While underwriting requirements for a car title loan can vary, your vehicle’s title is key. You may also need other documents, such as proof of identity, income, and vehicle registration. Some lenders require additional information, such as proof of residence and insurance, and may need to inspect the vehicle in person. But what happens if the car you want to use as collateral for a loan is titled in someone else’s name?

A vehicle title proves legal ownership. When you buy a car, the title transfers from the seller to you, making you the legal owner. Since a title loan requires a vehicle as collateral, the title is always the main requirement, and the lender places a lien on it until you repay the loan. While it’s good to have your registration documents, they alone won’t get you approved, as you must show proof the vehicle is paid off and titled in your name.

Getting A Title Loan If the Title Isn’t In Your Name

Lenders require that you be the vehicle’s sole owner for one simple reason: they can’t repossess a car if a non-borrower owns it. If the title is in another person’s name, you will need them to transfer the title into your name before being eligible for this type of loan.

Another way to get a title loan if the car’s title is not in your name is to add the person as a cosigner to your loan application. This means you and the vehicle’s owner are applying as co-applicants. However, cosigners also risk vehicle repossession

Title transfer rules mostly depend on where you live, so check your state’s Department of Motor Vehicles (DMV) for specific requirements.

Can You Apply With A Shared Vehicle Title?

If you have a shared vehicle with more than one owner, approval depends on state laws and lender policies. Many lenders prefer that the applicant be the sole owner of the vehicle, but you can apply together. Both owners must sign the application.

If you’re applying for a title loan with a co-owner of the vehicle, you may need to provide identification, proof of income, and the other documents the lender requires. Remember, requirements will be even tougher if you’re looking for a title loan without insurance coverage or in other situations where the lender assumes more risk.

Can I Get a Title Loan With A Pink Slip That’s Been Signed Over To Me

A signed-over title means that the previous vehicle owner signs the back of the title to transfer ownership to someone else. If your car’s pink slip was recently signed over, those details will still be verified with the DMV. Even in these cases, you can still get approved, but we’ll always need to run the vehicle through your state’s DMV portal to confirm the ownership details match.

To complete the approval process, you must show proof that the car is titled in your name and has no additional liens. The previous owner must sign over the title and include their signature, the sale date, and the purchase price, if applicable. Once the title is in your name, you can apply for a vehicle-secured loan, though the lender may require additional documents.

How To Get a Title Signed Over

If you want a car title loan but first need to transfer the vehicle’s title, both parties must complete the transfer. Depending on local regulations, you might need a bill of sale detailing the transaction, including the buyer’s and seller’s names, the sale date, purchase price, and a brief description of the vehicle.

States like California permit online title transfers. In other states, the buyer and seller may need to go to the nearest DMV to complete the transfer in person. If required, you should bring the signed title, a bill of sale, and any other required documents. Your local office may require you to complete a title transfer application, provide proof of insurance, and pay applicable fees.

Once the transfer is complete, you receive a new title listing you as the owner. At that point, you can use it as collateral for a title loan.

Secured Loans On A Gifted Vehicle

Gifted cars can qualify as collateral once transferred; however, tax exemption paperwork may apply. For example, you may need to sign an affidavit showing it is, in fact, a gift and not a way to avoid taxes. 

What If There’s Still A Loan On The Vehicle?

Any existing loan on your vehicle will delay the transfer process unless you pay it off directly or through a buyout. The lender holds a lien on the vehicle, and the certificate of title will show the lienholder’s information. When you finance a car, the lender’s information appears on the car’s title as the primary lienholder. You must own the vehicle outright, with no existing liens on your title.

Applying With Premier Title Loans

Apply online or call Premier Title Loans at 800-250-6279 to learn more about getting a vehicle-secured loan on a car that’s not in your name. We can help you take the next step toward getting a loan on a vehicle that’s not entirely yours. We can also answer questions about title loans when your name isn’t on the title.

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!