Are you interested in taking out an online title loan, but only have the bill of sale? In most cases, you’ll need other documents besides the bill of sale to get approved. As the name of the loan says, a car title loan requires the lender to hold the actual title or pink slip physically. While a bill of sale says that you have purchased the vehicle, it doesn’t give an online title loan company much comfort or guarantee that you own the car and it’s free of any liens. There are some cases where you may not need the actual vehicle title, but it requires work on your end, and we’ll explain the options below.
What is a Bill Of Sale and How Does that Affect a Title Loan?
A bill of sale proves that you purchased a vehicle and is similar to getting a receipt for a big-ticket purchase. If you want to use that bill of sale to apply for title loans online, you must realize most lenders set forth other requirements.
Car Title Loan Lenders USA has been in business since 2013, and we’ve spoken to many customers who want to get a title loan with just their bill of sale. We often tell them it’s an excellent place to start as having that documentation ensures you purchased the vehicle. But think of everything that could go wrong without the required vehicle title. First, the person selling you the car may still have a loan with a bank or finance lender. How would you or the title loan company know if they still owed money on monthly payments or had other loan obligations or agreements? Second, what if the seller had other liens attached to the vehicle that didn’t appear on the credit score check? Perhaps they used your car as collateral with another title loan company!
Can I Get A Car Title Loan With A Bill Of Sale
Online title loan companies will let you keep driving the vehicle for the life of the loan, but you’ll still need to give them the pink slip as collateral physically. Even though the title is necessary, the bill of sale is still helpful to ensure you’re the rightful owner. The same is true for people looking to get a title with just the bill of sale. You won’t be able to get a car title with the bill of sale as that alone does not prove you’re the vehicle’s registered owner.
A legitimate bill of sale will always state the price of the car when sold and a general description of the vehicle. It will also include the VIN and license plate number showing the dates and signatures of the two parties. All this information is beneficial if you ever run into trouble getting the actual documents for a pink slip loan.
What’s Required For An Auto Title Loan After I Get The Title From My Bill Of Sale
We can think of a few other instances where you may only have the bill of sale when you apply for a title loan online. What if you lost the actual car title or had it stolen? In this case, you will still need to apply for an actual copy of your pink slip with your state’s DMV. Most states have online portals where you can do everything online and get the vehicle title sent out in a matter of days. For instance, check out this expedited title service site where you can get your documents in one day. You can count on needing documentation from the DMV with any of the largest lenders you apply with.
Consider A Surety Bond to Get a Title With A Bill Of Sale
You can sometimes apply for a title with a bill of sale if you purchase a surety bond from a licensed provider. A surety bond is often going to require all the same documents you will need for a typical vehicle title from your local DMV. The difference is that it can act in place of an actual car title as it guarantees the vehicle is owned outright and is clear of any active liens. With a surety bond from a legitimate licensed company, you can confirm your car is free of liens and apply with an online title loan company.
So, Is It Possible To Get A Car Title Loan With A Bill of Sale?
Getting approved for a title loan that doesn’t require a store visit with just a bill of sale is often not possible. The lender wants the actual car title and confirmation that you own the car outright and that it’s free of any liens and other loan obligations. One way to get a title loan without a bill of sale is to get a surety bond proving you own the vehicle outright. But most bonding companies will require the same documentation and paperwork as a DMV when you try to get a title with just the bill of sale. So, it makes sense that you would be better off working with your local DMV. You can then get a title loan with a bill of sale and a copy of your vehicle’s pink slip!