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Car title loans are short-term loans that use the title of a car as collateral. They are also referred to as pink slip loans, auto equity loans, or auto title loans. To qualify for a car title loan, borrowers must own the car outright, without any liens or encumbrances. The borrower must also have a valid driver's license and proof of income. The loan amount is usually based on the value of the car, and the borrower must provide the lender with the car's title.