Title Loan Buyouts

Car title loans are a quick and easy way to get emergency funds to pay for your medical bills, home repairs, or any other unexpected expense you can’t afford at the moment. Using your vehicle as collateral, you can receive cash even on the next day and pay off the debt later.

The borrower rarely gets involved in the buyout process, but if they do, it doesn’t hurt to learn what the transaction entails and whether there is something you can do. So sit tight, and let’s explore what car title buyouts are. 

Key Highlights

  • A car title loan buyout is a business transaction between two lenders. 
  • A car title loan buyout usually doesn’t affect your interest, fees, and loan term. 
  • You can opt to refinance your car title loan and find a lender with more favorable terms. 

What Is a Car Title Loan Buyout?

A car title loan buyout is a transaction between your current lender and a new one. In simple terms, your lender initiates the process and transitions to another lender without the borrower’s involvement. 

In most cases, the interest rate, amount of monthly payments, and loan term does not change. So, it doesn’t really affect you or your title loan, nor do you have to be involved in the process. 

How Does a Title Loan Buyout Work?

As you already know, a car title buyout is a transaction between two lenders and, more often than not, does not include borrowers in the process. Going through a loan buyout doesn’t really have any effect on your current terms and conditions. On the contrary, everything remains the same. 

During the transaction, your current lender discloses two important pieces of information, such as your terms of the existing loan and the remaining balance. 

Additionally, there is nothing a new lender requires you to do – you carry on paying monthly payments until the debt is fully paid off but to a new lending institution. 

No-Hassle Title Loans with Titlelo

Who Buys Out Title Loans?

Car title loan buyouts usually happen between two lending companies. This means if you want another lending institution to buy out your car title loan, you simply don’t have the ability to do it. After all, it is a business transaction. 

The reason title pawns decide to buy out a loan is often to improve their lending portfolios and establish trust with potential borrowers. 

Can You Prevent a Car Title Loan Buyout?

Let’s assume you are happy with your current lender and do not wish to change things or partner with an unknown lending institution. Unfortunately, there is little you can do. 

A car title loan buyout can only be initiated by another lender, and borrowers have little to no say in this decision. 

However, if a title buyout is a signal for you to jump ship, refinancing may be a better choice for you.  

Difference Between a Car Title Loan Buyout and Refinancing

A car title loan buyout and refinancing are fairly similar processes with a few key differences:

  1. Borrower’s Involvement: Title loan buyouts rarely require borrowers to be part of a transaction. Refinancing, on the contrary, is a transaction initiated by no one else but a borrower. 
  2. Term and Interest Rates: A car title loan buyout commonly offers the same terms, fees, and interest rates as you have with your previous lender. Qualifying for a refinancing, you may benefit from a longer term to pay off the loan and more favorable interest rates. 
  3. Initiation of the Loan: Borrowers cannot initiate or require a title loan buyout online since it’s usually a business arrangement between two lending institutions. However, if you want a better interest rate, customer service, and a longer loan term, refinancing may be the right solution for you. 

How to Refinance Your Title Loan?

If a lender whom you are unfamiliar with buys out your title loan, instead of continuing on the same terms, you can refinance and take advantage of better rates and longer deadlines. 

The documents you need to gather for refinancing are similar to when you were applying for a car title loan, with one additional paper:

  • Authorization to pay off the loan 
  • Government-issued ID
  • Proof residence 
  • Vehicle title in your name 
  • Proof of income

To legally allow a new lender to pay off your loan, you will need to provide them with authorization. This document has to be ready and at your new lender’s desk (or email) at the time of signing the contract. 

Pros and Cons of Refinancing a Car Title Loan Online?

You can reduce your interest rate through refinancing You can lower your monthly payments if you accept a title loan with lower interest You can prolong or shorten the loan term depending on whether you are ready to pay off the debt now or laterYou may end up paying more in interest if you refinance to a longer loan termDepending on the state, you may be required to pay fees to re-register your title loan in another lender 

Apply for Title Loan Refinancing Now

Applying for title loan refinancing with Titlelo takes just a few clicks. Here is what you need to do:

  1. Fill out the application form.
  2. Provide us with your personal information (e.g., full name, phone number, email address, etc.).
  3. Type in your address.
  4. Fill out the characteristics of your vehicle (e.g., made and model, year, mileage, etc.).
  5. Choose “Another title lender has my title.”

And that’s all that needs to be done. Our team will quickly review your application, approve it, and help you connect with the right lender. 

Final Word

Title loan buyouts rarely affect your interest, terms, and fees – however, it doesn’t mean you shouldn’t be the initiator of finding more favorable conditions. 

If your lender agrees on a title loan buyout, it could be a good chance to refinance and find yourself a new lender you can trust and who has transparent pricing. 

Titlelo can help you connect with the right lender and fast. You can get approved as quickly as on the same day or the next day and receive lenders’ offers directly in your email. 
Choose Titlelo – take control of your finances in a few clicks!