Are There Title Loans That Don’t Require a Car?

Borrowers searching for title loans likely know that lenders require them to either surrender their vehicles or bring them in for physical inspections as part of the process. What many don’t realize is that some of them don’t require you to show your car, and this article is going to tell you all about them!

Yes, you can find title loans that don’t require a car at all. However, these loans still need essential information about your vehicle to proceed. That’s why lenders will probably ask you to send pictures and videos of your car so they can remotely decide whether or not to lend to you.

Key Takeaways

• Some title loans do not require you to physically bring your car to the lender's location. Instead, you can provide essential information like photos, videos, and vehicle details remotely.
• To qualify for a no-car title loan, you still need a lien-free car title and must supply detailed information about your vehicle, including its make, model, year, VIN, and odometer reading. Lenders use this data to assess the vehicle's value and decide on the loan amount.

What Is a Title Loan?

A title loan is a type of secured loan where the borrower uses their vehicle title as collateral. This means that the borrower temporarily hands over the title of their car, motorcycle, or truck to the lender in exchange for a loan amount, usually based on the vehicle's value.

In most cases, the borrower keeps and uses the vehicle while repaying the loan. If the borrower fails to repay the loan on time, the lender can take possession of the vehicle.

Are There Title Loans That Don’t Require the Car?

Not all title loan lenders will require you to drive your car to the brick-and-mortar location, but the car’s title is still required to secure the loan. The most important requirement to qualify is a clear vehicle that is free from any outstanding loans or judgments against it.

Here are the most common methods for title loan lenders to secure your loan:

1. The lender will hold onto your car. Some lenders require you to surrender the vehicle, typically by parking it in a secure lot until you pay your loan off in full. 
2. The lender will require a physical inspection of your car. Meanwhile, other lenders only require you to bring the car in for a quick inspection. That physical inspection enables their representative to check the vehicle’s condition, assess its value, and determine how much money you qualify to borrow.
3. The lender will use photos and other documentation instead of an inspection. Then, some title loan providers do not require the car at all. Instead, they’ll ask you to send them information about the vehicle (e.g., picture, VIN; more on this below). They’ll use the information you provide to decide whether or not to give you a title loan.

Do All Title Loans Require an Inspection?

Not all title loans require a vehicle inspection, but many lenders do. The inspection helps lenders assess the condition and value of your car, which determines how much they can lend you.

Some lenders might skip the inspection if your car is relatively new or if you provide detailed photos and documentation. It's always best to check with the lender for their specific requirements.

What Happens During the Title Loan Vehicle Inspection?

During a title loan vehicle inspection, a lender will typically look at several aspects of your car. This includes checking the exterior for dents, scratches, and rust; inspecting the interior for wear and tear; and assessing the overall condition of the engine, tires, and other mechanical parts.

The goal is to determine the car's current market value, which will influence the loan amount you can receive. The inspection is usually quick and straightforward, often taking just 15-30 minutes.

Can I Lose My Car with a Title Loan?

Yes, you can lose your car with a title loan if you fail to repay the loan as agreed. Title loans use your car as collateral, so if you default on the loan, the lender has the right to repossess your vehicle. 

What Are the Downsides of Title Loans with No Car Required?

Naturally, there are some downsides of title loans with no car required. You must understand them carefully before deciding whether this kind of finance option is the one for you.

Here are some drawbacks of choosing a title loan that doesn’t require your car to be present at the physical location:

• Inaccurate valuation. The amount of money you qualify for a title loan depends mainly on your car’s current market value. Unfortunately, not physically inspecting the vehicle might cause a lender to perform an inaccurate valuation.
• Scam risk. Most licensed loan vendors are honest. Sadly, scammers are known to exploit borrowers by luring them online with promises of title loans that don’t require cars.
• You have to do the work. Getting a no-car title loan involves sending information to the lender instead of their representative physically inspecting your car. That means you’ll spend precious time taking photos or videos according to the lender’s requirements.
• Back-and-forth communication. These loans are done remotely, with you sending photos and videos to the lender for consideration. Unfortunately, that could involve lots of time-wasting back-and-forth communication that wouldn’t happen when getting a title loan in person with your car present.

Some borrowers don’t mind these drawbacks, while others might seek other options. Consider them carefully to decide what you should do next.

What’s Required To Get an Online Title Loan with No Store Visit?

Let’s say you’re in the market for an online title loan but want one that doesn’t involve a store visit. That’s not a problem, as many lenders provide that kind of service.

