Can i still drive my car while i have a car title loan

Car title loans have become a popular option for people seeking quick access to cash, especially in emergencies or when facing unexpected expenses. One of the most common questions about car title loans is whether you can still drive your vehicle while you have an active loan. The answer is generally yes, but it’s essential to understand the nuances and responsibilities associated with driving a vehicle under these circumstances.

What Makes Car Title Loans So Convenient?

Driving your car while having a title loan

A car title loan is a form of secured borrowing where you use the title of your vehicle as collateral to obtain a loan from a lender. The loan amount is determined based on the value of your vehicle and your ability to repay the loan, and it’s typically intended to be repaid within a short period, often ranging from a few weeks to a few months. Car title loans are known for their quick approval processes and accessibility, even for borrowers with less-than-perfect credit histories.

Can I Retain Possession and Usage of My Vehicle While I’m Paying Off the Loan?

Yes, you can continue driving your vehicle while you have an active loan. Unlike pawning an item, where you typically surrender the item until the loan is repaid, car title loans are designed to allow you to retain possession and use of your vehicle for the duration of the loan term. This is a significant advantage, as it allows you to maintain your daily routines, commute to work, and meet your transportation needs without interruption.

Why Do Lenders Allow You to Keep Your Vehicle?

The reason you can still drive your vehicle with a car title loan lies in the collateral you’ve provided—the vehicle’s title. While the lender holds a lien on the title, indicating their legal interest in the vehicle until the loan is repaid, this doesn’t mean they physically take possession of the car. The collateral serves as security for the lender; if you default on the loan—by not making payments according to the agreed terms—the lender can take steps to repossess and sell the vehicle to recover the outstanding loan amount.

What Should I Know About Auto Title Loans Before I Apply?

While you can maintain possession of your vehicle, there are crucial responsibilities and considerations you should keep in mind:

Regular payments.

You must make regular and timely payments as agreed upon in the loan contract. Failure to do so can lead to default, which in turn can result in the lender initiating the repossession process.


If you encounter difficulties in making payments or anticipate any issues, communicate with your lender as early as possible. Some lenders might be willing to work with you to find a solution and avoid repossession.

Vehicle’s condition.

The lender’s interest in the collateral extends to its condition as well. In many cases, the lender will include clauses in the loan agreement regarding the maintenance and upkeep of the vehicle.

Insurance requirements.

While driving your vehicle with a car title loan, you’ll likely be required to maintain comprehensive and collision insurance coverage. The lender wants to ensure that if an accident were to occur, the vehicle’s value would still be protected.

Before signing any loan agreement, thoroughly understand the terms, including the repayment schedule, interest rates, and consequences of default. Clarify any doubts you might have before committing.

Find Out if You Qualify

At Fast Money Car Title Loans, we can connect you with a local reputable lender who can provide a fair car title loan based on the value of your vehicle and other factors. We take great care in vetting the lenders in our network to ensure you work with one that offers you the loan you need, with reasonable terms and payment options.

To learn if you qualify for a car title loan, fill out the form on this page to get started. Our customer service staff will respond promptly to answer any questions and connect you with lenders that can help you secure the loan you need, as quickly as possible.