Title loans are a great way to borrow money quickly, and they’re typically approved with minimal documents required other than the car’s title. But what happens if you cannot make the required payments or have already fallen behind on your loan? In this scenario, a title loan buyout is a realistic option to find a new lender willing to reduce your rates or refinance your loan with more favorable payment terms.

A buyout can save you money, get you back on track with payments, and avoid the more drastic scenario of your lender repossessing the car and selling it at an auction!

How Does A Title Loan Buyout Work

A title loan buyout means you’re working with a new lender that agrees to refinance the existing title loan. The desired outcome with any buyout is to get a new loan with better interest rates and extend the payment term to a more manageable level. Some customers will look to lower the monthly payments on their loan

if they can no longer afford the amount due. However, reducing the monthly payment can make it more challenging to repay the loan as less money each month will go towards interest.

A title loan buyout leaves you with a fresh start with a loan on a pink slip, and in most instances, the new financing company will buy out your original lender. With these buyouts, you can save a considerable amount of money, but they’re also tough to get approved for, as some companies are hesitant to offer loans when you’re already behind on the payments.

Apply with Premier Title Loans For A Loan Buyout

You’ll be pleased to know that Premier Title Loans offers buyouts on most eligible car title loans. That means we can get you a new payoff term and possibly reduce the interest rate on your current loan. All we require is proof and documentation of your current

loan. That can be with the existing loan documents; we’ll need your lender’s contact information.

We’ll contact them and attempt to refinance or buy out that loan, and in turn, you’ll get a fresh start with our lending offer. Anyone who applies with us using a typical title loan or even a salvage title loan will be considered. Still, you have a better chance of approval if your vehicle has not been repossessed and you are current on the monthly payments.

Benefits Of Buying Out A Title Loan

Improved Interest Rates – It doesn’t make sense to continue paying a title loan if you can get that same loan at a lower rate. Most loan buyouts result in significant interest rate reductions, which means an expedited repayment term.

Less Financial Stress – Let’s face it: defaulting on a title loan can lead to increased financial stress, where you may lose your vehicle to a repossession. Having a loan bought out alleviates the financial burden, and you can hopefully avoid additional late fees and interest charges.

Increase Your Credit Score – Most title loan companies report your credit score to the credit bureaus, and if you fall behind on the payment, your FICO score will suffer. When a lender buys out your loan, that gets you back on track with the payments, and you can improve your credit score.

Quicker Payoff Terms – No one wants to make payments on a loan if there’s a faster payoff available. Premier Title Loans can help by buying out your loan to get a faster repayment term. Instead of paying off your bad credit title loan in 12 months, a buyout can reduce that term to 6 months or less!

What To Look For With A Buyout On Your Car Title Loan

Any time you consider refinancing your loan, you need to think if buying out an existing loan is worth your time. Will you save a substantial amount of money with a buyout, and can you end up paying off your loan earlier than you initially expected? If either answer is yes, it makes sense to shop around and get a few quotes to see if you can save money by refinancing a title loan.

You also want to look out for companies that claim they can buy out your car title loan if you’ve already defaulted or had the vehicle repossessed. In this scenario, it’s challenging for any lender to approve a buyout as they would essentially be taking on a loan obligation already in default. It’s unlikely that a company offering a car title loan near me would pay off the existing loan, only to be left with a situation where you can no longer make the payments on your new lending terms.

New Payment Terms And Interest Rates With A Premier Title Loans Buyout

Applying for a title loan buyout with Premier Title Loans is a way to reduce the interest or lower the payoff term. Contact us at 800-250-6279 if you’re unsatisfied with your current APR or want to see if we can help you pay off your loan quicker! We’ll get you a lending estimate in minutes to tell you if a buyout is right for you!

Jessica Chase

Jessica has been working in the title loan lending industry since 2012. Before that, she managed a team of customer service representatives for one of the largest payday loan companies in the US. Since coming to Premier Title Loans, she’s overseen our sales and marketing department and looks forward to educating consumers on their different financing options. Jessica is always open to feedback and questions related to short term loans!