Title loans are an easy and quick way to get cash using your car’s equity. However, lenders have specific requirements for approving these loans, and the necessary documents can sometimes cause confusion. One of the most questioned and misunderstood documents is the bill of sale.
Today, we’ll talk about title loans and the bill of sale to determine whether you can obtain a title loan with just a bill of sale. If that is not possible, we will outline the formal requirements you must meet to qualify for a title loan.
What is a Bill of Sale?
A bill of sale is like a detailed receipt for your car purchase. It’s not mandatory in every state, but some require it when registering the vehicle with the DMV (Department of Motor Vehicles). It basically protects both the buyer and seller by creating a written record of the sale.
Can You Get a Title Loan with Just the Bill of Sale?
If you have recently purchased a vehicle, the seller should have provided you with a bill of sale. You might think you can apply for a car title loan with just the bill of sale, but that’s not the case because one key requirement for a car title loan is proving you own the car.
To show the loan agent that you legally own the car, you must provide a car title in your name. If you don’t have the title, you’ll need to request a title transfer before applying for a car title loan.
How to Get a Car Title in Your Name Using the Bill of Sale?
The bill of sale is a great first step, proving you bought the car. To start the title transfer process, you will need the seller to sign the back of the car title, which transfers ownership to you. With the signed title in hand, you can apply for a title transfer.
Most states allow you to do this in person at the DMV or by mail. In-person is usually faster; you might even walk out with a temporary title that same day.
In addition to the bill of sale, you’ll need a few other documents for the title transfer. Here’s what to bring:
- The signed car title from the seller.
- A completed application for title transfer.
- A state ID or driver’s license.
*Fee alert: You’ll also need to pay a transfer fee, which varies by state and can range from a few dollars to around a hundred.
Check your state’s DMV website to ensure the required documents are ready before you apply in person.
Parting Thoughts
A bill of sale alone usually won’t qualify you for a title loan, but it’s necessary to transfer the title to your name, which lenders usually require. If you only have a bill of sale, first apply for a title at your DMV. Once you have the title, you can then approach a title loan lender to explore your options.
Interested in applying for a title loan? Advantage Finance LLC makes the process quick and stress-free. Contact us today at (281) 410-5337 to learn how title loans work and what you need to get started.
