How Much Can You Get with a Car Title Loan?
If you need cash quickly and don’t qualify for traditional financing, a car title loan can seem like a fast solution. These loans use your vehicle as collateral, are easier to qualify for than bank loans, and can be processed in as little as 24 hours. In many cases, you can even apply for a title loan online, making them convenient in emergencies.
But before you apply, you need to know: how much can you actually get with a car title loan—and what factors determine that amount? Today we’ll show you what kind of value you can expect for your car depending on what you drive and where you’re located.
How Much Can You Get with a Car Collateral Loan?
The amount you can borrow depends on two main factors:
- Your vehicle’s value
- Your lender’s policies and state laws
Most lenders use tools like Kelley Blue Book to estimate your car’s fair market value, then offer a loan worth 50–55% of that value.
Example: If your car is worth $5,000, expect a title loan offer of around $2,500.
According to the Consumer Federation of America, the most common loan amounts range from $600 to $2,500, but in some cases—especially with newer or high-value vehicles—you could get more.
State Laws Can Affect Loan Amounts
In addition to lender limits, state laws can cap how much you can borrow. For example:
- Illinois limits title loans to $4,000 or less, and payments can’t exceed 50% of your gross monthly income.
- Many states require equal installment payments rather than balloon payments at the end of the term.
Title loans are not legal in more than 20 states, so availability also depends on where you live.
States that currently allow title loans include:
Alabama, Arizona, Delaware, Florida, Georgia, Idaho, Illinois, Kentucky, Mississippi, Missouri, Minnesota, Montana, Nevada, New Hampshire, New Mexico, Oregon, Rhode Island, South Dakota, Tennessee, Texas, Utah, Virginia, and Wisconsin.
They are also available with restrictions in California, Kansas, Louisiana, and South Carolina.
How to Qualify for a Title Loan
While requirements vary by lender, you’ll generally need:
- A clear vehicle title (no liens) in your name
- Government-issued ID
- Proof of income (pay stub, benefits, or bank deposit records)
- Vehicle registration and insurance
- Vehicle details: year, make, model, VIN, and mileage
- Sometimes: a second set of car keys
No credit check is required for most title loans, making them accessible for borrowers with bad or no credit. In general, though, this also means that the loans will be secured – meaning that they’ll be borrowed against a piece of collateral that will be seized in the event of nonpayment.
Understanding Title Loan Interest Rates
With pros always come cons, and car title loans are no different. Title loans are fast to be sure, but the caveat is that they also tend to be very expensive. Many lenders charge 25% per month in interest.
If you borrow $500 for one month, you might repay $625—$500 principal + $125 interest.
Always read the fine print for:
- APR (Annual Percentage Rate)
- Fees (lien fees, processing fees, late payment charges)
- Early repayment policies
Also, because of this we would recommend that you stay on top of your payments and make sure that the loan you take out is paid off as soon as possible. This way, you’ll avoid further interest from accumulating.
Repayment Options
Speaking of repayment, there are a few ways that lenders will often let you repay your title loan:
- In person at a local branch
- Online via their portal
- Automatically through bank account or debit card withdrawals
Automatic payments can help you avoid late fees, but always confirm the schedule and keep enough funds in your account to prevent overdrafts.
What Happens If You Can’t Pay?
If you miss payments, the lender can repossess your car. In some states, lenders must return any surplus from the vehicle’s sale. For example:
If you owe $1,000 and your car sells for $4,000, you could get $3,000 back—depending on state law.
Other states allow lenders to keep the full sale amount, so check your local regulations before signing.
Key Takeaways: How Much You Can Borrow
- Expect 50–55% of your vehicle’s value as the loan amount.
- State laws can set strict loan limits and repayment rules.
- Loan sizes typically range $600–$2,500, but high-value vehicles may qualify for more.
- Interest rates are high, so know the total repayment cost before accepting.
A car title loan can be a short-term solution if you understand the risks, the amount you can realistically borrow, and the rules in your state. The more you know going in, the better you can decide if it’s worth it for your situation.