Editor's choice: Max Cash Title Loans
- No bank account required
- No prepayment penalty
- Loans up to $50,000
Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our opinions or reviews. Learn how we make money.
If you find yourself unable to keep up with payments through the end of your term, you may have an option beyond rolling over your balance into a new loan or, worse, losing your car. With research, you might find a title lender willing to buy out your existing loan, replacing it with another offering lower interest or stronger terms on the amount you owe.
A title loan buyout is an agreement between two lenders offering title loans. To take advantage of a buyout, you find a title loan company willing to buy out your existing title loan, essentially paying off your existing title lender. Like refinancing, your new auto title lender then replaces your old title loan with a new one, ideally at lower rates or better terms.
Many short-term title lenders and pawn companies specialize in title loan buyouts, though typically with terms of 30 days — not long if you’ve got a hefty loan to repay. If you qualify for a loan from a local bank or credit union, you can avoid short-term lenders altogether at a lower interest rate than most buyout companies can offer.
A title loan buyout starts with finding a lender willing to pay off your existing title loan at rates and terms that meet your needs. You provide basic personal and financial details to learn the interest rate, repayment terms and conditions you’re eligible for. After that, it’s a matter of signing your contract and paying your new lender.
After you successfully satisfy your title loan buyout, you again own the title to your car outright.
While a few short-term lenders will advertise otherwise, a title loan buyout is very much like title loan refinancing. Both involve switching lenders or negotiating stronger terms with your current lender. Each can help you better manage your payments with less overall interest than you’d pay by not renegotiating.
The difference lies in who they’re marketed to. Refinancing generally focuses on borrowers in good standing who are looking to save money on their title loan. Title buyouts are marketed to people who’ve fallen behind on payments or struggle to meet them.
A title loan buyout isn’t your only option when you’re unable to stay above water with an existing title loan. Before extending your debt, look into alternatives that include:
An auto title loan buyout is like refinancing your existing title loan for another at rates and terms that better match your budget, allowing you to keep your car. But be careful of high APRs and high fees.
Before signing a new contract, read our comprehensive guide to auto title loans.
Image source: Shutterstock
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.