Can You Get A Title Loan On A Financed Car?
If you’re still making payments on your car but find yourself short on cash, you’ve probably wondered: Can I get a title loan even though I haven’t paid off my car yet?
It’s a fair question — and a surprisingly common one. Life doesn’t wait until your car’s paid off to throw curveballs your way. Emergencies happen, bills stack up, and sometimes you just need fast access to money.
The short answer is yes, you can get a title loan on a financed vehicle — but it depends on your equity, your state laws, and the lender’s policies. In most cases, lenders will only approve a title loan if there’s enough value left in the car after paying off your current lienholder.
Apply For A Car Title Loan In Your State
How To Get A Car Title Loan If Your Car Isn’t Paid Off
Here’s how it usually works:
- Check your car’s equity.
Your equity is what’s left when you subtract what you still owe from your car’s current market value.
Example: If your car is worth $10,000 and you owe $4,000, your equity is $6,000. - Find a lender that accepts financed vehicles.
Not all lenders do. Some require a clear title — meaning no liens. But others will work directly with your current lienholder to pay off your existing loan first. - Apply and provide documentation.
You’ll typically need:- Valid ID
- Proof of income
- Proof of residence
- Proof of insurance
- Vehicle title or registration
- Get a conditional offer.
If approved, the lender may pay off your existing car loan and become the new lienholder. You’ll then owe them under new title-loan terms. - Receive your funds.
The cash you get is usually the remaining equity after your old loan is paid. Using our earlier example, if the lender offers you $5,000 on that $10,000 car, they’ll pay $4,000 to your old lender and you’ll receive $1,000 in cash (minus fees).
Read More: How To Get Out of a Car Title Loan Without Losing Your Vehicle
How Title Loans on Financed Vehicles Work
A title loan on a financed car is essentially a refinance with cash out.
Instead of owning your vehicle outright, the title lender steps in, pays off your balance, and replaces your previous lien with their own. You keep driving the car, but now your title lists the title-loan company as the lienholder.
These loans are short-term — often 30 days — and are secured by your car. That means if you don’t make payments, the lender has the right to repossess your vehicle and sell it to recover what’s owed.
Title loans are marketed as quick and easy, but they come at a cost. While the process may feel like a financial shortcut, the average APR can reach 200–300% in states where it’s legal. That’s why understanding your options and obligations before signing anything is crucial.
Risks and Considerations With a Title Loan on a Financed Car
Let’s be real — title loans are not for everyone. They’re designed for people who need fast cash and are confident they can repay it quickly. But here’s what you need to weigh carefully:
1. You could lose your car.
If you default, the lender can repossess your vehicle. That means losing your main mode of transportation — and potentially still owing money if the sale doesn’t cover the loan balance.
2. The interest rates are steep.
Many title loans carry triple-digit APRs. For example, borrowing $1,000 could cost you $250 in interest every month until it’s repaid.
3. Rollovers can trap you.
Some borrowers “roll over” their loans when they can’t pay in full, tacking on more fees and interest. That’s how a quick loan turns into a long-term financial problem.
4. State laws vary.
Some states cap APRs at 36% or ban title loans outright. Others, like Texas or Arizona, allow them but regulate how much a lender can charge. Always check your local laws before applying.
5. Better options may exist.
Personal loans, credit union advances, or hardship extensions with your current lender can often provide relief at a fraction of the cost.
Apply For A Car Title Loan at Loan Cheetah
If you’ve run the numbers and decided a title loan is the right move for your situation, Loan Cheetah can help you do it safely and smartly.
We work with trusted lenders across the country who are transparent about their rates and terms — no hidden fees, no gotchas, just fast funding when you need it most.
You can start your application online, find out how much equity your car has, and get matched with lenders who accept financed vehicles.
Ready to see your options?
Apply for a car title loan with Loan Cheetah today.