English 
Spanish Are you interested in getting a title loan but unsure how much it costs or how long it will take to pay off? If so, you're in the right place. At Hyperlend, we feel it's best to disclose all applicable rates and fees for a title loan before you sign off on a lending term.
Interest rates for car title loans depend on your vehicle's value and where you live, as each state has different restrictions and caps on secured loans. Still, the average annual percentage rate for these loans can range from 20% to over 100% for a vehicle valued at $5,000 or more.
Remember that the APR listed here is an annual percentage rate, and rates can be even higher in extreme circumstances or if you fall behind on payments. So, paying back your title loan as quickly as possible helps avoid excessive rates. There's no getting around the fact that these interest rates are high and, in some cases, can be double or triple what you'll see for a traditional bank loan. While collateral backs your title loan, these loans often don't include a credit check, and there's a fair risk of default.
Interest Rates For A Title Loan
Hyperlend works with lenders that offer competitive interest rates. That means rates start at 20% and can exceed 200%. Each state has different restrictions on secured loans, and most limit the amount you can borrow. In California, for example, the APR is capped at 36% plus the federal funds rate for title loan amounts between $2,500 and $9,999. In other states, such as Utah, there's no limit on interest rates or loan amounts, and you can generally borrow up to 60% of your vehicle's value.
While the APR for a car title loan may seem higher than that for other personal loans, you can be confident that we check these terms often and only work with state-licensed lenders. We'll work to get you matched with a lender that has the best rates currently available in your state.
Some states cap interest rates for auto title loans. With that in mind, we recommend using secured loans only when necessary and seeking different forms of financial assistance like credit unions or short term installment lenders. Consider online title loans only if you have no choice, as they often have some of the highest interest rates and finance charges. Check the lending disclosures with any finance company you work with.
Car Title Loan Interest Rates By State
Rates vary by state, lender, and loan amount. The figures below reflect ranges discussed on this page.
| State / Scope | APR Range | Loan Amount | Notes |
|---|---|---|---|
| National Range (All States) | 20% – 200% | Vehicle valued at $5,000+ | Varies by state and lender |
| California | 30% – 35.99% | $2,500 – $9,999 | State APR cap applies in this range |
| South Carolina / Utah | No Cap | Up to 60% of vehicle value | No state interest rate limit |
California Repayment Example ($2,610 Financed)
Illustrative example showing how loan term affects total cost.
| Term | APR | Finance Charge | Monthly Payment | Total Paid |
|---|---|---|---|---|
| 12 Months | 35.84% | $533.14 | $255.40 | $3,138.74 |
| 24 Months | 35.86% | $1,081.12 | $150.94 | $3,517.70 |
| 36 Months | 35.94% | $1,691.17 | $116.60 | $4,298.17 |
| 48 Months | 35.94% | $2,337.15 | $101.69 | $4,954.19 |
Title loans issued in California with loan amounts between $2,500 and $9,999 carry an APR of 30% to 35.99%, with repayment terms ranging from 12 to 48 months. The figures above are illustrative, and the actual rate, term, and payment amount offered to you will depend on your lender, loan amount, and state of residence.
What Percentage Of Borrowers Will Pay Back A Title Loan
There's no denying that some title loans default, which ultimately means the lender repossesses your vehicle. However, about 4 in 5 borrowers avoid repossession. A major reason customers repay their loans is that they prioritize secured payments over other unsecured loans because they don't want to lose their vehicle. Still, most borrowers eventually pay back the amount borrowed.
If you default on your payment, it doesn't mean your vehicle will be repossessed. Even then, you can contact your lender and work out a payment plan to get back on track. Most states have consumer lending laws that limit what a lender can do if you fall behind on the monthly payments.
Make Extra or Early Payments To Avoid Excessive Finance Charges
Yes, you can always repay your loan early, and that's always recommended if you can afford the extra payments. You can save thousands in interest by paying early and shaving a few months off the loan term.
If you're dealing with a high-interest loan, contact Hyperlend. We'll work with you to find a more manageable repayment term and help you find other lenders in your state offering low-rate secured loans.
What Else To Know About Title Lending Interest Rates
Before you agree to take out a car title loan, you need to understand the terms and conditions, including the interest rate and fee structure. What may be a high interest rate in one state may not be possible in another, since each state has different restrictions that regulate rates and terms.
Another thing to remember about interest rates is whether or not there are any prepayment penalties. Most lenders should offer you a loan without charging fees for an early payoff. Find the nearest title loan companies licensed in your state and willing to disclose all initial application costs.
Contact Hyperlend at 800-971-3022 to learn more about the interest rates to expect with a title loan. We can also help you refinance your existing loan with a lower interest rate and potentially a faster repayment term. Apply online or call us today.