Auto Title Loan Fees

Like most financial products, taking out a car title loan can come with certain fees. While the specific fees that may apply to your car title loan or loan application can vary from one lender to the next, it is important to have a good understanding of the potential title loan fees that you might come across when applying for fast cash with your car or truck as collateral.

The potential fees that you may be faced with when getting a title loan can be put into two broad categories: fees that can apply to taking out a loan, and fees that can apply while you pay back your loan.

Fees While Taking Out a Title Loan

• Application fee: Loan application fees are upfront fees that a lender charges for processing a loan application. If charged, this fee is due when the application is processed, and may not be refundable, even if the application is not approved. Application fees are less common for title loans since title loan borrowers are in need of cash.
• Origination fee: A loan origination fee is a fee that lenders charge for processing the loan. It is primarily meant to cover the lender’s cost of processing an application and executing the loan. Origination fees are due at the time that the loan is completed, and are usually taken out of the total loan amount. These fees may be expressed both in dollars and as percentage of the loan amount.
• DMV fee, title fee, registration fee: When your title loan agreement is finalized and you’ve received your loan proceeds, the title lender will place a lien on your vehicle title. States usually charge lenders a fee for processing the lien placement. Like other auto finance companies, title lenders tend to pass on this government fee to the customer in the form of a DMV fee, title fee or registration fee that’s disclosed in the loan contract. These fees are generally expressed as a dollar amount.
• Insurance fee: some title lenders require very specific insurance coverage for the vehicles that are used to secure the loan. If a title loan borrower does not currently have the required coverage, some lenders charge an insurance fee that allows the customer to keep their existing insurance coverage in exchange for paying this fee. Insurance fees primarily apply to some Florida title loan companies.
• CSO or CAB Fee: Credit Services Organizations (“CSO”) and Credit Access Businesses (“CAB”) are companies that help consumers get a loan from another, independent lender. The CSOs or CABs charge a fee for this service, which is called a CSO fee or CAB fee. CSOs or CABs primarily operate in Texas and Ohio – if you don’t live in one of these states, you are not likely to come across this type of fee when getting a title loan.

Fees While Paying Back a Title Loan

The most common fees that can apply while you make payments on your title loan include: 

• Late fee: if a borrower is late with making a title loan payment, the title lender or loan servicer may add a late fee to the loan. This can happen as soon as the loan is one day past due, but some lenders may offer a grace period of a few days before a late fee is assessed. Late fees are typically expressed as a dollar amount, or a percent of the past-due payment.
• NSF fee or returned payment fee: non-sufficient fund (“NSF) or returned payment fees apply if you make a loan payment but the payment does not get cleared, i.e. fully processed. This can happen when you schedule a payment from your bank account, but when the lender or loan servicer request the payment to be processed, your bank account is already in the negative or does not have sufficient funds to cover the payment. As a result, your bank will return the payment request, and an NSF or returned payment fee may be added to your title loan.
• Payment processing fees: many title loan lenders offer different ways you can make your loan payment, including bank account payments, card payments, or even payment through local participating money transfer locations. Some of these payment channels may not be free of charge, and a processing fee may be applied to your payment.
• Pre-payment fee or pre-payment penalty: while all borrowers should strive to pay off their loan, and possibly even do so earlier than scheduled, some lenders charge a pre-payment fee to customers who pay off early.

How Much Are Title Loan Fees?

The amount of title loan fees depends on the lender you work with, the state you live in, and can also depend on the specific terms of your loan, such as the loan amount. Since lenders can set their own fees in line with the lending laws that apply to them, it’s therefore not possible to get a specific answer to this question without applying for a loan or checking any fee disclosures that lender may post on their website or at their loan stores.

However, as a point of reference, here are some fee ranges you may come across when applying for a title loan with different lenders:

• The DMV, title or registration fee can range from as little as $4 in states like Arizona to around $80-$90 Florida and Louisiana title loans.
• Late fees, depending on your state of residence, will likely range from $10 to $35.
• NSF fees or returned item fees typically range from $10 to $30.

Again, keep in mind that your lender or loan servicer may have fees outside of this range, so be sure to check your loan contract before you sign!¹

Where Can I Find Out About My Title Loan Fees?

If you are planning to take out a title loan, the best place to find out about the potential title loan fees is your loan agreement. The loan contract should disclose all fees that do or can potentially apply to your loan. While it may be a bit tedious to read all the fine print, it is a good idea to be well informed about all fees before signing your loan contract.

In some states, lenders may also be required to post a schedule of fees on their website or at their loan stores.

Lastly, if you have any questions about the loan terms and fees, you can also ask your loan officer for a detailed explanation of the fees that may apply to your title loan approval.¹

Tips For Minimizing Title Loan Fees

As mentioned above, it’s in your best interest to minimize the fees that you can control. Here are some of the things you can do to minimize title loan fees:

• Make payments on time: by making your title loan payments on or before the due date, you can avoid having late fees added to your account.
• Choose payment channels based on processing fees: if you make most or all of your payments using payment channels that have low or no processing fees, you may be able to save a sizeable amount of these fees over the life of your loan.
• Communicate with your lender or loan servicer: if you anticipate that you won’t be able to make a payment by its scheduled due date, communicate with your lender or loan servicer as early as possible. If you open the channels of communication early, your lender or loan servicer may be able to assist you with a due date change or payment extension to avoid falling past-due and having a late-fee added to your account.
• Ask for assistance: if you have accidentally missed a payment and have shown responsible payment behavior in the past, your lender or loan servicer may be willing to assist you with a fee waiver for a late payment fee or accidental returned payment.
• Comparison shop: as mentioned above, the fees that apply to a title loan can vary from one lender to the next. It’s therefore a good idea to comparison shop and see if you can get approved for multiple loan offers from different lenders. If you are, be sure to not only check if the loan amount and payment meet your needs, but also compare the APR of your loan offer and compare the amount of fees that the lender will charge.

Are There Hidden Fees With Title Loans Serviced by LoanMart?

When you take out a title loan, you should not be confronted with any hidden fees after the fact. Your loan agreement should state all the possible fees that can or may apply to your loan. With title loans serviced by LoanMart, transparency is a key part of the loan benefits. There are no hidden fees and no pre-payment fees.

With your newfound understanding of possible title loan fees, you should be in a good position to decide if a title loan could be right for your financial needs. To get started with an online title loan serviced by LoanMart, simply complete our online application and see what you qualify for!¹