to transfer and hand over the vehicle pink slip or car title before they get the loan. But some are still confused about whether they can keep driving the car. We’re hear to tell you that you should have no problem keeping the vehicle during the complete loan term.
If you apply with a company that wants to hold your vehicle as collateral you should call them out on that and ask them why. If they say it’s normal protocol then you are entitled to be concerned. We can tell you that nearly every large title loan service in the US will be fine with only the vehicle pink slip as collateral. We know of some services who may have specific situations where they would want to keep your vehicle. These may include some pawnshops that treat your car much as an item you pawned in their store. Others will claim to need to hold the car if it’s an expensive or high dollar loan but these situations are unique. In any situation you need to evaluate different options if you apply for a car title loan and the company says they need to hold your vehicle as collateral. Spend a few minutes online and apply with another title loan company. It’s like you will come across a more reputable company that has no problem giving you a loan in exchange for the car’s title.
We can think of many reasons why it’s not a good idea for a title loan company to hold your car as collateral. The biggest reason is that you have no way to get to work or handle your day to day errands. Who wants to give a title loan to someone who count’s on their car to get back and forth to work. It’s likely that person would go on to lose their job if they take out an online loan but have to give up the daily use of the car. Another risk you run if you hand over the car is what happens if the company goes bankrupt or you car disappears? This wouldn’t happen if you’re dealing with a large nationwide title loan service. But none of those larger companies would ask for the car as collateral in the first place. Save yourself the headache of worrying about the status of your car. Don’t stress out if a lender asks you to hand over the vehicle as collateral. Simply thank them for giving you a quote and contact one of the other many different online title loan companies. You’re bound to find a lender that will be happy with your pink slip as collateral!