How Does a Title Loan Buyout Work?
Are you unhappy with your loan terms and are wondering how the process of a title loan buyout works? Well, essentially, a car title loan buyout is when one company sells a title loan to another company. The borrower doesn’t usually get involved in this kind of transaction, and if you want to get out of an existing loan, you should consider other options, such as title loan refinancing. Refinancing your car title loan means taking out a new loan to replace the existing one in order to receive different loan terms.
While the terms “title loan refinancing” and “title loan buyout” are often used interchangeably online, they are not the same! If you’re thinking about refinancing your car title loan, simply complete a quick online questionnaire or call 855-422-7402 to speak with a ChoiceCash title loan agent today.1
Who Buys Out Title Loans?
If you’re searching for a way to get out of your loan, then title loan buyout companies may feel like the answer. Title loan buyouts – when used as a synonym for a loan refinance – involve a lender paying off your existing loan and providing you with a new agreement to look over and sign. In some cases, a title loan buyout can work in your favor because you may be able to secure a lower interest rate and save money over the life of your loan.
Getting a new title loan also means different loan terms that can be more manageable! If your title loan payments become more affordable, then you can focus on fixing your finances and keeping up with your new payments.
Before signing a new loan agreement, go through the terms and conditions of the loan. Be aware of items like the interest rate of the loan and the amount of time you will have to pay back the loan. A title loan buyout is only beneficial when your interest rate and loan terms are advantageous compared to your current interest rate and loan terms.
Can You Refuse a Title Loan Buyout?
As mentioned above, a title loan buyout is not a decision that you are directly involved in as the borrower. Since this transaction is essentially a business arrangement, you won’t be able to refuse a title loan buyout. However, that does not mean you are out of options if you are unhappy with your loan terms or your current title lender. As a title loan borrower, you can try to refinance your existing loan if you are searching for new loan terms or a different interest rate. If you want to refinance your title loan, keep in mind that your loan must be in good standing. When your loan is in good standing, that means that you are up to date on your payments and your loan is not currently in default! Not all title lenders offer refinancing options, so it is important to find a lender that is willing to work with you.
Explore your refinancing options today through ChoiceCash title loans serviced by LoanMart! Call the toll-free number to get in touch with a loan officer and learn more about the refinancing process. ChoiceCash title loan agents are available for extended hours six days a week to take your call.
Title Loan Buyout vs. Refinancing
Understanding the differences between a title loan buyout and a title loan refinance is important if you want to get different loan terms. Explore a title loan buyout vs. refinancing below:
Title Loan Buyout
In many cases, a title loan buyout will not impact the borrower’s current interest rate, repayment schedule, or loan terms. As previously mentioned, a title loan buyout does not involve the borrower directly and is strictly a business arrangement between two companies.
Title Loan Refinancing
Comparatively, you are directly involved in the refinancing process for your title loan! If your existing title loan payments have become unmanageable, you can try to refinance your current title loan to hopefully access better loan terms and a lower interest rate.
Remember that a buyout is not the same as refinancing your title loan. If you are unhappy with your existing loan terms or the customer service you are experiencing through your lender, you can discover your refinancing options today by calling 855-422-7402!
How Can I Apply for a Title Loan Buyout?
Applying for a loan does not have to be complicated! Check out this step-by-step guide that you can easily follow:
Compare Your Options
Websites like the Better Business Bureau or Trustpilot can be a great place to research a title loan company or lender that specializes in title loan buyouts, as they usually have unbiased customer reviews. Keep in mind that it will be very difficult to find a business with only positive reviews, but you should try to find a title loan buyout company or lender that has mostly positive feedback from customers.
Complete a Prequalification Form
After you’ve found a suitable lender or title loan company, the next step is to fill out a prequalification form online or in person. Applying for a loan online can often be faster and more efficient than applying in person! If you decide to apply online, you must provide all the necessary information about yourself and your vehicle when completing the online questionnaire.
You may also need to include relevant information about your existing loan, such as the current balance and the name of the original lender. If you are prequalified, you’ll be asked to submit several documents, including the title of your car and a valid, government-issued photo ID. You won’t be able to get a loan without an ID, so make sure that you have a valid driver’s license, U.S. passport, or another qualifying document!
Sign Your Loan Agreement
The last step is to review and sign your new loan agreement if you are fully approved!
If you are unhappy with your current title loan terms, then a new title loan may be the answer. You can try to apply for title loan refinancing today through ChoiceCash title loans serviced by LoanMart! Complete a short pre-approval form online or call 855-422-7402 to get started over the phone.1
Frequently Asked Questions About Car Title Loan Buyouts
Want to learn more about how title loan buyouts work? Below are some of the most frequently asked questions about this type of vehicle-secured loan.
Can I Get a Title Loan to Pay Off Another Title Loan?
Yes, a title loan refinance or a title loan buyout can help you get a new loan to pay off your existing loan! Hopefully, the new car title loan will have better loan terms and conditions than your current one.1
What Happens to My Current Loan Through a Title Loan Buyout?
After the buyout is completed, your previous title loan will be paid off. If your current loan is paid off through a refinance, you will get a new loan agreement with updated loan terms, including a new interest rate and payment.1
Can You Negotiate a Title Loan Payoff?
If you aren’t happy with your current loan terms, you can try to pay the loan in full or negotiate with your car title lender to get a loan modification. A loan modification is also known as a rewrite and it typically means the loan is re-amortized to potentially obtain a payment that is much more manageable for the borrower.
Why Choose ChoiceCash Title Loans for a Title Loan Buyout?
If you are eligible for a ChoiceCash title loan serviced by LoanMart, you can take advantage of several benefits, including:1
- Competitive Interest Rates
- Keep Driving Your Car
- Payments May Decrease2
- Quality Customer Service
- Zero Hidden Fees or Prepayment Penalties
One of the main reasons why borrowers search for title loan buyouts online is because they are unhappy with their current interest rates and loan terms. If you qualify for a ChoiceCash title loan refinance, you can expect convenient loan terms and competitive rates! Don’t wait to find out if you are eligible for the title loan relief that you need. Fill out a prequalification form online or call the toll-free number to get started!1