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Can I junk a car with a title loan?
Well, it finally happened; my car of 12 years no longer wants to start, and the repairs cost more than the car is worth. I’m prepared to junk the car, but I took a title loan out on the vehicle just a few weeks ago. Can I still bring the car to the salvage yard even though it has a title loan?
Jack Walsh · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Owning a car for 12 years is impressive, and it sounds like it had a good life! Unfortunately, before you can part ways at the salvage yard, you must settle your loan debt.
Having a title loan on the car means you do not fully own the vehicle and cannot junk it until you are the sole owner or have permission from your lender. To get rid of the car, you can:
- Pay off the remainder of the loan.
- See if the lender will take possession of the car and consider your debt settled.
- Ask the lender for permission to sell the vehicle and use the payment to settle your debt.
Policies differ by lender, so if you’re considering using a method other than directly paying off the loan, reach out to them to better understand your options.
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