How to Borrow Money Against a Car Title in New Jersey

by Carl Carabelli ; Updated July 27, 2017

To borrow money from a bank in New Jersey, you need some form of collateral. While banks favor cash or real estate collateral, other options exist, such as a car title. While a car title is less desirable as a collateral type, you can offer a car title to secure a loan. Typically, New Jersey lenders allow shorter terms on loans secured by car titles. This is because cars depreciate in value each year, making them unable to support long-term loans. The process is not much different than other types of loans.

Step 1

Fill out a loan application at the lender of your choice. In the “Collateral” section, indicate the vehicle you will be borrowing against. Write the year, make, model and vehicle identification number (VIN). This information will help the lender determine the value.

Step 2

Acquire the lender’s corporation code (corpcode) from your loan officer. You will need this number for the next step.

Step 3

Obtain and complete a New Jersey motor vehicle financing statement, Form SS-85C. The form is available at all New Jersey Motor Vehicle Commission locations or on the agency’s website (A link to the website is provided in this article's Resources section). Include the lender’s name and corpcode in the lien holder section.

Step 4

Pay the fee. As of 2011, the fee to encumber a vehicle title in the state of New Jersey is $85.00.

Step 5

Sign the loan documents and give the title to the lender. The lender will hold the title until the obligation is paid. Once satisfied, it will sign the title to release the lien and return the original to you.

About the Author

Carl Carabelli has been writing in various capacities for more than 15 years. He has utilized his creative writing skills to enhance his other ventures such as financial analysis, copywriting and contributing various articles and opinion pieces. Carabelli earned a bachelor's degree in communications from Seton Hall and has worked in banking, notably commercial lending, since 2001.