Are you currently working with a lender that gave you a car title loan? Are you looking for more information about getting more cash using that exact vehicle pink slip? If so, you’re probably looking for a 2nd lien title loan. While it’s not impossible, getting online title loans is challenging if your car’s title is already being used as collateral with another lender.

 

How 2nd Lien Title Loans Work

With 2nd lien title loans, a borrower takes out a 2nd title loan while there’s another secured loan outstanding. The 2nd lien is placed on the borrower’s car and the lender agrees to hold the title as collateral for the loan. In an ideal situation, you would take place multiple liens on your vehicle, but unfortunately, there are a few reasons why this can be difficult.

Other types of 2nd lien title loans allow you to pay off the original lender while you’re still allowed to add a second lien onto the title. This is often referred to as a title loan buyout. In this situation, your prospective lender will buy out the original loan and offer you new lending terms and hopefully a lower interest rate.

 

Risks Associated With Getting A 2nd Lien Title Loan

There are a lot of risks involved with a second lien title loan, mostly because you’re taking on more debt! Also, because 2nd liens are riskier for lenders, the interest rates are much higher than those on first liens. This means that you’ll end up paying more in interest over the life of the loan, which can make it challenging to repay.

If you default on your 2nd lien title loan, the lender may try to repossess your car. This is because they have another lien on your vehicle, which means they have a right to take back the collateral if you don’t repay the loan. This can lead to a situation where you no longer have a vehicle and can’t get to and from work. Another potential problem can be associated with the after-effects of a default. For instance, your credit score will reflect that you fell behind and defaulted with the lender and you can even face a lawsuit over the remaining money owed after the vehicle is sold at auction.

A customer with his keys after getting a second lien loan.

 

Benefits Of A Second Car Title Loan

Even though a second title loan is hard to get and not something we even recommend, there may be some benefits for you if you can get one. A 2nd lien car title loan can give you the money you need quickly and with no hassle. The process is usually straightforward, with funding in less than 24 hours. Another benefit is that 2nd lien title loans can often be easier to qualify for than bad credit title loans. The lender has the collateral they need to secure the loan, so they’re less worried about your ability to repay.

 

Is It Worth It To Try And Get A 2nd Lien Title Loan?

While there are some benefits from 2nd lien auto title loans, we also know of severe risks, and you need to make an informed decision anytime you’re considering a standard secured loan, especially when it’s a 2nd lien loan. To determine if you genuinely need the cash and can’t qualify for other less risky loans then you should consider some key questions.:

How much money do you need, and how quickly do you need the funds?
How much can you afford to pay back on a 2nd loan?
What happens if you default on the loan and your vehicle is repossessed?

 

If you feel comfortable with the answer to the three questions mentioned above, then a 2nd lien may be suitable for you. Here are the following steps:

1. Find a reputable lender who offers 2nd lien title loans. Some local equity lenders in FL offer these types of loans in addition to their typical title loans.
2. Apply for a loan online with Florida Title Loans. We’ll process your application and send your loan request to a local lender.
3. Sign the loan docs after your application is underwritten and you’ve completed the inspection. A 2nd lien title loan typically requires more documents and takes longer to underwrite and fund. But if everything checks out, you can have cash for your vehicle’s equity in 24 hours.

 

What To Do If You Can’t Get A 2nd Lien Title Loan

Additional options exist if you can’t be approved for a 2nd lien title loan. One option is to try and refinance your existing title loan with another lender that offers a lower interest rate. This can be not easy, and it’s likely not an option if you’re behind on the payments, but it’s possible if you can find a company offering more competitive rates.

These loans can be challenging to obtain, and most title loan companies in Florida will not offer these loans on your title. However, some options may be available if you still have equity in your vehicle. Call 888-986-8505 or apply online with Florida Title Loans to qualify for a second lien title loan!

Florida Title Loans customer driving with a 2nd lien title loan.