The short answer to this commonly asked question is, “No, you can’t”. To apply for a car title loan you need to have 100 percent ownership of the vehicle.
Every lender will expect and require the title of the vehicle to be in your name. However, there are several situations in which this might not be the case.
For example, your name may not be on the car title if:
- You inherited the car
- When you are paying off the loan
- You received the car as a gift
- Your name is on the car title but so is someone else’s name
Applying for an online title loan when the pink slip is not assigned to you will be impossible, but you do have options. One of them is transferring the car title to your own name.
Transfer the vehicle title to your name
To transfer the vehicle title to your name, the designated owner of the vehicle and the recipient must complete a Vehicle Title Transfer at the DMV (Department of Motor Vehicles). Depending on your situation, the following might apply:
For selling or buying vehicles – Most states require a Vehicle Bill of Sale document when selling and buying a car. The seller has to present the latest odometer disclosure at the time of sale and both buyer and seller have to sign the document. The buyer then has to make an appointment at their state’s DMV to transfer the title to their name. Prepare all the above mentioned documents and keep in mind you may have to pay a transfer fee.
If the car is inherited from a family member – You may need to consult a probate attorney to get some legal advice. You will need to provide a DMV with proof of your relationship to the owner, a signed title and completed current odometer disclosure, a Statement of Facts and all supporting documents such as a death certificate and the will. There will be a transfer fee to pay as well. Make sure to update the vehicle insurance policy.
If you have received a car as a gift – The process for transferring ownership is similar to buying or selling a car. The giver must provide the odometer disclosure on the title with both parties signing on the document. You then must go to the DMV and apply for a new title and pay the transfer fee as required.
What if you don’t want to change the car title name?
If you find yourself in this situation, the person who holds the car title will need to apply for the car title loan themselves. You may want to compare different companies by searching a directory of title lenders to find the best rates. You can still make personal arrangements with the owner of the pink slip about how to settle the loan if you are driving the car. However, legally the car title owner is the one obligated to pay off the loan instead of you. Make sure to transfer the vehicle title to your name before you opt for car title loans. A local title lender might be able to assist you with this, so check to see what they can do in your situation.