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Fast Title Lenders > Can you get a Title Loan with a Lien?

Can you get a Title Loan with a Lien?

Title loan with Lien

Title loans are a way to borrow money fast using the vehicle as collateral for the loan. One of the key requirements for getting a title loan is a lien free title.

So, can you get a title loan with a lien? Yes, depending on the vehicle value and amount required to satisfy the lien. There are also different types of liens.

Type of Liens on Car Titles

Before we can figure out if we can get a title loan with a lien we need to understand the different types of liens and why they exist. For cars there are generally three types of common liens:

  1. Lenders Lien
  2. Mechanics Lien
  3. Storage Lien

Lenders Lien

The lien that most car owners are familiar with is the type a lender adds to the title when making a loan on the vehicle. This lien can be from several different types of transactions including:

  1. Title Loan
  2. New Car Loan
  3. Used Car Loan
  4. Vehicle Secured Loan

When the borrower uses the vehicle as collateral for the loan it is a secured loan. This means the lender is taking a security interest in your vehicle by placing a lien on the title. Should you fail to repay the loan the lender can repossess and sell the vehicle to cover their costs.

Mechanics Lien

Auto mechanics perform repairs and/or maintenance on a vehicle prior to getting paid for the work. Typically you drop you car off and, when the repair is done, pay for the work and pick up the vehicle.

Should something happen and you are unable to pay the mechanic for their work, they are permitted to add a mechanics lien to your title. This allows them to recover the cost the the repair when you sell the vehicle.

Storage Lien

Sometimes a vehicle is towed and stored for a period of time. This can be a result of numerous reason not limited to:

  1. Parking violations
  2. Accidents
  3. Other

The towing company picks up the vehicle and takes it to their impound lot. If you fail to go pay for an pick up the car the company can put a storage lien on the vehicle to recover their costs.

How to get a Title Loan with a Lien

Getting a title loan with a lien is not overly difficult. The question is what type of title loan you can qualify for. Because second lien title loans are not common, in many cases a title loan refinance may be necessary. You can also consider a title loan buyout.

Getting a title loan with lien
Refinancing a title loan can be a solution for getting title loan with a lien.

Follow the next three steps:

Getting a Title Loan with a Lien Step 1

The first thing you will need to do to get a title loan with a lien is figure out what type of lien is on the title. If it is a lenders lien from an existing loan then getting a title loan (or refinance) should be possible.

If the lien is a storage or mechanics lien these will most likely need to be satisfied before getting the title loan.

Getting a Title Loan with a Lien Step 2

Next, you will want to determine the vehicle value, and the amount to satisfy the existing lien. This will dictate how much you will be able to borrow.

Getting a Title Loan with a Lien Step 3

Now that you know what type of lien you have and how much you can borrow the next step is to apply for the title loan with a lien with a title loan refinance company that offers these types of loans. From there complete the process as you would for any other title loan.


Getting a title loan with a lien is possible assuming it is a lien as a result of an existing loan and the loan balance is less than 50% of your vehicle’s value.

To get the title loan simply apply with the title loan company you want to do business with and follow the rest of their process. As with any title loan always read the loan agreement in full before signing and make sure you understand all terms and conditions.

Can you get a Title Loan while still making Payments?

Yes, as long as the equity in the vehicle will support the loan. For example, if you just purchased a car with a small down payment and do not have much equity, then getting a title loan while making payments will be difficult. However, if you are almost done with payments, or put a large down payment on the car, then it should be easy to move forward.

What is a Title Loan Buyout?

A title loan buyout is where one company pays off your title loan and issues another one. It is very similar to a title loan refinance. This is an option if you rushed into the first loan without fully considering the costs. Finding a lower cost lender is possible.