When you have a title loan on your car, the legal owner of it is the lender and therefore there is a lien placed on your car title. In other words, the legal ownership of the car belongs to the lender even if you get to keep driving it.
Given this, selling a car with a title loan must involve paying it off first. This needs to be done correctly in order to avoid future problems for both the seller and buyer.

If you want to sell a car with a title loan on it, you have a few options:

1. Paying off the car title loan first: This is the simplest and safest option. When you pay off your title loan, you will receive a clean title back (with no lienholder). This way, you can proceed with the standard car-selling process and have no worries related to the loan.

2. Trading in or selling a car to dealership: If you decide to sell your vehicle to a car dealership, it is possible for them to pay off your loan as part of the trade-in. In other words, the dealership will complete the entire payoff process with the lender and they will be the ones to receive the title back.

3. Selling a car to a private buyer: This process can be complicated and requires much attention to details. If you decide to sell your car privately while having an active loan, you will need to find someone who is comfortable with taking over the loan. Not many lenders allow this so make sure to discuss it with them in advance and verify that it is allowed under your contract.

4. Refinancing with 5 Star Loans: Many people who have a title loan they cannot afford, consider selling their vehicle to cover costs. If you have a loan with another lender but you can no longer afford it, consider a refinance with 5 Star Car Title Loans. Our company can offer competitive terms and allow you to get back on track with your finances!

Click for more information on:

A. How Can I Start Selling a Car with a Title Loan (full process)?
B. How to Pay Off Your Title Loan Early?
C. Refinancing Your Car Title Loan