Car title loans are a quick and easy way for many people to access much-needed cash in times of financial emergency. Unlike traditional loans, auto title loans are a form of secured loan where the borrower offers the vehicle title as collateral. The lender places a lien on the title temporarily while the loan is repaid. Once the borrower completes the repayment schedule, the lien can be removed, and the title returned to the vehicle owner. The question for those who have never taken out a car title is, “How do you get your car title back?”

The Car Title Loan Process

To take out a car title loan, you visit a lender such as Embassy Loans, a company that has helped tens of thousands of customers through the years. You fill out an application and submit a few forms such as a driver’s license and the title to your vehicle. Embassy Loans verifies that you own the vehicle and that it matches the title. There is an appraisal process, where the car’s value is determined, and then the lender agrees to the loan. Once the final papers are signed, you can have access to your money. The entire process can take as little an hour.

Surrendering Your Title

For this type of loan, you have to surrender your car title to the lender. The lender places a lien on the title, and you receive and amended copy from your state’s department of motor vehicles. Embassy Loans name will appear on the title as lien holder. If you were to default on the loan, Embassy Loans would have the right to take possession of the vehicle and resell it to recover any losses.

Getting the Title Back

Obtaining a title free and clear of any lien will take some effort on your part. The first step is simply repaying the balance of your loan. There are no prepayment penalties on the loan so it is to your benefit to pay it off as quickly as possible. Once you have made the last payment, you must obtain proof that you have paid the loan in its entirety. This documentation will be needed to present to your government agency to receive a new, clear title. You complete a form, provide the necessary documentation proving that your title loan is paid, and pay a processing fee. The department of motor vehicles then removes the lien from the title, and then mails you a new title that is free and clear of any liens.