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Can I scrap a car with a title loan?
I went off-roading with some friends the other day and managed to crack the frame of my car while out. The car is a bit of a beater and isn’t worth getting repaired, but I took out a title loan on it just last week. Can I scrap a car with a title loan?
Jack Walsh · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Oh, wow—it sounds like you take offroading seriously!
Unfortunately, you cannot scrap a vehicle with a title loan because it has a
lien
, and you do not own the vehicle outright. To get rid of the car, you should do the following:- Inform the lender of the situation.
- Pay the remaining balance of your loan and then scrap the vehicle.
- Ask if the lender will repossess the vehicle and consider the debt paid.
- If you cannot pay the remaining balance, contact the lender to find an alternate solution.
Once the loan has been settled and you are shopping for a new vehicle, don’t forget to compare quotes and purchase a
car insurance
policy.If you’d rather leave the hard work of gathering quotes to someone else, use
Jerry
. The Jerry app can collect quotes from up to 50 top insurance companies, like Travelers, Nationwide, and Progressive, in seconds! They even help cancel your old policy once you’ve made your pick.View full answer
- Gregory R.
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