Title loans are a great way to borrow money quickly, and they’re typically approved with minimal documents required other than the car’s title. But what happens if you cannot make the required payments or have already fallen behind on your loan? Sure, you may consider refinancing your loan, but what if you don’t want to deal with starting the application process from scratch? In this scenario, a title loan buyout is a realistic option to find a new lender willing to reduce your rates or refinance your loan with more favorable payment terms.

Title loan buyouts are not as common as they used to be, as most lenders are unwilling to take over or “assume” a loan that’s at risk of default. However, for the right person, a buyout can save you money and get you back on track with payments, and avoid the more drastic scenario of your lender repossessing the car and selling it at an auction!

How Does A Title Loan Buyout Work

A title loan buyout means you’re working with a new lender that agrees to refinance the existing title loan. The desired outcome with any buyout is to get a new loan with better interest rates and extend the payment term to a more manageable level. Some customers will look to lower the monthly payments on their loan

if they can no longer afford the amount due. However, reducing the monthly payment can make it more challenging to repay the loan, as less money each month will go towards interest.

A title loan buyout leaves you with a fresh start with a loan on a pink slip, and in most instances, the new financing company will buy out your original lender. With these buyouts, you can save a considerable amount of money, but they’re also tough to get approved for, as some companies are hesitant to offer loans when you’re already behind on the payments.

How Is A Title Loan Buyout Different From Refinancing

Many of our customers think a title loan buyout is the same as title loan refinance, and we can’t blame them, as they’re both ways to change the terms on a loan. However, a buyout and refinance differ when it comes to who initiates the loan offer and how these loan terms are changed.

With a title loan buyout, there’s no initial involvement from the applicants. All transactions occur between the lenders. Your original lender sells the loan to another, and you start making payments to the new company that’s listed on your car’s title. Sometimes the interest rates, payoff terms, and other lending details stay the same. In other cases, your new lender may work with you and reduce the interest rates or make the payoff terms more flexible.

With a title loan refinance, you start the process to pay down the balance on your existing loan and get new payoff terms. Refinancing can be done with your existing title loan company or with a new lender, and there’s no risk other than your time to see if you can get a reduced monthly payment or lower the interest rates on your loan.

Apply with Premier Title Loans For A Loan Buyout

You’ll be pleased to know that Premier Title Loans offers buyouts on most eligible car title loans. That means we can get you a new payoff term and possibly reduce the interest rate on your current loan. All we require is proof and documentation of your current

loan. That can be with the existing loan documents; we’ll need your lender’s contact information.

We’ll contact them and attempt to buy out that loan, and in turn, you’ll get a fresh start with our lending offer. Anyone who applies with us using a typical title loan or even a salvage title loan will be considered. Still, you have a better chance of approval if your vehicle has not been repossessed and you are current on the monthly payments.

Benefits Of Buying Out A Title Loan

Improved Interest Rates – It doesn’t make sense to continue paying a title loan if you can get that same loan at a lower rate. Most loan buyouts result in significant interest rate reductions, which means an expedited repayment term.

Less Financial Stress – Let’s face it: defaulting on a title loan can lead to increased financial stress, where you may lose your vehicle to a repossession. Having a loan bought out alleviates the financial burden, and you can hopefully avoid additional late fees and interest charges.

Increase Your Credit Score – Most title loan companies report your credit score to the credit bureaus, and if you fall behind on the payment, your FICO score will suffer. When a lender buys out your loan, that gets you back on track with the payments, and you can improve your credit score.

Quicker Payoff Terms – No one wants to make payments on a loan if there’s a faster payoff available. Premier Title Loans can help by buying out your loan to get a faster repayment term. Instead of paying off your bad credit title loan in 12 months, a buyout can reduce that term to 6 months or less!

What To Look For With A Buyout On Your Car Title Loan

Any time you consider refinancing your loan, you need to think about whether buying out an existing loan is worth your time. Will you save a substantial amount of money with a buyout, and can you pay off your loan earlier than you initially expected? If either answer is yes, it makes sense to shop around and get a few quotes to see if you can save money by refinancing a title loan.

You also want to look out for companies that claim they can buy out your car title loan if you’ve already defaulted or had the vehicle repossessed. In this scenario, it’s challenging for any lender to approve a buyout, as they would essentially be taking on a loan obligation already in default. It’s unlikely that a company offering a car title loan would pay off the existing loan, only to be left with a situation where you can no longer make the payments on your new lending terms.

New Payment Terms And Interest Rates With A Premier Title Loans Buyout

Applying for a title loan buyout with Premier Title Loans is a way to reduce the interest or lower the payoff term. Contact us at 800-250-6279 if you’re unsatisfied with your current APR or want to see if we can help you pay off your loan quicker! We’ll get you a lending estimate in minutes to tell you if a buyout is right for you!

Jessica Chase

Jessica has been working in the title loan lending industry since 2012. Before that, she managed a team of customer service representatives for one of the largest payday loan companies in the US. Since coming to Premier Title Loans, she’s overseen our sales and marketing department and looks forward to educating consumers on their different financing options. Jessica is always open to feedback and questions related to short term loans!