If there is a lien on your title that implies that you are not currently the legal owner of the vehicle but rather the lienholder is. A rule of thumb is that in order to get a title loan, your title must be free and clear of any liens. So to get a title loan with a lien you must go through some steps in order to clear this.
The following options are suitable if you have a title that has a current lienholder:
1. Pay off to the current lienholder. This means that you will pay off your current lienholder and receive a clear and free title back. After this, you can turn to a new title loan lender and start the loan borrowing process. The downside to this option is it can be lengthy in time since you are awaiting for the title from the lienholder.
2. 3rd party payoff. Under this process, your chosen title loan lender pays off your current lienholder and the title gets sent to the lender directly. This is a great option if you’re looking to improve your loan terms or get extra cash when you’ve already borrowed some money off of the vehicle.
Before choosing your preferred option, we suggest consulting with your chosen auto title loan lender so they can work with you personally to make the process as quick and smooth and possible. We’ll be happy to help with this and answer any remaining questions.
More info on How To Change a Legal Owner Only (HTVR 18)