Can You Use an Electric or Hybrid Car to Get a Title Loan?

#Vanlife can be for everyone in turbulent times

So you want to be green, cut on your carbon footprint and go electric? Want to finance one car against the cost of another? This is an area called title loans. A title loan is a kind of short-term loan that uses the borrower’s car as collateral to secure the debt. The most common reason that someone will apply for a title loan is if they do not qualify for any other kind of financing, which makes sense if you don’t have the responsibility of owning a lot of assets, except for maybe a tiny home. But think about what’s happening with Covid now? Maybe you want to buy an RV and take a long ride out of town for a few months or convert a van into a #vanlife experience in nature. A title loan? Your friend. 

To get a title loan, you’ll need to search terms like Titlelo for title loan places near your location. Next, you will need to bring your car with you along with all of the necessary paperwork to the lender where you are seeking your loan. 

Some title loan applications are even available online, but the lender will still need to check out your vehicle and make sure it is in good condition and the paperwork is complete.

Elon Musk Tesla - Israel

Hybrid or full electric?

There are no restrictions on what type of car can be used for a title loan, meaning you will be able to apply with the title of an electric or hybrid car or even a long-haul RV as Treehugger reports as long as it is in good condition. Electric car companies like Tesla are becoming more popular and these cars are eligible to use for a title loan. And as we mentioned: as temporary homes

Loan limits are typically anywhere from 25{ad6ec37a2bd3ecfa3332b96b9ac48dbf74f925fa7e3098eb9d9871fb3d85bcba} to 50{ad6ec37a2bd3ecfa3332b96b9ac48dbf74f925fa7e3098eb9d9871fb3d85bcba} of the value of your car. You will need to repay the amount of the loan plus interest within the term period. This will usually be about 30 days. 

Benefits of a Title Loan

The number one benefit of a title loan is the ability to get cash instantly. Your credit score doesn’t matter. Your credit score won’t even be checked. This is beneficial if you can’t qualify for a loan anywhere else but you need cash now.

Even though your loan is secured by your car, you will still be able to drive your car as you are paying off the loan. You don’t have to worry about being left without a car unless you don’t pay the loan.

The application for a title loan is really quick and simple. You will be able to fill out your paperwork and have your money in a few minutes compared to sitting in the bank all day. 


The biggest drawback of title loans is the fact that you can lose your car if you default

Loan terms are usually only 30 to 60 days, but in some cases, lenders are willing to extend the terms. If your loan extends, so will the amount of interest paid.

The second-largest drawback is the interest rates of title loans. These are considered such a high risk, the interest can be 20{ad6ec37a2bd3ecfa3332b96b9ac48dbf74f925fa7e3098eb9d9871fb3d85bcba} or even more depending on where you live. If you take a $1,000 loan, you’ll have to pay $1,200 (or more) plus any additional fees within the loan term.

Cars that Qualify for a Title Loan

There is no list out there that has the make and model of all types of cars eligible for title loans. Every lender will have a certain method for valuing a vehicle, but every vehicle qualifies for a loan. 

This means you will be able to use your electric or hybrid car as long as it meets the lender’s requirements. 

But this article will help you gain a better understanding of what qualifications lenders look for when they will extend a title loan.

The main things that lenders look for are the value and condition of the car. 

Important: You will also need to own the car outright or have very few payments left on your car for it to qualify.

Value and Condition

As stated above, each lender will have their own way of evaluating your car. If you are seeking a title loan online, the lender will require that you send pictures of your car to determine the condition. 

You will need to make sure your car is clean to get the best appraisal. Also, it is wise to make sure to take pictures that are as clear as possible. The age of the car and the number of miles on the engine can affect the amount of the loan you will be able to qualify for. 

Cars depreciate incredibly quickly, and the older a vehicle is, the less it will be worth.


The title status is also a huge factor when being considered for a title loan. In most cases, your car will need to be completely paid off with no money owed on it.

Your vehicle must have equity if it is not paid off. Equity is the difference between the amount owed on your car to the car’s current value. In some cases, you can have a decent amount of equity on your car with only a few payments left to pay. But, this last point all depends on the title loan lender.

Your title should also be clear of any accidents that could damage the value of the vehicle. A car that has been in an accident will usually be worth less than a car that has not been in an accident.

This one is a given, but your name must be on the car’s title to get a title loan. If there is another name on the title of your car, there are some things you will need to check on before you can use it for a title loan.

Two other scenarios to know:

  • If your name “AND” another name are on the title, you might still be considered for a title loan. You will need the other person to submit their documents as well, and you won’t be able to qualify without them.
  • If your name “OR” another name is on the title, the other person will not be required to submit any information or documentation for you to qualify for a title loan.

Documents Needed

If you want to get a title loan, you will need to make sure that you have all of the required documents needed to apply. These documents might include: 

  • The original title that shows your ownership, your government ID that shows that matches the name on the title, and proof of residency.
  • You will also be required to provide an up-to-date registration for the vehicle, proof of insurance, and all working copies of the keys. 
  • You will need to provide recent pay stubs that prove your ability to pay the loan, and at least two valid references.
  • In some cases, the lender might require that you attach a GPS tracker to the car. This will give them security, as they will be able to find your car if you default. Some of these devices even allow the lender to access and disable the car remotely.

You do not need to have good credit or proof of your credit score to get a title loan. Most lenders won’t even check your credit at all because the loan depends on the resale value of the car. 

Rates and Fees

You can expect to pay more for a title loan than you would for a loan from a bank. Interest rates will vary depending on the lender, but some states do not have a cap on interest rates.

In these states, the interest rate is usually 25{ad6ec37a2bd3ecfa3332b96b9ac48dbf74f925fa7e3098eb9d9871fb3d85bcba} a month or 300{ad6ec37a2bd3ecfa3332b96b9ac48dbf74f925fa7e3098eb9d9871fb3d85bcba} per year.

Most lenders will also charge a lien fee. If you live in a state where title loans aren’t regulated, you may also be charged origination fees, document fees, key fees, processing fees, or just about any other fee that they can think of to throw in there.

Will a Title Loan Affect Your Credit?

No, a title loan will not do anything to help or hurt your credit. Payments are not reported to any of the credit bureaus. If you don’t pay, your account won’t get sent to a collections agency. They will repossess your car to cover the debt owed to them.


You can use any kind of car for a title loan, even electric cars, and hybrids, as long as your car is paid off or has only a few payments left. It is important to take into consideration the high cost and fees that are associated with a title loan.

This can be a good option for you if you have bad credit and need emergency cash, but only consider it if you will have the money to pay it off. 

You should be sure that you can pay the loan back within the time frame or you might lose your car. 


The post Can You Use an Electric or Hybrid Car to Get a Title Loan? appeared first on Green Prophet.