While title loans can provide quick cash in times of financial need, they also come with certain risks and limitations. One common question borrowers have about these loans’ limitations is whether they can still drive their vehicle if they have a loan. Here’s more information on these loans and their impact on the borrower’s ability to drive their vehicle:
Understanding Title Loans
When you take out a title loan, you give the lender the title to your vehicle in exchange for a loan amount, typically a fraction of your car’s current market value. The lender then places a lien on your vehicle. This means they have legal rights to repossess it if you don’t repay the loan according to the agreed-upon terms. The repayment term for title loans is relatively short, typically under a month. Depending on the borrower’s needs, some lenders may extend the repayment period to a few months. Georgia Title Loans offers loans for qualified customers in 30 minutes or less. This is done after inspecting your vehicle and determining its value. We also give our customers the option to repay their loans in full at any moment before their repayment term or contract ends.
Can You Still Drive Your Vehicle?
The ability to drive your vehicle while you have a loan depends on various factors. These include state laws, the lender’s policies, and the terms of your specific loan agreement. State laws regarding title loans can vary significantly. Some states allow borrowers to continue driving their vehicles during the loan term, while others require lenders to disable or repossess the car until the loan is repaid. Be sure to familiarize yourself with your state’s loan regulations before signing the paperwork. Lenders may also have unique policies regarding whether borrowers can drive their vehicle with a title loan. Some lenders may allow you to keep and use your vehicle as long as you make timely payments, while others may require you to surrender a spare key or install a GPS tracking device to monitor your vehicle’s location.
The terms and conditions of your loan agreement will specify whether you can continue driving your car. Read your contract carefully to understand any restrictions or requirements for using your vehicle. If you default on your loan by failing to make payments as agreed, the lender may have the right to repossess your car. In many cases, lenders prefer to refrain from repossessing because it can be a costly and time-consuming process. They would rather have the borrower repay the loan, including the principal, interest, and any fees. If you find it challenging to repay the loan and wish to avoid repossession, you can contact your lender and discuss the possibility of voluntary surrender. This involves returning the vehicle to the lender, typically at an agreed-upon location. Though you lose your car in this situation, it may help you avoid repossession fees and legal proceedings.
Apply for a Loan Today
Our team at Georgia Title Loans can assist you in filling out an application for the money you require. You can submit a loan application regardless of your financial status or credit score. Our knowledgeable loan officers will then examine the status of your car, its title, and your driver’s license. After this assessment, we will provide you with a loan offer. Contact us today to learn more about the loan types we offer and our terms and conditions.