What do I do if I can’t repay my Title Loan?

Life is unpredictable and sometimes the unexpected can derail even the best plans. When you get a Title Loan, you borrow money from a lender using your vehicle as collateral. The lender usually puts their lien on the vehicle, and if you default on the loan they can and often will repossess the vehicle.  If you have a Title Loan and are having trouble making the payments, or know you are going to miss a payment(s), this is what we suggest to our customers:

Contact the Lender:

Contact the lender and let them know your situation. This is extremely important. Avoiding the lender will only make things worse. Contact them as soon as you know you have a problem.  Try to work out a solution that does not involve defaulting on the loan.  The lender is much more likely to be flexible if you communicate with them.

Don’t wait until Repossession:

Don’t wait until the lender repossess your vehicle.  Any flexible the lender may have had is likely reduced significantly after repossession.  Additionally, if you wait until after the lender repossesses your vehicle you will likely be liable for the repossession costs when you redeem your vehicle. If you don’t redeem your vehicle, it will be sold and the repossession costs will likely be deducted from the sale price.

Think about Selling the Car:

Consider selling your vehicle. If you have an expensive vehicle consider selling it and purchasing a less expensive one. Selling the vehicle yourself is often a better option than waiting until the lender repossesses and sells the vehicle for you.  You will need to let the lender know you plan on selling the vehicle; and the loan balance will need to be paid before they will release the lien.  Most lenders will work with you to facilitate the sale if you communicate with them.

Use the Car to make money:

Consider using your vehicle to generate income to make your title loan payments.  You can use your vehicle to make money by driving for Uber, Lyft, or a number of other delivery services.

Don’t hide the car:

Do not stop paying and try to hide your vehicle. This may work for a short period of time, but in the long run it will end up costing you more.  Eventually the repossession company will find the vehicle. You will most likely be liable for the repossession costs and the interest that accrued during the time you were hiding the vehicle.


Communication is essential to maintaining a positive relationship with your lender.  Contact your lender as soon as you know you will have a problem making a payment.