Car title loans make it easy to get cash in a hurry. Use your clear title to collect on the equity within your car. Once your car is paid off, it’s still worth something. A car title loan lender offers you cash based on the current value of your car. You trade the title for a cash loan. Once the loan is paid back, the title is handed back to you. Should you fail to pay the money back or make arrangements to extend the car title loan, your car becomes the property of the lender.
During car title loans, you retain possession of your vehicle. You still make insurance payments, drive it around, and take car of any maintenance needs. This is the one big difference between car title loans and car title pawns.
