If you’re trying to sell your vehicle but still have a car title loan with a lender, you might wonder if a car dealership can purchase your car with a title loan on it. The answer is yes, but you must repay the loan before selling it. Although some car dealerships might pay off the title loan in some situations, not everyone would do the same. It’s probably best to pay off the loan yourself before a car dealership buys your car.
Read below for more information on selling a car to a car dealership with an active title loan still on it.
Remember, when you have a car title loan, a title loan lender places a lien on your vehicle title. That means the car title is not clear. Once you have paid the car title loan in full, the lender will remove the lien. You might wonder- what if I face issues during the repayment process?
Fortunately, some title loan providers can assist borrowers that have problems covering their title loan installments. For example, an auto title loan lender could help set up a different payment plan that is convenient for you. Not only that, but there might be an option to refinance the loan if you struggle with covering your remaining balance. Just make sure you speak to your lender as soon as you have repayment issues. It’s best to talk to your title loan lender immediately before that situation worsens. You could save yourself from ending up in a cycle of debt that can be hard to escape.
After you repay the car title loan, you could finally sell your vehicle to a car dealership. Talk to your title loan lender or provider if you have questions or concerns about the repayment process for an auto title loan. They could help break things down for you and assist you along the way.
As you may have read, selling your car to a car dealership may be simpler if you pay off the title loan first. The transaction will not be complete until the loan is paid off, so it is easier to pay it off before you sell the vehicle.
Remember that selling your car through a dealership could be simpler than selling with a private party; however, it comes with the cost of getting less money than you would if you sold it privately. A car dealer might offer to assist you in repaying the entire loan amount and take over the title transfer process for you. Yet, know that a dealership might not give you enough cash for the sale because they’re seeking to get some money. If you choose to sell your vehicle to a private party, you might still have to pay off the car title loan before making the transaction, or in some instances, you can find someone to help you complete your payment obligations.
While these are not bad options, you could benefit from finishing the title loan installments before you sell your car. Although selling it through a car dealership can be simpler, you might not earn a significant cash total. If that’s not a problem, then you could let a dealership purchase your car. Otherwise, you may fare better by selling your vehicle to a private party.
Contact your title loan lender or provider if you have questions about selling your car to a car dealership. They could advise you depending on what you’re looking for. Just remember to pay off the title loan before selling it to anyone!