Home > Ask The Get Out of Debt Experts > I Got a Title Loan from Title Max But My Car is Broken Now. – Kiara

I Got a Title Loan from Title Max But My Car is Broken Now. – Kiara

“Dear Steve,

In october of 2012, I obtained a title loan to assist me with repairing my vehicle because the transmission was going bad. I ended up getting about $600 and ended up repairing it with no problem. Then in november, i was laid off and the car started having issues again. I ended up homeless with a broken car and staying from place to place with friends and family. I have spoken to title max and explained my situation and they gave me a payment arrangement, stating if i didn’t make a payment by dec 15 2012 the vehicle would be repossessed.

I assured them i would do what ever it takes to make the payment and i made it! I also let them know that i didn’t know when i would be able to make another payment given my situation but i would be able to pay them in full once i get my income taxes back on feb. 5 but they said thats to long to wait.

This vehicle is all i have even though it is broken. It is in the shop now until i can afford to repair it which will be with my income taxes also. Until then, the vehicle can’t even drive. The loan is now almost $900 and with the damage to the vehicle it is now worth less than the loan. Being that the vehicle is broken, is there anyway the loan company will forfeit the vehicle???

Kiara”


Dear Kiara,

When you take out a title loan you pledge the car as collateral in case you don’t pay. Title Max can certainly repossess the car if you’ve defaulted. To avoid that from happening you’d need to negotiate a mutually agreeable resolution with them.

While logic might persuade someone to not repossess the car that is worth less than the loan, for lending companies, it’s not a logical process they follow but a policy process. If the process says you are late and when you are they take your car, then they will most likely take your car.

Again, the only way to avoid this would be to work out a suitable arrangement with them directly or file bankruptcy to legally terminate their lien against the car.

Please post your responses and follow-up messages to me on this in the comments section below.

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • melissa

    I was promised by a friend if I let her buy the car I had title loan on she wouldn’t be late nor miss a payment.also she gave word on paying the price agreement we agreed on .fully no matter the cars condition.i missed title payment and my apartment due to her not coming up. With her payment now she says she drove to Indiana and it’s in a shop getting fixed.but will not get me an address.now I am up a creek no boat no paddle don’t even know what I’m suppose to do.i should just beat her up.

    • I’m going with don’t beat her up. Sounds like your friend did not honor her promise for whatever reason and should return the car to you. Otherwise, don’t be surprised when the title loan company comes after you for the car that was promised as collateral. Having her bring the car back is a good solution.

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