The sharing economy offers new opportunities to make money, but can you get a title loan if you share your car with others?
Nothing is going to waste these days – if you have a car and you don’t use it all the time, there’s a site that will help you share it with others. Even if you don’t use a sharing service you might share your car with your partner, a sibling or even a friend. If you’re in this situation and want to know if you can take out an auto title loan, we’ve covered everything you need to know in this guide.
What is an auto title loan?
LoanMart Car Title Loans
If you need cash today but don't want the hassle of a payday loan, it may be worth considering an auto title loan. With LoanMart you can borrow funds against the value of the car and your ability to repay. You could have your cash within 24 hours.
- Interest Rate From: 60%–222%% p.a.
- Interest Rate Type: Fixed
- Minimum Loan Term: 1 year
- Maximum Loan Term: 5 year
- Minimum Loan Amount: $1,000
- Maximum Loan Amount: $50,000
An auto title loan is a form of secured loan that involves a lender holding the title of your car as collateral for a loan. You still get full use of your vehicle while repaying your loan, and at the end of the term — if you’ve repaid the loan in full — you get your car title back. Car title loans are an option for people with less-than-perfect credit.
Can I take out an auto title loan if I share my car?
You are only eligible for an auto title loan if your name is on the car title. If your partner’s name is on the title, only they will be able to take out the title loan, even if you’re the main driver.
Auto title loans you could apply for
A selection of loans you can apply for
Here are some loan providers that you can apply to. Note that the max loan amount is based on the lender’s max amount. The amount will vary based on your state of residence.
A selection of lender matching services you can apply with
These lender matching services are not lenders, loan brokers or agents for any lender or loan broker. They also do not make credit decisions. They focus on trying to match you with a lender that might be able to provide you the funds you seek. Note that the max loan amount is based on the matching services max amount, but it will vary based on your state of residence. If you proceed with one of these services, confirm that the lender is reputable by checking with your local government.
My name isn’t on the car title. What are my options?
If your name isn’t listed on the car title, you can consider these options to help you secure a loan:
- Change the name on the car title. If you do share your car with a close friend, family member or your partner, they may be willing to transfer the vehicle into your name for the purposes of the loan. Explain to them why you want the title transferred into your name (for finance purposes). Notify the Social Security Administration (SSA), and then visit to the DMV. Make sure you bring all the required documents.
- Consider an alternative loan. If you have bad credit you can still be eligible for another type of loan. You can consider short term loans for small-dollar financing, or installment loans for larger loan amounts. If you have a fair or good credit score, generally considered to be 650 and above, you may qualify for a peer-to-peer loan. Rate estimates are usually available from marketplace lenders without it affecting your credit score.
Car title loans are only one type of financing, so if you find you are not eligible because of a shared vehicle there are a wide variety of other options to consider.
If you do qualify for a car title loan, make sure the person you share the vehicle with is aware the car title is being used as security for a loan. Remember to consider all of your options before you apply to get the right loan for your needs.