What Happens If My Vehicle Is Repossessed
The laws covering repossession in the State of Texas are very straightforward. A state-licensed lender in Texas can repossess your vehicle if you take out a title loan and fall behind on the loan payments. That means you could face repossession just days after missing your monthly payment, and the lender doesn't even need to go to court to take the car or provide official notice. If you fail to take action or are unable to pay the amount owed, your lender will eventually sell the vehicle at auction and use the proceeds from the sale to settle the balance of your loan.
Now that we've covered the heavy stuff, let's discuss what happens in most situations when you fall behind on title loan payments and what you can do to avoid this. Keep in mind that having your vehicle repossessed is a scary thought, but it's not the end of the world. There are consumer protections in place to help you recover your vehicle, and companies offering title loans must comply with the law at every step when repossessing a vehicle.
Why Would A Lender Not Want To Repossess Your Car
In nearly every situation, your lender will want to avoid repossessing your vehicle and will work with you to get back on track with the payments. Repossession costs money, and they would rather avoid dealing with an expensive situation where they need to hire a tow truck driver and store your vehicle before it's sold at auction.
Excess costs add to their losses when they start the repo process, and it's in their best interest to get you back to making payments. Besides that, they make their money off the high interest rates you pay each month. Talk to any reputable company that offers title loans in Texas. Most will confirm they don't want to deal with repossession and would rather have a situation where you make on-time monthly payments.
Protect Yourself From A Repossession in Texas
It is vital for anyone who wants to take out an online title loan in Texas to work with a licensed loan agency or a company regulated by the Texas Department of Banking. Companies like these will be closely monitored for compliance and must strictly adhere to the Texas title lending regulations for 2025. You can find state-regulated title loan agencies using the state's lender database or searching online for local title loan companies in Texas. Ensure you deal with reputable agencies that are fully licensed to operate within Texas, and ask each lender about their process if you fall behind on payments.
Not all companies involved in a title loan operation are equal in their adherence to regulations and lending terms. When searching for a reputable loan agency, ensure they have a high volume of transactions and read their certified online reviews. Take note of companies with multiple complaints involving situations where they repossessed a vehicle. You'll want to choose a reputable title loan agency with a proven track record of customer satisfaction. Most of the larger title loan companies in Texas have both positive and negative reviews online and that's understandable. However, title loan companies that aggressively repossess vehicles will likely have far more complaints from customers who feel they were unfairly targeted or not given due notice of a repossession.
How To Avoid A Title Loan Repossession
The first step is to familiarize yourself with the current title loan repossession laws and use that information to avoid losing your vehicle. This is easier said than done because the rules and restrictions constantly change, and each state has different statutes regulating licensed finance lenders. Most companies will offer you a title loan according to the information you provide on a credit application. Do what you can to repay the loan quickly, as a lending agency will usually not ask for extra money. They're receiving monthly payments with high APRs and are happy to see the loan through.
If possible, try to pay off the loan early in one lump sum and contact customer service to see if you can renegotiate the payment terms. Consider refinancing or title loan buyout of the existing loan to get a fresh start and new financing terms.
Immediately contact your loan representative if there's a chance you may fall behind on payments. Most local title lenders will want to work with you to keep the payments current, and they will likely try to work out a payment plan or lower the amount owed for specific months if you're facing financial hardship.
Another lesser-known way to avoid a title loan repossession in Texas is to make it difficult for a lender to find your vehicle. This doesn't mean you should do anything illegal or drive the car to another state. However, according to state law, your lender can only repossess your vehicle on public property. Essentially, there's nothing they can do if your car is in your garage and inaccessible to tow trucks. Take this advice as a last resort, as it may give you a few days to work out a repayment plan with your lender.
Alternatives To A Repossession With Texas Title Loans
Just because your lender threatens to repossess your vehicle doesn't mean you're out of options. While the clock is certainly ticking, time is on your side, and Texas Title Loans can help you if you're in danger of losing your vehicle or if it's already been taken by your lender.
We work with multiple lenders in Texas that can refinance your existing loan. That means you may be able to secure a lower monthly payment, and you'll undoubtedly receive a lower interest rate if you qualify for a refinance. Another option is where your original lender is bought out, and you get a fresh start on a title loan with terms and payoff amounts that work for you. We often speak with customers who are just weeks away from having their vehicle repossessed, and we help them secure a buyout or repossession, allowing them to no longer worry about losing their vehicle.
Call Texas Title Loans at 844-243-3195 to learn how we can help you avoid an imminent repossession. We'll put together a new payoff estimate using just your current loan information and desired repayment terms, and there's a good chance you'll receive an estimate in under 30 minutes. Not everyone will qualify for a repossession or loan buyout, but there's no risk in calling us to explore options for new repayment terms with your current lender or finding a new loan with another lender in Texas.