Do you want to get a title loan but only have a bill of sale? In most cases you’ll need other documents besides the bill of sale to get approved for a title loan. As the name of the loan says, a title loan actually requires the lender the physically hold the actual title or pink slip. While a bill of sale says that you have in fact purchased the vehicle, it doesn’t give a title loan company much comfort or guarantee that you actually own the vehicle 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?
With a bill of sale, you have proof that you purchased the vehicle; similar to if you bought a high ticket item at the store and got a receipt. In most states, you’re required to get a bill of sale when you purchased a vehicle both in person and from a registered dealer. Know if you want to use that bill of sale to qualify for an online title loan, you must realize there are other requirements set forth by most lenders.
Car Title Loan Lenders USA has been in business since 2013 and we’ve spoken to many customers who wanted to get a title loan with just their bill of sale. We often tell them it’s a good place to start as having that documentation ensures you actually purchased the vehicle. But think of all the things that could go wrong without the required vehicle title. First off, the person selling you the car may still have a loan on that vehicle 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 loan agreements? Second, what if the seller had other liens attached to the vehicle that didn’t show up when you checked their credit score? Perhaps they used the car that you now own as collateral with another title loan company!
Why Online Title Loan Companies Require a Bill Of Sale
The only way to ensure a simple and effective application process is have the actual vehicle title in hand when you apply for a loan. Online title loan companies are going to let you keep driving the vehicle for the life of the loan, but you’ll still need to physically give them the vehicle pink slip as collateral for the loan. Even though the title is important, the bill of sale is still helpful to ensure you’re the rightful owner. A legitimate bill of sale will often state the price of the car when sold, the VIN and license plate number and dates and signatures of the two parties. All this information is very helpful if you ever run into trouble getting the actual vehicle pink slip or title.
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 State’s now have online portals where you can do everything online and get the vehicle title sent out to you in a matter of days. For instance, check out the Illinois expedited title service site where you can get your documents in one day. You can count on needing some type of documentation from the DMV with any of the largest and best title loan companies that you apply with.
Take Out a Surety Bond to Get A Title Loan
You can sometimes apply for a car title loan 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 though, is that it can act in place of an actual car title as it guarantees the vehicle in question is owned outright and is clear of any active liens. With a surety bond from a legitimate licensed company you can confirm your vehicle is free of liens and apply with an online title loan company.
Title Loans Options with a Bill of Sale
It’s often not possible to get approved for companies that offer online title loans with just a bill of sale and not the actual car title. The lender wants to know you own the car outright and that it’s free of any liens and other loan obligations. One way to possibly get a title loan without a bill of sale is to get a surety bond that essentially proves you own the vehicle outright. But most bonding companies will require the same documentation and paperwork that a DMV will need when you try to get a car title. 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!