Call Us Today (844) 567-5011
Call Us Today (844) 567-5011
Call Us Today (844) 567-5011
Call Us Today (844) 567-5011
Getting out of a car title loan can be difficult, and it's never fun to negotiate alternate loan payoff options or settlements with someone asking for money. But it's better than being in a situation where the lender repossesses your vehicle because of a lack of payment. Or worse, your vehicle is for sale at an auction because you fell behind on payments. That's why you must take the initiative and be aggressive if you feel you must legally get out of a car title loan.
There are ways to get around these lending hassles and retain possession of your car without paying the entire amount due on the loan as listed on your contract. Follow along as Car Title Loans 123 breaks down your handful of options to get out of a car title loan contract.
If you don't have enough cash to zero out your debt but want to avoid a vehicle repossession, the next best thing is to roll over or renew your loan. Some people applying for online title loans with no store visit are already struggling financially, which causes problems later in the loan term. A loan rollover can be beneficial because it allows you more time to put together the amount owed, plus interest. Even better, most states allow borrowers to extend their original maturity date (the date on which the principal was due) when they renew, extending their payoff date.
A loan rollover may not apply to a car title loan in every situation, as it's mainly used for payday loans and cash advances. But some states will allow a title loan rollover, and it's a viable solution if you're facing default.
Selling your car sounds like the best scenario, as you can sometimes get more money than your vehicle is worth. But you will also need to deal with the fact that the lender has your car title, which makes it nearly impossible to sell your vehicle. Most states make transferring a valid title from one owner to another easy, but you still have to negotiate terms and complete the sale. One option is to sell the vehicle and see if your lender is open to negotiating the loan payoff amount. For instance, if you owe them $6,000, see if they'll take more than the amount due as payment for your vehicle from a 3rd party. As mentioned above, this method doesn't always work because you still have a 1st lienholder on the car's title, but sometimes you can negotiate a payoff amount if your lender suspects the loan will end up in default.
Lenders will work with their customers if they know there's a chance they will default on the loan and not make the payment payments. They know that money coming in is better than nothing, and that's preferable to having to sue their borrowers and repossess a vehicle.
Another option when contacting your lender is to ask them if they can stretch out the payment term to get a lower monthly payment. Some customers can't afford the monthly payments, but you can lower the monthly payment by increasing the payment term by a few months. Yes, you'll pay more in interest over the life of the loan. But the tradeoff is that you can avoid defaulting on the loan with a more management payment each month.
Payment arrangements are great for borrowers because lenders have harsh penalties for defaulting on a loan, including additional fines and, ultimately, a repossession of your vehicle. Remember that title loan companies would rather not spend money repossessing your car; they would instead work with you to negotiate a payback plan.
Some companies offer transfers of title loans to avoid a default and costly repossession, but your vehicle must meet specific requirements. These requirements are that you can't have already defaulted on the loan. That means you must have physical possession of the vehicle and even if you're behind on the payments, you need the ability to get back to current.
A title loan refi is similar to a buyout and can save you considerable money. Still, again, you will typically need to be current on the payments, and most people looking to get out of online title loans face a financial shortfall. Unfortunately, most lenders will find no reason to charge more interest when extending the life of your contract. Transferring or rolling over the car title loan will be difficult.
Ignoring the payments can cause untold problems and financial headaches, and you will incur additional penalties and fees in addition to what you already owe.
Call Car Title Loans 123 at 844-567-5001 to find out how we can help you get out of your car title loan. Whether you need to negotiate the payment terms or payoff your lender in full, there are ways to get out of title loan debt legally!
