Need a Title Loan? We can Help You!

Get Same Day Cash And Keep Driving Your Car. Fast, Convenient, No Hassle Process. Apply Now and Find Out How Much Money Your Car Qualifies For!!

How Much Cash Can I Get?

Can You Legally Scrap A Car With A Title Loan

Categories: automotive,  Blog,  Car Title Loans,  Car Title Loans California Blog
220

If your car no longer works and you want to scrap it, but it has a title loan out against it, then things can get complicated. You can still scrap your vehicle legally in California, but it’s a little more complex than just taking it down to the scrapyard and handing it over. If you’re not careful and don’t do your research, then you can get into a lot of trouble with the company that gave you the loan.  

In this article, we will explore how you can legally scrap a vehicle that has a title loan still on it:

What Is A Title Loan?

You can still sell and scrap your car, even with a title loan on it. However, it isn’t a simple process. When you take out a car title loan, there is a lien placed on your vehicle’s title. That means that your vehicle’s title belongs to the lender that you have taken the loan out with. Your car’s title is collateral for your loan, which means that if you don’t pay your loan back, the lender can repossess your vehicle. Until the loan has been paid off, the lien won’t be released. Until the lien’s released, you can’t sell or scrap your vehicle.

Scrapping Your Car

If you try to transfer ownership of your vehicle to the scrapyard when a lien is put against it, the State of California will be notified. There’s a good chance that they will block the transfer from happening. If you intend on using the money you receive from scrapping your car to pay off the loan, you will have to explain that to the scrapyard. That essentially means that they will pay you, then you will pay the loan company, and then you transfer ownership of the vehicle. Unfortunately, most scrap yards won’t agree to this.

Paying Your Loan

If you want to sell or scrap your vehicle, most experts recommend that you pay back your loan first. You could even borrow money from a friend or family member to pay back the loan, then pay them back out of the money that you get from scrapping your car. This makes the process much easier. By doing this, you won’t have to barter with scrap yards or try to negotiate payment before the title is transferred. Once your loan is paid in full, you can sell it or scrap it.

Cash for Cars

The only other solution [which is probably the easiest] is to contact a cash for cars company. Cash for cars companies is very easy to talk to. There’s no headache involved. They understand that if your vehicle has a title out against it, there’s nothing that you can do. Most of them will be very easy to work with. You may be required to sign a contract beforehand, saying that once the car’s loan is paid, that you will transfer ownership of the vehicle over to them. This is to stop you from running off with your money.

If you have a loan on your car and you want to get rid of it, then dial UsJunkCars at 888-871-4488 for more information, or visit the company website via the link. Moreover, this company provides services throughout California.

So, in answer to this article’s titular question: Yes, you can scrap your car. However, first, the title loan must be paid off. This article provides a few solutions for paying your car’s title loan off, so give them some thought.

This article was brought to you by Car Title Loans California.

If you need to get a title loan, we have the largest referral network, so we will be able to get you the best title loan for you. All of our referral partners are in compliance with the CFPB.

Trading Financial Credit, LLC may act as the broker for the loan and may not be the direct lender. Loan proceeds are intended primarily for personal, family and household purposes. Trading Financial Credit, LLC does not offer or service student loans. California loans are made or arranged pursuant to a California Financing Law License : 603-8192. Arizona: Loans made pursuant to Arizona Department of Financial Institutions.

New Mexico: Loans made pursuant to New Mexico Regulation and Licensing Department Financial Institutions Division Small Loan Company License. Small Loan License 02069

*Credit approval is subject to Trading Financial Credit, LLC credit criteria standards. Actual loan amount, term, and Annual Percentage Rate of the loan that a consumer qualifies for may vary by applicant. Minimum loan amounts vary by state. Consumers need to demonstrate ability to repay the loan.

*Application processes could take five (5) minutes to complete. Upon completion, a conditional approval may be given pending review of documentation. Funding time is based on the time from final approval following receipt and review of all required documents and signing, prior to 5PM PST on a business day.

*Trading Financial Credit, LLC dba TFC Title Loans, Car Title Loans California, Dineromax. If you are using a screen reader and are having problems using this website, please give us a call at 1-844-242-3543 for immediate assistance.