You can sell a car that still has a title loan on it. However, how you plan to sell the car matters. If you sell to a dealership, the transaction will be smoother, but a private buyer would probably pay more. If they got their title loans from companies like TitleMax Loans, San Diego residents will need to pay off the title loans before they can transfer the titles to the next owners.
A car title loan means you have a lien on your car title, which means the car belongs to the lender. The car was the collateral for the loan, and until the lien is paid off, you don’t own the car. You should call your lienholder to find out the exact amount you owe. You could see about using the money from the sale of the car to pay the loan or finish paying it while the vehicle is for sale. Whatever you choose to do about the remainder of the loan, contact the lienholder.
Selling to an Individual
If you sell your car to a private individual, there are several options. The common option is to pay off the loan before you sell the car. You can finish paying the loan while you have the car up for sale. After the loan is paid, the lienholder will send a release document to the state transportation agency to update your info. Another option, which has to be approved by the lienholder, is to have the new owner pay off the loan. If you can do this, the lienholder will make sure the buyer can pay it off. The two simplest options for transferring the loan are having both parties meet with the lienholder and setting up an escrow account.
Paying Off the Loan
Paying off the title loan first is the simplest way to sell your car. California has some companies that can help you pay off the loan more quickly. These companies can lower your payments to make them more manageable, and they offer competitive interest rates for title loans. The three ways to talk with these experts is to call them toll-free, sign up online, or walk in to one of their many locations. You’ll need multiple documents relevant to the loan, your car, and your job.
Transferring the Title
Transferring the car title is the next important step in the process, but a title cannot be transferred until the loan is paid off. If the state sees a hold or lien on the title, it will stop any transfers in progress. If you don’t have the money to pay off the loan, you could ask to pay it off with the money from the sale. Make sure to talk to the buyer about it beforehand. Some people might not mind waiting for the transfer of the title.
Even if you’re planning to sell your car soon, a car title loan can be the perfect short-term solution for getting the quick cash you need. If they’re looking for high-quality service when applying for title loans, San Diego car owners can trust the professionals from Payless Car Title Loan. Give us a call today at 619-600-0061 to find out how we can help.