Title Loan on Financed Car? Unlock Funds Fast (2026)

Many Australians find themselves in a financial bind, needing quick access to cash but unsure of their options when they have a financed car. The question often arises: can you get a title loan on a financed car? Understanding your options and making informed decisions can be the key to navigating such financial challenges effectively.

Understanding Title Loans

Title loans are a type of secured loan where the borrower uses their vehicle's title as collateral. Typically, these loans are short-term and have higher interest rates compared to traditional loans. The lender holds the title until the loan is repaid, and if the borrower defaults, the lender may have the right to take possession of the vehicle.

However, obtaining a title loan on a financed car adds complexity. In such cases, the lender for the title loan must be willing to take a second position on the title, as the first lien is held by the institution financing the car.

Rates, Requirements, and Options

When considering a title loan on a financed car, it's vital to understand the typical interest rates, requirements, and the options available to you. As of 2026, here's what you can expect:

With Esteb and Co's access to 83+ lenders, we can explore multiple options for securing a title loan while considering your financed car's circumstances.

Steps to Secure a Title Loan on a Financed Car

If you're considering a title loan on your financed car, here's a practical guide to assist you:

1. Evaluate Your Car's Equity: Determine how much equity you have in your car. This is calculated by subtracting the remaining loan balance from the car's current market value.
2. Contact Your Primary Lender: Discuss your intention to take a title loan and obtain their consent. This is crucial as they hold the primary lien on the vehicle.
3. Research Title Loan Options: Use the resources available through Esteb and Co to explore lenders willing to offer a second lien title loan.
4. Prepare Necessary Documentation: Gather your ID, proof of income, and car details, including the loan statement and title.
5. Apply for the Loan: Submit your application to the chosen lender, ensuring all information is accurate and complete.
6. Review Terms and Conditions: Carefully review the loan agreement, focusing on interest rates, fees, and repayment terms.
7. Receive Funds: Once approved, receive your funds and use them as needed, keeping in mind the repayment schedule.

Expert Tips and Considerations

Securing a title loan on a financed car can be daunting, but with careful consideration, it can be a viable solution. Here are some expert tips:

• Consider Alternatives: Before committing, explore other financing options, such as personal loans or refinancing, which might offer better terms.
• Understand Risks: Recognise that defaulting can lead to repossession. Ensure your repayment plan is realistic and within your budget.
• Negotiate Terms: Don't hesitate to negotiate interest rates and terms with the lender. A slight reduction can save you significantly over time.
• Plan for Repayment: Establish a clear repayment strategy. This might include setting up automatic payments to avoid missing due dates.
• Seek Professional Advice: Consult a financial advisor or a mortgage broker, especially when dealing with complex financial products.

Frequently Asked Questions

• Can I get a title loan if I still owe money on my car?
  Yes, but it requires the consent of your primary lender and the title loan lender's willingness to take a second lien.
• What happens if I can't repay the title loan?
  If you default, the lender may repossess the car. It's crucial to communicate with the lender if you're facing repayment difficulties.
• Are title loans available for any car model?
  Most lenders prefer newer models in good condition, but requirements vary by lender.
• How is the loan amount determined?
  The loan amount is typically a percentage of your car's market value, considering your equity.
• Can I pay off the loan early?
  Many lenders allow early repayment without penalties, but it's best to confirm with your lender.
• How does a title loan affect my credit score?
  Timely repayments can improve your score, whereas defaults can harm it. Always verify reporting practices with your lender.
• What if my car is repossessed?
  Repossession is a last resort. The lender will sell the car to recoup the loan balance. You might still owe if the sale doesn't cover the full amount.