A car title loan is a short term, high interest loan using the vehicle title as collateral. The borrower’s name must be on the title and there can’t be any loans on the vehicle. You keep the car while the loan is outstanding and continue to drive it.
If the loan is not repaid, the vehicle can be repossessed and sold at public auction. If there is any surplus after the auction, it will be returned to the borrower.
Check out our blog post, Car Title Loans for Dummies.