Have you ever wondered whether you can get a title loan if you still have an auto loan balance?
It’s a common question, especially for drivers facing unexpected expenses. The good news is
that it is possible. Many lenders offering car title loans and truck title loans in California allow
borrowers to qualify even if they’re still making payments on their vehicle.
In this article, we’ll explain how the process works, what lenders look for, and what steps you
can take to make the most of your loan options. By the end, you’ll understand how California
title loans can work when you still owe money on your car, so you can make a confident,
informed decision.
Understanding Title Loans When You Have an Existing Auto Loan
A car title loan allows you to use your vehicle as collateral in exchange for a short-term loan.
Normally, borrowers need a lien-free title, meaning the car is fully paid off. But, some lenders
provide title loans in CA even if there’s still an outstanding balance.
This process is known as a second-position title loan or a title loan with a lienholder payoff.
Instead of rejecting your application, the lender works with your current lender to pay off the
balance or secures a position behind the existing lienholder. The key factor is whether your car
has enough equity to cover the loan amount.
Equity: The Deciding Factor
Equity is the difference between what your car is worth and what you still owe. For example, if
your vehicle is worth $12,000 and you owe $4,000, your equity is $8,000. Lenders may approve
you for a portion of that equity through a title loan.
According to Kelley Blue Book, the average price of a used vehicle in the U.S. was around
$26,500 in 2024, which means many drivers may have thousands in equity to work with. That’s
why title loans remain a practical option for people who need quick financial relief without selling
their car.
How the Process Works
Here’s what usually happens if you apply for a title loan while still owing money on your car:
- Application – You submit basic information about your vehicle and loan status.
- Valuation – The lender assesses the current market value of your car or truck.
- Balance Check – Your current payoff amount is verified with your existing lender.
- Loan Approval – If enough equity exists, the title loan is approved.
- Lien Management – Either the new lender pays off your balance directly, or they file a
lien behind your original lender.
This process is designed to ensure both lenders are protected while giving you access to the
funds you need.
Benefits of Car and Truck Title Loans in California
One reason people turn to California title loans is speed. Unlike traditional bank loans, which
may take days or weeks to process, title loans can often be completed within 24 hours. That
means if you need urgent cash for medical bills, home repairs, or unexpected emergencies, this
type of financing can be a lifeline.
Truck title loans are also widely available. Many Californians rely on pickup trucks for work, and
lenders recognize their higher value, which often allows borrowers to access larger loan
amounts.
Important Considerations Before You Apply
While title loans can provide fast relief, it’s important to approach them responsibly. Here are a
few things to keep in mind:
● Interest rates and terms can vary significantly between lenders. Always read the loan
agreement carefully.
● Repayment ability is key. Make sure you can manage the monthly payments to avoid
risking your vehicle.
● Lender reputation matters. Working with a trusted provider like Quick Title Loans can
ensure a smoother, more transparent process.
According to the Consumer Financial Protection Bureau, borrowers who take time to understand
their loan terms are less likely to face repayment issues. That’s why asking questions and
reviewing details before signing is crucial.
Why Work with Quick Title Loans
Not every lender in California is willing to work with borrowers who still owe money on their cars.
Quick Title Loans offers flexible options for both car title loans and truck title loans, even when a
balance remains. The company’s team helps customers navigate lienholder payoffs, equity
checks, and approval requirements, making the process less stressful.
If you’re unsure how much equity you have, Quick Title Loans can provide an estimate based on
your vehicle’s make, model, mileage, and current loan balance.
Final Thoughts: Take the Next Step with Confidence
Getting a title loan when you still owe money on your car isn’t just possible, it can be a smart
solution if you understand the process. By focusing on your car’s equity, choosing a reputable
lender, and reviewing repayment terms, you can secure fast financial help without giving up your
vehicle.
If you’re ready to explore your options for car or truck title loans in California, reach out to Quick
Title Loans. Their friendly team is ready to answer your questions, walk you through the
process, and help you find the loan that fits your needs today.