As you saw earlier, each lender might slightly differ in their processes and requirements. So, let’s start by looking at the basic requirements most title loan lenders have, regardless of whether or not they require store visits:

• Car title. As the loan name suggests, you must have a lien-free car title to qualify for a title loan. There must be no outstanding loans or judgments against it, and must also be registered in your name. 
• Car details. Whether you visit the store or not, you must provide the lender with more information about your car, including its make, model, and year. These details will help the lender determine whether you qualify and, if so, how much you might be eligible to borrow.
• Interact with a representative. Lenders have representatives who will help you through getting a title loan. So, whether you’re doing it in person, on the phone, or online, the process typically involves communicating with someone who works for the lender.
• Personal details. Last but not least, you must provide your personal information to qualify for a title loan. That includes providing valid identification like a driver’s license or state-issued ID. Some lenders may require additional documents like your proof of income or even references.

Your ability to fulfill these requirements could be enough to start the process of getting a title loan with many lenders. That’s because they can get the necessary information to decide whether to lend you money. However, lenders who offer title loans without requiring your car will still need a way to gather the necessary information. That’s why they have additional requirements, which you’ll discover in the next section below:

Auto Title Loans Without the Car Being Present

Lenders who offer no-car title loans will likely require you to gather some essential details about your car and send them to their representative.

As you can imagine, the lender must trust that you’ll be completely honest with them. Some of the information they’ll need includes the following:

• Photos and videos. These lenders typically ask you to send pictures and videos of your car’s interior and exterior. That way, they can see if your vehicle is in good condition and more accurately assess its value.
• VIN. Lenders may also ask you to send photos or videos of your Vehicle Identification Number (VIN). That will help them cross-reference and verify that you are the vehicle owner and are authorized to use it to get a title loan.
• Odometer reading. Lenders can also ask you to photograph the car’s odometer reading. Doing so tells them about your car’s mileage, which helps them figure out how much your vehicle is worth.

Be sure to browse the lender’s website for details about their requirements. Some lenders will have guides showing how they want you to record photos and videos of your car.

Online Car Title Loan vs. Alternative Loans

Title loans are an option if you have a lien-free car title and need to borrow money quickly. That’s especially true now that you can get online car title loans that offer even more convenience. Still, an essential rule in personal finance is to consider all available options before committing to one.

1. Payday Loans

The simplest way to describe a payday loan is that it’s a finance option that enables you to borrow against your next paycheck.

This type of loan is unsecured, meaning you don’t need to provide any collateral to qualify. However, you will likely need to provide valid identification and proof of income, among other things the lender may require.

Payday loans typically offer smaller amounts than other options, but their fast processing times could be helpful in an emergency.

2. Cash Advance Loan

Cash advance loans are another option you can consider in emergencies. These typically exist as an additional feature for credit cards. Simply put, you can use your ATM card to withdraw cash that has been borrowed against the available credit you have left on your card.

Unlike payday loans, which typically don’t involve credit checks, your credit score can affect how much you qualify to borrow through a cash advance loan.

3. Traditional Bank Loans

Of course, it’s essential not to forget that traditional bank loans still exist. Banks and similar financial institutions offer loans for many different uses, such as funding a car purchase, buying a home, starting a business, or for general use.

Borrowing from a bank can give you added peace of mind when dealing with a reputable and well-established financial institution. Unfortunately, the downside to that is that getting a bank loan involves a lot of paperwork, effort, and time.

For starters, banks have stricter requirements when it comes to loans. You’ll likely have to provide several documents to begin, and they’ll consider factors like your credit score, your line of work, and how much you earn. On top of that, it could take days or weeks to discover whether or not they’ll approve your loan request.

That might not be a problem to some borrowers, though it might not be helpful if you’re facing a financial emergency and need urgent cash.

4. Personal Installment Loans

Last but certainly not least, you can also get a personal loan. This finance option is another example of an unsecured loan that doesn’t require collateral but could potentially get you money quickly when you need it. These days, you can even get personal loans quickly online just by providing a few required items. 

Title loans remain popular among borrowers who own cars and need to borrow money quickly. Lenders offering these loans can differ in their requirements and processes, and some don’t require a vehicle to be surrendered or physically inspected.

Lenders offering no-car title loans will likely require you to send photographs and videos so they can remotely assess how much you qualify to borrow. So, understand their requirements before proceeding, and always consider alternative loan options, too!

Suggested Reading
Can you get a title loan using registration? 
Can your car be used as collateral for a loan?

Note: The content provided in this article is for informational purposes only. Contact your financial advisor regarding your specific financial situation.