Can A Title Loan Company Repo My Car And How Can I Stop Them


A car title loan allows you to access cash, which you can get by using your title as collateral. These types of loans are widely used today, and the benefits are clear as day for someone who otherwise won’t qualify for a typical unsecured loan.

Taking out a title loan is easier than applying for conventional installment loans because no credit checks are involved. However, borrowers should be aware that these “no credit check” title loans usually have considerable risk, resulting in losing your car to a repossession.


How To Prevent A Title Loan Repossession From Happening

Even though equity lending policies vary in each state, if you miss one or even two payments, your vehicle will likely be repossessed by a same day title loan company. Lenders will typically repossess your car after you default on a title loan if it’s licensed (has current tags) and is registered in your state. Remember that secured lenders or finance companies do not want to take your vehicle immediately!

Any legitimate title loan company will work with you to devise an alternative payment plan or even a loan reduction if you can get current on the payments again. If your title lender is willing to work with you, contact customer service to figure things out. However, if they refuse, don’t be afraid to shop around estimates on a refinance or lender buyout that might offer better terms.

In some cases, secured lenders will even let you bring in another cosigner to help erase any chance of repossession. Other title lenders may allow you to refinance your title loan so that you only owe part of the amount due each month instead of the entire balance. This option doesn’t always appear, but it’s worth asking about!


Do whatever you can to avoid a title loan repossession!


What To Do If A Title Loan Company Repossesses My Vehicle

If you find yourself in a situation where the lender takes your vehicle, the first step is to take a deep breath. You have time on your send, and the lender will not do anything drastic like selling your vehicle at auction for weeks. During that time, it’s in your best interest to get the title loan under control and avoid title loan repossession.

Work with the lender to find a solution where you can pay the title car title loan in full or bring in another cosigner who will take on your payments. A delayed sale date may give you enough time to find another refinance offer or apply for alternative financing methods like an unsecured line of credit.

Another option is to plead with your lender and explain to them how dire your situation is! We’ve heard many stories where borrowers had nowhere else to turn and contacted their loan agent to see if a solution could be reached. If nothing else, title lenders remember you, and this action could help with title loan refinance offers later on.


What Happens If My Car Gets Repossessed By A Title Lender And Sold At Auction?

If your car is finally sold at a licensed and regulated vehicle auction and it brought in enough money to cover what’s owed (plus the title lender fees), then you’re not responsible for anything more; on top of that, your finance company will send you the balance above and beyond what it took to pay off the loan and any other late or repossession fees.

However, if your car goes unsold or brings in less than its value, the title loan company will pursue other collection activities to get what they can from repossessing your car. Not all title lenders take that step, but some may try to sue you to recover their losses!

Don’t get overwhelmed with the thoughts and threats of title loan repossession and shop around for title loan refinance offers or better terms elsewhere with a lender that wants to work with you and better understands your financial situation!


Understand the title loan repossession laws before you contact a lender.

Posted in lending questions